Homedco : FOUNTAIN VALLEY

Nature of Business: Provides home health care services.

Total Employees: 2,700

In Orange County: 166

Stock Listing in The Times: On NASDAQ as “Homedc”

Ticker Symbol: “HOME”

Friday’s Stock Close: $22.00

Change: Down $1.25

Analyst Review: “Homedco has done a great job refocusing its business into the more attractive sectors of home health care: respiratory care and home-infusion therapy. They have sold branches that were not profitable and have implemented a strategy to increase their per-branch revenue; currently it is approximately $1.8 million per branch. The company has enjoyed strong cash flow, which is due in part to its strong record in accounts receivable--they collect cash 10% to 20% faster than their competitors. We look for earnings per share of $1.15 for fiscal 1992. In the next two to five years, we expect Homedco’s (earnings) will grow 15% to 20% (annually).--Vivian R. Wohl, analyst Robertson Stephens & Co., San Francisco

Revenues and Profits

Dollar amounts in millions

‘87 ‘88* ’89 ’90 ’91 Revenues $170.5 $129.0 $168.0 $193.7 $222.1 Profits -$34.9 -$9.7 -$8.6 -$2.2 $10.5

* Homedco Inc. was formed Nov. 30, 1987 in a leveraged buy-out of National Medical Homecare. At that time the fiscal year end was changed to Sept., 30; 1988 earnings reported are 10-month figures.

Corporate Outlook: “Our earnings growth has had a lot to do with our ability to manage the challenges of operating in a decentralized business environment. We have facilities in 118 communities in 35 states. Since our initial public offering in May we have additional gained credibility in the marketplace. As a result, we have had major opportunities to align ourselves with key health care programs. We are also targeting strategic acquisitions. In the next two to five years, we expect to exceed $500 million in sales.” --Jeremy M. Jones, chairman/CEO

5-YEAR SUMMARY: RETURN ON STOCKHOLDER INVESTMENT

Fiscal year Nov. 30 Sept. 30 Sept. 30 Sept. 30 ending 1987 1988 1989 1990 52-Week High** N/A N/A N/A N/A 52-Week Low N/A N/A N/A N/A Book Value $0.19 ($1.07) ($2.45) ($2.93) Net Earnings (Loss) Per Share N/A ($1.31) ($1.43) ($0.48) Price-to-Earnings Ratio N/A N/A N/A N/A Average Return to Investor N/A N/A N/A N/A

Fiscal year Sept. 30 ending 1991 52-Week High** $20.75 52-Week Low $15.50 Book Value $2.83 Net Earnings (Loss) Per Share $0.80 Price-to-Earnings Ratio 23:1 Average Return to Investor 3%

** Homedco Inc. was privately held until May 2, 1991.

For information, write Homedco: 17650 Newhope St., Fountain Valley, Calif., 92708. (714) 755-5650, ext. 242

Source: Homedco Group Inc.