Kindred Healthcare, Inc. (the “Company” or “Kindred”) (NYSE:KND) today announced that its subsidiary has acquired Homecare Advantage, Inc. (“Homecare Advantage”) for a purchase price of approximately $2 million in cash. Homecare Advantage is a high-quality provider of home health services which operates one location in the Los Angeles, California market and provides services in Los Angeles and Orange counties. Homecare Advantage currently generates annualized revenues of approximately $2.5 million. The Homecare Advantage location will allow Kindred to expand its service area and operations in the Los Angeles market, which currently includes one nursing and rehabilitation center, nine transitional care hospitals, one hospital-based sub-acute unit, three home healthcare locations and, through its RehabCare division, three hospital-based acute rehabilitation units. The Company financed the transaction with operating cash flows and proceeds from its revolving credit facility. Homecare Advantage had no outstanding long-term debt at closing. Paul J. Diaz, Chief Executive Officer of the Company, commented that “Homecare Advantage will allow us to continue expanding our continuum of post-acute services in our key Los Angeles integrated care market enabling us to better “Continue the Care” for our patients throughout a post-acute episode. We look forward to finding additional opportunities to expand our Homecare and Hospice services in 2013. We believe that the further expansion of our continuum of post-acute care services in our key integrated care markets supports the growing interest among patients, physicians, hospital systems and public and private payors for high-quality, patient-centered integrated care.” About Kindred Healthcare Kindred Healthcare, Inc., a top-125 private employer in the United States, is a FORTUNE 500 healthcare services company based in Louisville, Kentucky with annual revenues of $6 billion and approximately 78,000 employees in 46 states. At September 30, 2012, Kindred through its subsidiaries provided healthcare services in 2,212 locations, including 117 transitional care hospitals, six inpatient rehabilitation hospitals, 224 nursing and rehabilitation centers, 27 sub-acute units, 102 hospice, home care and private duty locations, 104 inpatient rehabilitation units (hospital-based) and a contract rehabilitation services business, RehabCare, which served 1,632 non-affiliated facilities. Ranked as one of Fortune magazine’s Most Admired Healthcare Companies for four years in a row, Kindred’s mission is to promote healing, provide hope, preserve dignity and produce value for each patient, resident, family member, customer, employee and shareholder we serve. For more information, go to www.kindredhealthcare.com.