Continental Home Healthcare: Letter of Intent With DVI Business Credit

Business Wire, June 30, 1999

VANCOUVER, British Columbia--(BUSINESS WIRE)--June 30, 1999--

Home Healthcare (VSE:CHT.) Continental Home Healthcare Ltd. (the "Company") is pleased to announce that the Company has signed a letter of intent with DVI Business Credit ("DVI") for a revolving line of credit with a total commitment amount of US $3.0 million.

DVI is an asset-based lender that specializes in healthcare financing.

The revolving line of credit contemplated will be advanced to the Company based on eligible accounts receivable as defined in the proposed lending agreement. Final approval of the agreement is subject to DVI's due diligence and credit committee approval. The Company's accounts receivable balance at March 31, 1999 was CDN $5.2 million.

Management is extremely pleased to enter into this agreement with DVI after negotiating terms with six potential financing entities. Management has been working very hard to impose a financing structure which would supply the Company with the funding necessary to continue its acquisition strategy, while at the same time being entirely non-dilutive to shareholders. Management is confident that a definitive agreement will be reached and that funding can be attained in approximately six weeks.

Upon completion, Management anticipates that up to US $1.0 will be dedicated to working capital and the remaining funding will be allocated for completing acquisitions.

Continental Home Healthcare Ltd. is a provider of durable and home medical equipment to individuals and healthcare institutions with branches in Glendale and Indian Wells, California; Las Vegas, Nevada; and British Columbia, Canada.

On Behalf of the Board

Robert Thornton, Chief Executive Officer

The Vancouver Stock Exchange has neither approved nor disapproved the contents contained herein.