For Immediate Release:

Company Contact            Investor Contact                             Media Contact
321-235-3150                  John Nesbett / Karen Pisciotta         Tony Herrling
inquiry@rotech.com         Lippert/Heilshorn & Associates        Burson-Marsteller
                                      321-235-3150                                 321-235-3151
                                      investor@rotech.com                      media@rotech.com

Rotech Emerges From Chapter 11
Through Spin-off from Parent Company

Leading Respiratory Care Provider Secures $275 Million Credit Facilities;
Issues $300 Million Senior Subordinated Notes

ORLANDO, Fla. - March 27, 2002 - Rotech Healthcare Inc., a leading provider of
home respiratory therapy and durable medical equipment and services, announced today
that its predecessor, Rotech Medical Corporation, has spun-off from its parent company
and emerged from Chapter 11, and that the new company will operate as an independent,
standalone entity. Rotech made the unique spin-off possible by securing $575 million in
exit financing.

Rotech Medical was a subsidiary of Integrated Health Services (IHS), a provider of post-acute care and related specialty healthcare. When IHS filed for bankruptcy in February 2000, Rotech, as a guarantor of IHS’ bank debt, voluntarily filed for Chapter 11. As part of Rotech’s plan of reorganization, which was confirmed on February 13, 2002 by the US Bankruptcy Court and which became effective on March 26, 2002, Rotech is no longer an IHS subsidiary.

“We are pleased to move beyond the constraints of Chapter 11 and continue serving our clients, setting standards of excellence for home health care, and growing our business,” said Stephen Linehan, President and Chief Executive Officer of Rotech Healthcare Inc. “We are confident that our new corporate and financial structure will provide a solid platform to advance our competitive position in the marketplace.”

In connection with the Company’s emergence from Chapter 11, a syndicate of financial institutions, led by UBS Warburg LLC and Goldman Sachs Credit Partners, L.P., have extended to Rotech Healthcare $275 million in senior secured credit facilities. The facilities include a $200 million, six-year term loan facility and a $75 million, five-year revolving credit facility. The facilities are guaranteed by substantially all the assets of Rotech Healthcare.

Rotech also announced that it has issued $300 million of 9½% Senior Subordinated Notes, due 2012. Rotech may redeem up to 35% of the notes with the net proceeds of qualified equity offerings, prior to April 1, 2005. The Company may redeem the notes, in whole or in part, at any time on or after April 1, 2007.

All of the net proceeds from the credit facilities and the Senior Subordinated Notes will be distributed to Rotech Medical’s creditors under the Company’s plan of reorganization. The revolving credit facility will be used for general corporate purposes, including working capital, acquisitions, and capital expenditures.

The Senior Subordinated Notes have not been registered under the Securities Act or under any state securities laws and unless so registered, may not be offered or sold in the United States, except pursuant to an exemption from the registration requirements of the Securities Act and applicable state securities laws.

About Rotech Healthcare
Rotech Healthcare Inc. is a leading provider of home respiratory care and durable medical equipment and services to patients with breathing disorders such as chronic obstructive pulmonary diseases (COPD). The Company provides its equipment and services in 47 states through over 600 operating centers, located principally in non-urban markets. Rotech’s local operating centers ensure that patients receive individualized care, while its nationwide coverage allows the Company to benefit from significant operating efficiencies.

Forward-looking Statements
Statements contained in this press release may contain forward-looking statements as contemplated by the 1995 Private Securities Litigation Reform Act that are based on management’s current expectations, estimates and projections. Words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “estimates,” variations of such words and similar expressions are intended to identify such forward-looking statements. Forward-looking statements are subject to known, and unknown risks and uncertainties, which could cause actual results to differ materially from those projected or implied in the forward-looking statements. Rotech Healthcare Inc. does not undertake any obligation to publicly release any revisions to any forward-looking statements to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events.