SOURCE: Curative Health Services

October 31, 2005 15:00 ET

Curative Health Services Engaged in Discussions With Bondholders Committee and Taking Advantage of Grace Period

NASHUA, NH -- (MARKET WIRE) -- October 31, 2005 -- Curative Health Services, Inc. (NASDAQ: CURE) (the "Company") today announced that it is engaged in discussions with an ad hoc committee of bondholders ("Ad Hoc Committee") holding approximately eighty percent of the $185.0 million aggregate principal amount of the Company's 10.75% senior notes due 2011 (the "Notes") related to the Company's financial alternatives. Bingham McCutchen LLP and Houlihan Lokey Howard & Zukin Capital have been engaged as legal counsel and financial advisor, respectively, to assist the Ad Hoc Committee in evaluating the Company's financial alternatives.

The Company has elected to use a thirty-day grace period for payment of interest due November 1, 2005 under the Notes. This decision has been implemented as a result of the ongoing discussions with the Ad Hoc Committee and will allow additional time for the Company and the Ad Hoc Committee to evaluate the Company's financial alternatives.

About Curative Health Services

Curative Health Services, Inc. is a leading provider of Specialty Infusion and Wound Care Management services.

The Specialty Infusion business, through its national footprint of Critical Care Systems branch pharmacies, provides a cost-effective alternative to hospitalization, delivering pharmaceutical products and comprehensive infusion services to pediatric and adult patients in the comfort of their own home or alternate setting. Each JCAHO accredited branch pharmacy has a local multidisciplinary team of experienced professionals who clinically manage all aspects of a patient's infusion and support needs.

Curative Discussions With Bondholders Committee

The Wound Care Management business is a leading provider of wound care services specializing in chronic wound care management. The Wound Care Management business manages, on behalf of hospital clients, a nationwide network of more than 100 Wound Care Center® programs that offer a comprehensive range of services for treatment of chronic wounds, including outpatient, inpatient, post-acute and hyperbaric oxygen therapy.

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This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. Factors that might cause such differences include, but are not limited to, risks associated with our acquisition of Critical Care Systems including, but not limited to, integration risks and costs, risks of client retention, and risks associated with the operations of the acquired business, as well as risks in our current businesses such as the substantial level of indebtedness incurred in connection with the acquisition of Critical Care Systems, the potential for termination or non-renewal of a material number of contracts, an inability to obtain new contracts, changes in government regulations relating to the Company's Specialty Infusion or Wound Care Management businesses, changes in the regulations governing third party reimbursements for the Company's services, manufacturing shortages of products sold by Curative's Specialty Infusion business, the impact of competitive products and pricing, the ability to maintain pricing arrangements with suppliers that preserve margins, the seasonality and variability of operating results, the Company's ability to implement its strategies and achieve its objectives and the other risks and uncertainties detailed in the Company's filings with the Securities and Exchange Commission. Readers of this release are referred to the Company's Annual Report on Form 10-K for the year ending December 31, 2004, and Quarterly Report on Form 10-Q for quarter ending June 30, 2005 for further discussion of these and other risk factors that could affect future results.

Contact Information

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    Sean Mahoney
    Investor Relations
    Curative Health Services/
    Critical Care Systems, Inc.
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