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IN HOME HEALTH FORECASTS THIRD-QUARTER RESULTS; IMPLEMENTS CHANGES TO IMPROVE OPERATIONS

 MINNETONKA, Minn., July 12 /PRNewswire/ -- In Home Health, Inc. (NASDAQ-NMS: IHHI) announced that earnings for its fiscal third quarter ended June 30, 1993, are expected to be slightly lower than the comparable quarter a year ago, although revenues will be substantially higher.
 "While overall revenues continue to grow, earnings are expected to be slightly less than a year ago, reflecting flat infusion revenues and increases in general, selling and administrative expenses," said Judy M. Figge, president and chief executive officer. "We have opened four new infusion pharmacies in the last 12 months which have adversely affected profitability during the quarter. We continue to believe that infusion therapy is an important part of home health care and that profit margins will improve once we have achieved greater market share. Additionally, we believe that, longer-term, hospice services, recently added in three of our 16 markets, along with our pilot program in women's home care, will contribute to infusion and high-tech nursing revenue growth."
 "The increase in general, selling and administrative expenses this quarter is also a result of additional overhead associated with the acquisitions made when we entered three new markets in late fiscal 1992, as well as three additional markets in fiscal 1993," Ms. Figge continued. "The costs related to implementing our new Management Information System, resulting from training of personnel and from running two systems concurrently, are also a factor in the higher overhead expenses."
 Ms. Figge further commented that while management is disappointed in the weakness of its infusion business and in the slowness of its new markets to absorb increased expenses and, thus, to begin to contribute to bottom-line results, management expects income levels to start to improve during the last quarter of fiscal 1993, which ends Sept. 30.
 During the third quarter, the company began a program under which all senior executives have taken on additional active involvement in operations at assigned branches. "The purpose is to observe current processes, coach branch personnel, improve our name recognition within new communities and look for process/operational improvement opportunities," the chief executive noted. "To date, the program has already revealed a number of opportunities for improvement in both marketing and operations. Changes are currently being implemented, and the company expects to see the benefit of these efforts in the near future."
 "In order to contain costs, we will not be opening any additional pharmacies until we see an appreciable increase in infusion revenues. We now have in place in our existing pharmacies sufficient capability to handle significant future growth," Ms. Figge said. "Likewise, the company will limit its entry into new markets during fiscal '93 to the three markets entered earlier this year. Near-term, the company intends to continue its expansion efforts by opening additional satellite offices in certain existing markets where this can be accomplished with minimal impact on earnings."
 In Home Health provides comprehensive health-care services to clients of all ages in their own homes. The company currently operates 37 locations in 16 geographic markets, including Phoenix, Ariz.; Los Angeles and San Francisco; Denver; Chicago; Detroit; Minneapolis/ St. Paul; Kansas City and St. Louis, Mo.; Raleigh-Durham, N.C.; Cincinnati; Pittsburgh; Dallas and Houston; Norfolk, Va.; and Seattle.
 -0- 7/12/93
 /CONTACT: Judy M. Figge, president and CEO, In Home Health, Inc., 612-449-7500/
 (IHHI)


CO: In Home Health, Inc. ST: Minnesota IN: HEA SU: ERP

ML-DD -- DE004 -- 0262 07/12/93 09:05 EDT
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Date:Jul 12, 1993
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