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SENIOR SERVICE CORPORATION, HEALTHSOUTH REHABILITATION TO EXCHANGE EQUITY FOR DEBT

 SENIOR SERVICE CORPORATION, HEALTHSOUTH REHABILITATION
 TO EXCHANGE EQUITY FOR DEBT
 LOUISVILLE, Ky., Nov. 27 /PRNewswire/ -- Senior Service Corporation (NASDAQ: SENR) will exchange a new issue of convertible preferred stock for a $5.5 million note to HEALTHSOUTH Rehabilitation Corporation (NYSE: HRC) and a $1.5 million minority interest held by HEALTHSOUTH in a Senior Service subsidiary. The stock is convertible into 3.74 million shares of Senior common stock.
 The $5.5 million note and minority interest resulted from Senior's purchase of three HEALTHSOUTH operations in 1989. The acquisitions comprise the core of Senior's Rehabilitation Products and Services division, which operates companies in Alabama, Florida and Massachusetts.
 As part of the agreement, HEALTHSOUTH's chairman, Richard M. Scrushy, and treasurer, Michael D. Martin, will become directors of Senior.
 "This agreement strengthens our balance sheet," said William Yarmuth, Senior's president and chief operating officer. "But just as important will be a stronger relationship with HEALTHSOUTH and Richard Scrushy, who occupy important positions in America healthcare. They can greatly assist us in achieving our growth objectives."
 Kenneth Hamlet, chairman and CEO of Senior Service, commented that the exchange will "significantly increase the company's equity, thereby enabling us to pursue more aggressively acquisitions in the home health industry, which, along with expanding our adult day care business, is our top priority."
 Senior Service provides comprehensive home health care services, including home nursing, home infusion therapy, and rehabilitative services, under he name Caretenders. The company also is the only publicly-traded company in the rapidly developing adult day care business. Its centers, operating under the name Almost Family, are leaders in the field.
 "Over the years HEALTHSOUTH and Senior Service have enjoyed an excellent working relationship. Senior Service provides home health care services, home medical equipment, and orthotics and prosthetics to many HEALTHSOUTH facilities," according to Scrushy, HEALTHSOUTH's chairman, president and CEO. "The restructuring of this debt will enable Bill Yarmuth to strengthen his company and implement his growth plan."
 HEALTHSOUTH Rehabilitation Corporation currently operates 62 inpatient and outpatient locations in 24 states. With nearly 4,000 employees, Birmingham, Alabama-based HEALTHSOUTH is considered one of the nation's leading independent providers of health and rehabilitation services.
 The agreement also endorses Senior directors' proposal to change the company's name to Caretenders Healthcorp, which will be submitted to stockholders at the company's annual meeting next month.
 -0- 11/27/91
 /CONTACT: John Yarmuth, Senior VP-Communications and Public Affairs, Senior Service Corporation, 502-425-4707/
 (SENR) CO: Senior Service Corporation; HEALTHSOUTH Rehabilitation Corporation ST: Kentucky, Alabama IN: HEA SU:


DF -- CH002 -- 7656 11/27/91 09:49 EST
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Publication:PR Newswire
Date:Nov 27, 1991
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