Apria Healthcare Group Inc. Terminates Merger Agreement With Vitas Healthcare Corp

Business Wire, Nov 13, 1996

COSTA MESA, Calif.--(BW HealthWire)--Nov. 13, 1996--Apria Healthcare Group Inc. (NYSE:AHG) announced today that its board of directors has exercised Apria's rights to terminate the company's June 28, 1996 merger agreement with Vitas Healthcare Corp., the Miami, Fla.-based hospice provider. Apria Chairman and Chief Executive Officer Jeremy M. Jones attributed the board's decision primarily to the fact that merger-related deadlines were not met and that recent operating performance at both companies would have resulted in the transaction being dilutive in 1997.

Today's announcement follows news issued by the company last week that it was in discussions with Vitas concerning possible alternatives to the merger agreement.

"While it is unfortunate that discussions with Vitas did not result in an acceptable alternative relationship that would have benefited both parties, we believe the board's decision not to proceed with the merger is in the best interest of Apria shareholders," Jones said.

Apria expects to record approximately $4-$8 million in additional expenses in the fourth quarter related to Vitas merger activities, he noted.

Apria provides and/or manages comprehensive integrated homecare services, including home infusion, respiratory therapy, home medical equipment, nursing and coordinated care through more than 350 locations serving patients in 49 states. Based in Costa Mesa, Calif., Apria is the nation's largest integrated home healthcare provider.

CONTACT: Apria Healthcare Group Inc., Costa Mesa

Lawrence H. Smallen, Chief Financial Officer

714/427.4935

or

Sheree L. Aronson, Director, Investor Relations

714/427.4919