UPDATE: Kindred Healthcare Announces 5M Proposed Public Offerings Of Common Stock And 150,000 Tangible Equity Units

Kindred Healthcare, Inc. ("Kindred" or "the Company")

today announced that it has launched concurrent underwritten public offerings of 5,000,000 shares of Kindred's common stock and 150,000 tangible equity units. Each tangible equity unit has a stated amount of $1,000 and is comprised of a prepaid stock purchase contract and a share of mandatory redeemable preferred stock, each issued by the Company. The Company intends to grant the underwriters a 13-day over-allotment option to purchase up to an additional 22,500 tangible equity units and a 30-day over-allotment option to purchase up to an additional 750,000 shares of Kindred's common stock. Citigroup Global Markets Inc. and J.P. Morgan Securities LLC are acting as the joint book-running managers for the concurrent offerings. Kindred intends to use the net proceeds from these offerings to fund the acquisition of Gentiva Health Services, Inc. ("Gentiva") and for general corporate purposes. This press release is neither an offer to sell nor a solicitation of an offer to buy any of the common stock, tangible equity units or any other security of Kindred, nor shall there be any sale of the common stock, tangible equity units or any other security of Kindred in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. The offerings of common stock and tangible equity units (including the component prepaid stock purchase contracts and the mandatory redeemable preferred stock) are separate public offerings made pursuant to separate prospectus supplements under Kindred's effective shelf registration statement that has been filed with the Securities and Exchange Commission (the "SEC"). These offerings are not contingent on the completion of each other or upon the completion of the acquisition of Gentiva. Preliminary prospectus supplements and the accompanying prospectus related to these offerings have been filed with the SEC and are available on the SEC website, www.sec.gov. Copies of the preliminary prospectus supplements and the accompanying prospectus relating to these offerings may be obtained from Citigroup Global Markets Inc., c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717, by phone at 800-831-9146 or by email at prospectus@citi.com, and J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717 or by telephone at 866.803.9204.