ST. LOUIS, MO, March 2, 2004 - RehabCare Group, Inc. (NYSE:RHB) today announced the acquisition of the market-leading manager of hospital-based specialty care units in the State of California, American VitalCare, Inc. and its sister company, Managed Alternative Care, Inc., (collectively known as VitalCare). RehabCare will acquire 100 percent of VitalCare's equity for $11 million in cash plus a $3 million subordinated note. The businesses are wholly-owned subsidiaries of Health Net, Inc. (NYSE:HNT), one of the nation's largest publicly-traded managed healthcare companies. Duff & Phelps, LLC, a national middle-market investment banking and financial advisory firm, initiated this transaction and served as exclusive financial advisor to the Health Net, Inc..

VitalCare, established in 1985, provides services for patients recovering from severe trauma injuries to the head and spinal cord, and degenerative diseases such as Amyotrophic Lateral Sclerosis and Multiple Sclerosis. Such patients require intensive medical and pre- or post-rehabilitation care that cannot be administered at home or in skilled nursing facilities, and have an average length of stay up to 120 days. VitalCare is the dominant provider of these services, managing close to 50 percent of the approximately 1,650 beds in California licensed for this type of specialty care. The Company generates approximately $14 million of revenue, and the acquisition is expected to be modestly accretive to RehabCare's earnings in 2004.

RehabCare Group, Inc., headquartered in St. Louis, MO, is a leading provider of rehabilitation program management services in over 700 hospitals, nursing homes and other long-term care facilities throughout the United States. It provides services in acute care, skilled nursing, outpatient and home health settings to fit the clinical needs of patients in a cost-effective manner. RehabCare is pleased to be included in the Russell 2000 and Standard and Poor's Small Cap 600 Indices.

Duff & Phelps, LLC, a Chicago-based investment banking and financial advisory firm, provides independent financial analysis and advice, including fairness opinions, for both public and privately-held companies in transactions involving corporate acquisitions and divestitures, ESOPs, going private transactions, related party transactions, recapitalizations and restructurings, and exchange offers.