OTHER NEWS - Aug. 10, 1996

Horizon / CMS Says U.S. Ends Continental Probe: The Albuquerque-based company said the Justice Department closed its investigation of its Continental Medical Systems Inc. unit without taking any action. Continental Medical became a unit of Horizon’s predecessor company, Horizon Healthcare, in July 1995. The Medicare billing practices of Continental Medical and Horizon/CMS have been the target of investigations by the Justice and Health and Human Services departments. The operator of nursing homes and rehabilitation facilities refunded $1 million in Medicare overpayments to the Justice Department on April 3. In addition to the billing inquiries, Horizon/CMS faces probes by the SEC and the New York Stock Exchange over alleged insider trading and shareholder lawsuits. Company representatives weren’t immediately available for comment.