Date: Thu, 18 Dec 1997 18:51:20 GMT Server: Apache/1.1.1 Content-type: text/html Content-length: 3338 Last-modified: Sat, 17 Aug 1996 01:23:14 GMT NEW $100 MILLION CREDIT FACILITY WITH BANKERS TRUST
CONTACT: -or- INVESTOR RELATIONS COUNSEL
Robert Fine, President Linda Latman (212) 836-9609
Gene Berger, Exec. Vice President
Transworld Home HealthCare, Inc.
(908) 530-1144
FOR IMMEDIATE RELEASE

TRANSWORLD HOME HEALTHCARE ANNOUNCES NEW $100 MILLION CREDIT FACILITY WITH BANKERS TRUST

Completes Hyperion Partners II L.P. Equity Investment Red Bank, New Jersey - August 1, 1996 - Transworld Home HealthCare, Inc. (NASDAQ National Market:TWHH, TWHHW) today announced that it has completed a new $100 million senior credit facility, underwritten by Bankers Trust who is acting as Agent Bank. This new facility replaces the Company's former $35 million credit facility. In connection with the repayment of the former credit facility, Transworld will record a one-time, non-cash, after-tax, extraordinary charge of approximately $1.5 million, in the Company's fiscal third quarter, relating to the write-off of the deferred financing costs associated with the former facility.

The Company also noted that the previously announced Unit Purchase Agreement with Hyperion Partners II L.P. ("HPII") was completed concurrently with the closing of the senior credit facility. HPII has now made a total equity investment in Transworld of $39.6 million and now owns 4.4 million restricted shares of Transworld common stock and 3 million five year, non-callable warrants, each of which is convertible into one share of Transworld restricted common stock at an exercise price of $12.45 per share. Additionally, the Company has repaid the $10 million subordinated loan made to it by HPII in January 1996.

Commenting, Robert Fine, Transworld's President noted, "Our new expanded credit facility provides the Company with financial resources at favorable costs and terms with significantly more flexibility than the facility it replaces. This $100 million facility, combined with almost $70 million in shareholder equity, gives Transworld the financial strength and banking partnership to reinvigorate our growth and acquisition activities."

Transworld Home HealthCare, Inc. is a leading regional provider of a broad range of alternate site healthcare services and products, including specialized mail order pharmaceuticals and medical supplies; home medical equipment; patient services, including nursing and para-professional services and radiation therapy; respiratory therapy; and infusion therapy. Transworld facilities are located in the New York Metropolitan area, New Jersey, Baltimore, Philadelphia and Orlando, Melbourne and Jacksonville, Florida. In addition, the Company's specialized mail order pharmacy and medical supplies operations provide products to patients nationwide.


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