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GRANCARE REVISES COMPUPHARM ACQUISITION

 CULVER CITY, Calif. Oct. 27 /PRNewswire/ -- Grancare Inc. (NYSE: GC) today announced a change in the terms of its agreement to acquire CompuPharm Inc. Under the new terms, GranCare will issue a fixed number of 3.0 million shares of its common stock and assume approximately $16 million of CompuPharm's outstanding debt. Under the original agreement, GranCare was to issue approximately 3.8 million shares of its stock (at the present stock price) as well as assume the outstanding debt. This revision represents a 21 percent reduction in the number of shares to be issued, which, in part, resulted from recent retroactive reimbursement charges which decreased CompuPharm's earnings approximately 9 percent for 1992 and 13 percent for 1993 and, in part, from GranCare's conviction that recent market prices did not accurately reflect the value of its stock.
 The acquisition will be accounted for on a pooling of interest basis. GranCare anticipates that in 1994 the addition of CompuPharm will add over $70 million to its revenues and significantly enhance earnings. The closing of the transaction is expected before the end of 1993 and is conditioned upon the execution of a revised agreement and approval of the shareholders of both companies.
 Gene E. Burleson, GranCare's president and chief executive officer, commented, "We expect to be able to generate substantial incremental profit through the combined expertise of both companies including the highly computerized operational systems of CompuPharm and the addition of several of GranCare's product lines."
 GranCare also operates 83 long-term health care facilities totaling more than 11,300 beds located in California, Michigan, Wisconsin, Colorado, Arizona and South Dakota and a broad range of specialty medical services.
 -0- 10/27/93
 /CONTACT: Gene E. Burleson of GranCare, 310-645-1555; or Craig Parsons, 310-207-9300, of Pondel Parsons & Wilkinson/
 (GC)


CO: GranCare Inc.; CompuPharm Inc. ST: California IN: HEA SU: TNM

NY-LM -- LA021 -- 7286 10/27/93 12:22 EDT
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Publication:PR Newswire
Date:Oct 27, 1993
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