Horizon Health Corporation Announces Increased $125 Million Credit Facility; New Facility Expandable To $175 Million

Horizon Health Corporation (NASDAQ/NM:HORC) announced
today that it has amended, and extended the maturity of, its revolving
credit facility agreement. The credit facility, as amended, is now a
$125 million revolving credit facility that, at the request of Horizon
Health, can be increased to a $175 million revolving credit facility,
subject to satisfaction of certain conditions. The amended credit
facility will provide the Company more flexibility in executing its
acquisition strategy while reducing the cost of the facility. In
connection with this amendment, Wachovia Bank, National Association
and Amegy Bank, National Association were added to the Company's
existing banks, which include JPMorgan Chase Bank (which also serves
as agent); Bank of America, National Association; Wells Fargo Bank,
National Association; and Key Bank, National Association. The facility
is available for acquisitions and working capital purposes. The
revolving credit facility has a term until May 31, 2010.
   Mr. Ken Newman, Chairman and Chief Executive Officer of Horizon
Health Corporation, said, "The Company appreciates the continued
support of its existing bank group and the new relationships with
Wachovia and Amegy. This will enhance the Company's ability to pursue
growth through acquisitions."
   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.