SOURCE: Vencor International

August 26, 2005 19:31 ET

Vencor Defines Reorganization Plan for Its Subsidiary Robeworks

LOS ANGELES, CA -- (MARKET WIRE) -- August 26, 2005 -- Robeworks, a Vencor subsidiary, has announced today post chapter 11 plans. Filing chapter 11 was in the best interest of the company and its investors. In order for the company to move forward and become successful, reorganization of its old debt to a more manageable out flow of company funds was very necessary. Capital not being used for spoiled debt will be used to expedite the fulfillment of customer orders, thus our return on assets (ROA) will begin to show profit. With the settlement of old debt the company will be able to progress and focus all its time on the growth of the business. Management, staff, and investors view these actions as extremely positive and as a catalyst for the re-establishment of the company's credit and future funding. Our plan is to revamp the company's financial structure. Vencor and Robeworks team are committed to achieving these goals.

Filing Chapter 11 should not be looked at as the end but looked at as a new beginning. Just as in past history we have witnessed great companies such as Chrysler Corp., K-Mart, Interstate Bakeries Co. and Krispy Kreme file for chapter 11 and emerge successfully.

David Harkham, CEO, stated, "The road to recovery and profitability is a reality and has already begun. We will solve all the pressing hindering problems, feed on opportunities, and build on strength."

Vencor/Robeworks will come out of this and forge an alliance that will promote brand recognition, success, and profitability. Our goal will be achieved by concentrating and prioritizing our efforts. Our ultimate objective is to build on and around the core business and through acquisition of compatible companies. Once we move from the defensive position to being totally efficient and properly capitalized our future is positive and unlimited.

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The information contained in this press release, including an "forward-looking statements" within of section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 contained herein, should be reviewed in conjunction with the company's annual report, financial filings and other publicly available information regarding the company, copies of which are available from the company upon request. Such publicly available information sets forth many risks and uncertainties related to the Companies business and such statements, including risks and uncertainties related to that are unpredictable and outside of the influence and/or control of the company.

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