Horizon Health Announces Management Changes

Horizon Health Corporation (NASDAQ:HORC) today announced
a restructuring of certain management positions within the Company.
   Effective July 21, 2006, Ken Newman, Chairman and Chief Executive
Officer of the Company, will assume the additional title of President
of the Company. David K. White, Ph.D., currently President and Chief
Operating Officer, will become President of the Company's contract
management services group. In his new position, Dr. White will have
direct responsibility for the behavioral health and physical
rehabilitation contract services as well as the Company's employee
assistance program services group. The hospital services group, which
consists of owned behavioral health facilities, will report directly
to Mr. Newman.
   Commenting on the management changes, Mr. Newman said, "The
Company believes that these reporting changes will allow senior
management to more effectively focus its time during this very
important transition period. Dave White will be in charge of our
contract management services, an area in which he has extensive
experience and expertise and a part of our company that is undergoing
significant challenges related to regulatory and reimbursement
changes. I will assume direct oversight of our owned facilities, and I
will be more involved in the management of day-to-day business
operations. We are dividing the duties that were previously the
responsibility of one individual in order to more effectively
concentrate involvement by senior management on our two core
businesses."
   Mr. Newman also said, "When the Board asked in 2003 that I return
to the Company from retirement after the sudden death of Jim McAtee,
our former Chief Executive Officer, I was charged with developing a
more growth oriented strategy for the Company and with putting in
place the management team necessary to implement that strategy. I
believe we now have in place a well-defined, long-term growth
strategy. The Board of Directors has agreed with my recommendation
that we should now begin the process of identifying a Chief Executive
Officer to execute this growth strategy. We will consider both
internal and external candidates."
   Horizon Health is an owner of behavioral healthcare facilities and
a leading manager of clinical services for acute care hospitals and
employers.

   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. Numerous factors as
outlined in the SEC Report filed by the Company could cause actual
results to differ materially from those in any such forward-looking
statements. 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.