Sun Healthcare Group, Inc. Announces Acquisition of Allegiance Hospice Group, Inc; Expands SolAmor Hospice Coverage

October 01, 2009, Irvine, CA

Sun Healthcare Group, Inc. (NASDAQ GM: SUNH) announced today that its subsidiary, SolAmor Hospice Corporation, has completed the acquisition of Allegiance Hospice Group, Inc. Allegiance is a privately-held, Medicare-certified hospice company headquartered in Lowell, Mass. that provides services to approximately 300 hospice patients in Maine, Mass. and New Hampshire.

“The geographic markets that Allegiance serve fit perfectly with the SolAmor markets, and the acquisition is expected to increase the size of SolAmor’s revenue by approximately 68 percent,” said Richard K. Matros chairman and chief executive officer of Sun Healthcare Group, Inc. “We are pleased with the performance of SolAmor and look forward to additional opportunities to grow in this segment,” added Matros.

With this transaction, SolAmor Hospice will provide hospice services in eight states to approximately 860 patients daily. This will result in an annualized revenue run rate of approximately $43.0 million.

About Sun Healthcare Group, Inc.

Sun Healthcare Group, Inc., with executive offices in Irvine, California, owns SunBridge Healthcare Corporation and other affiliated companies that operate healthcare centers in many states. In addition, the Sun Healthcare Group family of companies provides therapy through SunDance Rehabilitation Corporation, hospice services through SolAmor Hospice and medical staffing through CareerStaff Unlimited, Inc.

For more information, go to http://ir.sunh.com/phoenix.zhtml?c=70364&p=irol-newsArticle&ID=1337739&highlight=