Ridgefield Park, March 17, 2009 – Loving Care Agency, Inc., a leading provider of pediatric skilled nursing and home health aide services (“Loving Care”), today announced that it has acquired six homecare branches from Gentiva Health Services, Inc. (NASDAQ: GTIV) (“Gentiva”). The branches in three states specialize in pediatric homecare, representing more than 80% of Gentiva’s pediatric homecare operations, and also provide home health aide services. Terms were not disclosed.

The six branches provide for further expansion within Pennsylvania and additional diversification into Massachusetts and Arizona. The acquisition makes Loving Care one of the largest pediatric nursing and home health aide companies in the Country, with over $145 million in annual revenues.

Equity for the transaction was provided by Funds managed by MTS Health Investors, LLC (“MTS”), a healthcare private equity firm, and funds managed by Oaktree Capital Management, L.P. (“Oaktree”), an investment management firm, who collectively own Loving Care. Debt financing was provided by BMO Capital Markets and Siemens Financial Services, Inc.
Bob Creamer, Chief Executive Officer of Loving Care, said, “We are very pleased to add these branch operations to the growing Loving Care family. Having worked directly with these branches during my tenure at Gentiva, I know that they represent an excellent strategic fit for us as they have earned an excellent reputation among patients and referral sources and share the same commitment to quality care that is the cornerstone of Loving Care.

Kenton Rosenberry, a Senior Managing Director at MTS and director of Loving Care, added, “This transaction represents a very attractive acquisition for Loving Care, allowing further penetration in Pennsylvania, and immediately providing sizeable and reputable platforms in Massachusetts and Arizona.”

About Loving Care

Loving Care, headquartered in Ridgefield Park, New Jersey, is one of the largest providers of pediatric homecare in the Country, as well as the largest provider of home health aide services throughout New Jersey. Both of Loving Care’s services enable patients to remain in the comfort of their own homes and represent a more cost-effective alternative to facility-based care. Loving Care’s pediatric division provides skilled nursing services to medically fragile and complex children in their homes and schools. The home health aide division assists patients, most of whom are either elderly or disabled, with activities of daily living, such as bathing, dressing, walking and meal preparation. For further information, please visit www.lovingcareagency.com.

About MTS

MTS Health Investors, LLC, located in New York, is a healthcare private equity firm that makes equity investments in the buyout, recapitalization or growth financing of healthcare operating companies. MTS focuses on businesses that operate in services sectors of the healthcare industry – managed care/health insurance, providers of healthcare services, distributors of medical products and providers of outsourced services to the healthcare industry. The firm also invests in manufacturers of low-technology medical products. For further information, please visit:www.mtshealthinvestors.com.

About Oaktree

Oaktree is a premier global alternative and non-traditional investment manager with over $49 billion in assets under management as of December 31, 2008. The firm emphasizes an opportunistic, value-oriented and risk-controlled approach to investments in distressed debt, high yield and convertible bonds, specialized private equity (including power infrastructure), real estate, emerging market and Japanese securities, and mezzanine finance. Oaktree’s institutional clients include Fortune 100 companies, large public pension funds, university endowments, private foundations and high net worth individuals. Oaktree was founded in 1995 by a group of principals who have worked together since the mid-1980s. Headquartered in Los Angeles, the firm today has over 540 employees and offices in 14 cities worldwide. For further information, please visit www.oaktreecapital.com.


Caroline Luz
Owen Blicksilver Public Relations, Inc.