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REHABCLINICS ACQUIRES REGIONAL PHYSICAL THERAPY PRACTICE; INCREASING SIZE OF COMPANY BY 30 PERCENT

 KING OF PRUSSIA, Pa., Sept. 16 /PRNewswire/ -- RehabClinics, Inc. (NASDAQ: RCII)(RCI), today announce the acquisition of Pat Croce's SPORTS Physical Therapists, a major outpatient physical therapy practice with revenues in excess of $25 million per year and attractive pre-tax margins. SPORTS owns and/or manages 40 clinics in 11 states (Delaware, Florida, Georgia, Indiana, Maryland, Minnesota, New Jersey, Ohio, Pennsylvania, Tennessee and Wisconsin.) Terms of the agreement were not disclosed.
 "This is an excellent strategic acquisition for RCI," said James C. New, president of RCI. "We expect the impact of this acquisition on this year's earnings to be neutral and turn additive for 1994. For the six months ended June 30, 1993, RCI's net revenues increased 75 percent to $32,563,000, compared to the same period last year. Net earnings for the first six months improved to $1,738,000 from a net loss of $241,000 for the same period a year ago. SPORTS adds core locations to RCI's operations with minimal overlap with our present clinics. Pat and his management group are an excellent complement to RCI's team."
 "The merger of SPORTS and RCI is great," said Pat Croce, founder of SPORTS, who will be executive vice president responsible for RCI's marketing and sales. "The two organizations share the same philosophies and commitments to excellence in rehabilitative therapy. RCI brings to SPORTS, financial and legal expertise, national therapist recruiting programs, strong MIS systems, clinic acquisition expertise and a broad, diversified therapy mix."
 "SPORTS brings to RCI a specific expertise in sports rehabilitation, clinic startups, a solid reputation with referral sources and excellent programs in total quality management, therapist training, sales and marketing as well as promotions," said Mr. New. "Together, we emerge as the premier outpatient rehabilitation company in the country better able to serve patients, referral sources and payors."
 SPORTS in Bryn Mawr, Pa., was founded in 1983 and has more than 450 employees. RCI will structure a fourth region centered in the Mid- Atlantic area, which will be headed by Regional President Edward R. Miersch, who was previously SPORTS' president. SPORTS' commitment to clinical excellence resulted in its winning the 1993 Greater Philadelphia Quality Award for Service and begin top ten finalist for the Malcolm Baldridge National Quality Award in 1992.
 RCI's strategy is to develop the most extensive network of outpatient physical therapy clinics in selected markets through acquisitions and internal growth. This strategy is designed to capitalize on the highly fragmented nature of outpatient physical therapy by integrating innovative management and information systems, and marketing and sales programs into strong and local clinical practices. RCI has established itself as one of the largest outpatient physical therapy companies in the country now with 179 clinics in 22 states.
 -0- 9/16/93
 /CONTACT: James C. New, president, or Alan Vinick, senior vice president of RehabClinics, Inc., 215-992-7600, or Susan Noonan of Noonan/Russo Communications, Inc., 212-696-4455/
 (RCII)


CO: RehabClinics Inc. ST: Pennsylvania IN: HEA SU: TNM

SM-TS -- NY009 -- 2548 09/16/93 08:25 EDT
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Publication:PR Newswire
Date:Sep 16, 1993
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