National Home Health Care Corp. Announces Earnings for the Quarter and Fiscal Year Ended July 31, 2005

Business Wire, Oct 28, 2005

SCARSDALE, N.Y. -- National Home Health Care Corp. (National Market: NHHC), a provider of home health care and staffing services in the Northeast, today reported results for the quarter and fiscal year ended July 31, 2005.

Net patient revenue for the quarter ended July 31, 2005 was $25,871,000, an increase of 9.8% from $23,570,000 for the quarter ended July 31, 2004. Net income for the quarter ended July 31, 2005 was $592,000, or $.10 per diluted share, as compared to a net income of $1,219,000, or $.21 per diluted share, for the quarter ended July 31, 2004.

Net patient revenue for the fiscal year ended July 31, 2005 was $98,461,000, an increase of 4.0% from $94,592,000 for the fiscal year ended July 31, 2004. Net income for the fiscal year ended July 31, 2005 was $3,567,000, or $.62 per diluted share, compared to a net income of $4,720,000, or $.83 per diluted share, for the fiscal year ended July 31, 2004.

The increase in net patient revenue in the quarter ended July 31, 2005 was primarily attributable to the acquisition of Helping Hands Health Care on May 22, 2005. The decrease in net income for the quarter ended July 31, 2005 was primarily attributable to an additional provision for possible losses of $712,000, due to the bankruptcy of certain customers of the Company during the quarter.

The increase in net patient revenue for the fiscal year ended July 31, 2005 was attributable to the expansion of the Company's operations in New Jersey, Connecticut and Massachusetts, offset by a decline in revenue from the New York operations. The decrease in net income for the fiscal year ended July 31, 2005 was attributable to higher wages paid to all caregivers without corresponding increases in reimbursement rates and increased general and administrative expenses.

CONTACT: Steven Fialkow, President and Chief Executive Officer or Robert P. Heller, Chief Financial Officer (914) 722-9000.

STATEMENT OF OPERATIONS DATA:

                         Quarter Ended           Fiscal Year Ended
                            July 31,                  July 31,
                       2005         2004         2005         2004
                   ------------ ------------ ------------ ------------

Revenues           $25,871,000  $23,570,000  $98,461,000  $94,592,000

Operating expenses  25,073,000   21,497,000   93,090,000   86,975,000

Income from
 operations            798,000    2,073,000    5,371,000    7,617,000

Other income:
   Interest income      82,000       44,000      275,000      143,000

Income before
 taxes                 880,000    2,117,000    5,646,000    7,760,000

Provision for
 income taxes          288,000      898,000    2,079,000    3,040,000

Net income             592,000    1,219,000    3,567,000    4,720,000

Earnings per share
 - diluted               $0.10        $0.21        $0.62        $0.83

Weighted average
 shares - diluted    5,749,550    5,752,416    5,732,842    5,700,770

Dividends declared
 per share              $0.075        - - -        $0.30        - - -


BALANCE SHEET DATA:
                           July 31,
                       2005         2004
                   ------------ ------------

Cash and cash
 equivalents       $16,184,000  $20,185,000

Total current
 assets             37,407,000   39,616,000

Total assets        55,600,000   53,486,000

Total current
 liabilities         4,678,000    4,447,000

Non-current
 liabilities             - - -        - - -

Stockholders'
 equity             50,922,000   49,039,000