RehabCare Group, Inc. Postpones Its 2004 Fourth Quarter Earnings Relea

    Business Editors

    ST. LOUIS--(BUSINESS WIRE)--Feb. 9, 2005--

Expects to Report Full Year 2004 Operating Revenues of $383.8 Million
    and Operating Earnings of $41.8 Million

    RehabCare Group, Inc. (NYSE:RHB) today announced that it has postponed its fourth quarter and full-year earnings release and conference call previously announced for Thursday, February 10, 2005. The delay provides additional time for management to review and KPMG, LLP, the Company's independent accountants, to audit RehabCare's equity interest in its unconsolidated affiliate, InteliStaf Holdings, Inc. The Company expects to release earnings and hold its conference call no later than March 10.
    InteliStaf's independent accountants have informed the Company that, under current SEC standards, they do not consider themselves independent with respect to RehabCare. This determination requires KPMG to conduct separate audit procedures on InteliStaf's financial statements and with respect to the Company's 25 percent investment in InteliStaf.
    RehabCare Group expects to report fourth quarter operating revenues of $95.1 million, operating earnings of $11.4 million and earnings before income taxes and equity in net loss of affiliate of $11.1 million. The Company also expects to report full year operating revenues of $383.8 million, operating earnings of $41.8 million and earnings before income taxes and equity in net loss of affiliate of $41.0 million.
    RehabCare Group, Inc., headquartered in St. Louis, MO, is a leading provider of program management services for hospital inpatient rehabilitation and skilled nursing units, outpatient therapy programs and contract therapy services in conjunction with more than 800 hospitals and skilled nursing facilities in 39 states, the District of Columbia and Puerto Rico. RehabCare is pleased to be included in the Russell 2000 and Standard and Poor's Small Cap 600 indices.

    This release contains forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties that may cause RehabCare's actual results in future periods to differ materially from forecasted results. These risks and uncertainties may include, but are not limited to, the ability of RehabCare to integrate acquisitions and to implement client partnering relationships within the expected timeframes and to achieve the revenue and earnings levels from such acquisitions and relationships at or above the levels projected; changes in and compliance with governmental reimbursement rates and other regulations or policies affecting RehabCare's continuing businesses; RehabCare's ability to attract new client relationships or to retain and grow existing client relationships through expansion of RehabCare's hospital rehabilitation and contract therapy service offerings and the development of alternative product offerings; the future financial results of InteliStaf Holdings, Inc., RehabCare's unconsolidated affiliate, and the effect of those results on the financial condition and results of operations of RehabCare; the adequacy and effectiveness of RehabCare's operating and administrative systems; RehabCare's ability and the additional costs of attracting administrative, operational and professional employees; significant increases in health, workers' compensation and professional and general liability costs; litigation risks of RehabCare's past and future business, including RehabCare's ability to predict the ultimate costs and liabilities or the disruption of its operations; competitive and regulatory effects on pricing and margins; and general economic conditions, including efforts by governmental reimbursement programs, insurers, healthcare providers and others to contain healthcare costs.
    NOTE: More information on RehabCare can be found on the World Wide Web at http://www.rehabcare.com.

--30--LC/na*

CONTACT: RehabCare Group, Inc. Vincent L. Germanese or Betty Cammarata, 314-863-7422 or Financial Dynamics Gordon McCoun/Lanie Marcus Press: Sean Leous 212-850-5600

KEYWORD: MISSOURI INDUSTRY KEYWORD: MEDICAL EARNINGS SOURCE: RehabCare Group, Inc.

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