Sun Healthcare

     Irvine, Calif. (Sept.8, 2008) - Sun Healthcare Group, Inc. (NASDAQ GM: SUNH) announced that SolAmor Hospice Corporation, which operates Sun’s hospice business, completed the acquisition of Holisticare Hospice, LLC on Friday, Sept. 5, for a cash purchase price of $7.7 million. Holisticare is a privately-held, Medicare-certified hospice company in New Jersey. Holisticare currently provides service to 140 hospice patients with an annualized revenue run rate of $7.7 million.
     "We are pleased that this acquisition, while small, adds New Jersey to our current complement of coverage through SolAmor Hospice. We continue to look for growth opportunities in our hospice business both through acquisitions and start-ups," said Rick Matros, chairman and chief executive officer of Sun Healthcare Group, Inc.
     SolAmor Hospice, with this current acquisition, provides hospice services in six states to more than 400 patients daily, resulting in an annualized revenue run rate of $22.0 million.

About Sun Healthcare Group, Inc.

     Sun Healthcare Group, Inc., with executive offices in Irvine, California, owns SunBridge Healthcare Corporation and other affiliated companies that operate long-term and postacute care centers in many states. In addition, the Sun Healthcare Group family of companies provides therapy through SunDance Rehabilitation Corporation, hospice services through SolAmor Hospice Corporation and medical staffing through CareerStaff Unlimited, Inc.

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