Rotech Reports First Quarter Results After Delay

ORLANDO, Fla.–After delaying the release of its first quarter
financial results in May, last week Rotech Healthcare reported a
net loss of $3 million for the first quarter of 2005. For the same
quarter last year, the respiratory and DME provider reported net
earnings of $9.1 million.

Net revenues for the first quarter, which ended March 31, were
$123.3 million versus net revenues of $133 million in 2004.

After emerging from bankruptcy in 2003, Rotech announced earlier
this year that it now has a “competitive cost structure in the
marketplace” and is shifting its focus from turnaround activities
to growing revenue and patient care.

“Significant time and investment has been, and will continue to
be made in re-establishing growth and refocusing the company’s
culture towards patient care. The year has started well with six
successive months of increases in the core oxygen patient count,”
said company President and CEO Philip L. Carter. Because of this
growth, Carter said he expects to report higher revenue in the
second quarter of 2005, despite oxygen reimbursement reductions of
about 9 percent in April.