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NOVACARE PROVIDES ACQUISITION FINANCING FOR REHABCLINICS

 KING OF PRUSSIA, Pa., Sept. 22 /PRNewswire/ -- NovaCare, Inc. (NYSE: NOV), today announce that it finalized the terms of an agreement to provide financing of up to $30 million to RehabClinics, Inc., in conjunction with RehabClinics' recently announced acquisition of SPORTS Physical Therapists. The loan, which is secured by the stock of the operating subsidiaries of RehabClinics, carries a market rate of the prime rate plus 2 percent and is payable on demand after April 1, 1995.
 "This loan is an excellent interim use of NovaCare's excess cash, offering an attractive return secured by a business we know very well," said Timothy E. Foster, senior vice president and chief financial officer of NovaCare.
 RehabClinics, Inc., headquartered in King of Prussia, is the nation's largest outpatient physical therapy company. John H. Foster is chairman of the board and chief executive officer of both NovaCare and RehabClinics.
 NovaCare, Inc., is the nation's largest provider of rehabilitation therapy services on a contract basis to health care institutions and is the leading provider of orthotic and prosthetic patient care services in the United States. The company operates seven acute rehabilitation hospitals and six community integrated programs and, following the completion of the previously announced acquisition of Rehabilitation Hospital Corporation of America, will operate an additional five rehabilitation hospitals and three freestanding outpatient facilities. NovaCare's employees treat more than 26,000 patients per day.
 -0- 9/22/93
 /CONTACT: Susan J. Campbell, director - investor relations of NovaCare, 215-992-7425, or Anthony J. Russo, Ph.D. of Noonan/Russo Communications, 212-696-4455/
 (NOV)


CO: NovaCare, Inc.; RehabClinics, Inc. ST: Pennsylvania IN: HEA SU: FNC

TW-SH -- NY011 -- 4556 09/22/93 09:32 EDT
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Publication:PR Newswire
Date:Sep 22, 1993
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