Horizon Health Announces Execution of Definitive Acquisition Agreement Regarding River Park Hospital

Horizon Health Corporation (NASDAQ/NM: HORC) today
announced that it has entered into definitive agreements to acquire
substantially all the assets of River Park Hospital and the stock of
an affiliated management company located in Huntington, West Virginia.
The hospital is a 165-bed behavioral health facility offering programs
for adults, adolescents, children and families. For the fiscal year
ended December 31, 2004, River Park Hospital had consolidated net
revenues of approximately $18.6 million and for the four months ended
April 30, 2005, consolidated net revenues of approximately $6.6
million.
   The transaction is expected to close in Horizon's fourth fiscal
quarter. However, the consummation of the transaction is subject to a
number of contingencies including receipt of government approvals
including certificate of need approval. Accordingly, completion of the
transaction is subject to a number of conditions and there can be no
assurance that all such conditions will be satisfied.

   Horizon Health Corporation is a leading contract manager of
clinical services for acute care hospitals and employers and an owner
of behavioral health care facilities.

   The statements contained herein based on future expectations
rather than on historical facts are forward-looking statements as
defined under the Private Securities Litigation Reform Act of 1995
that involve a number of risks and uncertainties. Factors that could
cause actual results to differ materially from those in any such
forward-looking statements include, but are not limited to, the
ability to consummate additional acquisitions, the ability to
integrate the existing operations of the hospital on a cost-effective
basis, adverse changes in reimbursement to psychiatric hospitals by
federal and state health care programs and other third-party payors
and various other risks as outlined in Horizon's Securities and
Exchange Commission filings. There can be no assurance that statements
made in this press release relating to future events will be achieved.
The Company undertakes no obligation to update or revise
forward-looking statements to reflect changed assumptions, the
occurrence of unanticipated events or changes to future operating
results over time.