For Immediate Release SALIX VENTURES ANNOUNCES INVESTMENT IN PATIENT CARE Andover, Massachusetts (October 11, 2002) -- Salix Ventures announced today a $4.0 million investment as part of a $47.0 million Series A Redeemable Preferred Stock and Common Stock financing to purchase Patient Care, Inc. from its parent company, Chemed Corporation (NYSE: CHE). Chris Grant, a General Partner of Salix Ventures, will join Patient Care's Board of Directors. Patient Care is a $140 million provider of home health care services, operating primarily in the New York tri-state region. Patient Care's two business units, outsourced staffing services and direct patient care services, are provided by either skilled nurses, who deliver traditional nursing care in the home setting, or caregivers, who assist with the daily living activities in patients' homes or health care facilities. Several health care trends are converging which make the home health care market an attractive industry. These include mounting pressure to contain spending at a time when the elderly population is growing rapidly, an increasing desire by consumers to avoid long-term institutional care settings and health care technology improvements that allow providers to accommodate these desires. These factors and others contribute to the 10% annual industry growth forecasted through 2005. Dr. Arthur Stratton, the Chairman and Chief Executive Officer, has extensive experience in the acute and subacute care industries. In the early 1980's, Dr. Stratton co-founded Healthfirst, Inc., which operated freestanding medical clinics. In 1989, Dr. Stratton founded and became Chairman and CEO of Mariner Health Group, Inc. At the time Mariner Health was sold to Paragon Health Network in 1998, it owned and operated multiple health care service businesses in 38 states and over 800 sites, employed over 18,000 people and generated revenues in excess of $700 million. "Having served on Mariner Health Group's board of directors from 1991-1998, I'm very familiar with Art Stratton and we are very pleased to invest again with such an experienced and successful CEO," stated Chris Grant of Salix. He continued, "Patient Care is an excellent platform for Art to build another leading service business. He and his team understand senior care markets and the evolution taking place as home care replaces institutional settings." Other investors participating in the purchase of Patient Care include Schroder Ventures Life Sciences, Oak Investment Partners, Prospect Venture Partners and Dr. Arthur Stratton. About Salix Ventures Salix Ventures manages two venture capital partnerships with approximately $180 million in capital commitments from limited partners. Salix invests primarily in early-stage healthcare services and healthcare information technology companies. With offices in Andover, Nashville and San Francisco, Salix Ventures assists companies across the country through all stages of development. Return to News & Events | Return Home