Sun Healthcare Group Announces Gwyn As New President Of SunDance Rehabilitation Corporation

IRVINE, CA -- Sun Healthcare Group, Inc. (NASDAQ: SUNH) today announced the selection of Susan E. Gwyn as president of SunDance Rehabilitation Corporation, a subsidiary of Sun Healthcare Group, Inc. SunDance is one of the nation’s leading contract therapy companies and employs physical, occupational and speech therapists in more than 380 locations.

Gwyn currently serves as senior vice-president of Rehabilitation Services for Harborside Healthcare Corporation, headquartered in Boston, Mass. Sun announced in Oct. 2006 its intent to acquire Harborside which operates 75 long-term care centers in ten states. It is anticipated Gwyn would join SunDance as president upon the expected acquisition of Harborside.

Prior to Harborside, Gwyn served in regional and senior-level positions for nine years for Prism Rehab Systems, a provider of contract rehabilitation and management services. Prior to Prism, Gwyn worked for a not-for-profit organization that provided services to pediatric and adult populations.

“Sue brings proven experience in managing multiple business platforms and delivering therapy services to long-term care residents and short-term stay patients in the healthcare continuum,” said Bill Mathies, president and chief operating officer for SunBridge Healthcare Corporation and SHG Services, Inc. “We see her providing the leadership necessary to continue our focus on being a premier provider of rehabilitation services,” Mathies continued.


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“The opportunity to partner with the rehabilitation professionals and management teams from Harborside and SunDance will accelerate our service excellence and create additional value for our patients, residents, families, employees, therapists and other key stakeholders,” said Gwyn.

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 long-term and postacute care 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.

Statements made in this release that are not historical facts are “forward-looking” statements (as defined in the Private Securities Litigation Reform Act of 1995) that involve risks and uncertainties and are subject to change at any time. These forward-looking statements may include, but are not limited to, statements containing words such as “anticipate,” “believe,” “plan,” “estimate,” “expect,” “hope,” “intend,” “may” and similar expressions. Factors that could cause actual results to differ are identified in the public filings made by the company with the Securities and Exchange Commission and include changes in Medicare and Medicaid reimbursements; potential liability for losses not covered by, or in excess of, our insurance; the effects of government regulations and investigations; our ability to generate cash flow sufficient to operate our business; our ability to complete the acquisition of Harborside Healthcare Corporation and integrate its operations; increasing labor costs and the shortage of qualified healthcare personnel; and our ability to receive increases in reimbursement rates from government payors to cover increased costs. More information on factors that could affect our business and financial results are included in our public filings made with the Securities and Exchange Commission, including our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, copies of which are available on Sun’s web site, www.sunh.com.

The forward-looking statements involve known and unknown risks, uncertainties and other factors that are, in some cases, beyond our control. We caution investors that any forward-looking statements made by Sun are not guarantees of future performance. We disclaim any obligation to update any such factors or to announce publicly the results of any revisions to any of the forward-looking statements to reflect future events or developments.

Any documents filed by Sun with the SEC may be obtained free of charge at the SEC’s web site at www.sec.gov. In addition, investors and stockholders of Sun may obtain free copies of the documents filed with the SEC by contacting Sun’s investor relations department at (505) 468-2341 (TDD users, please call (505) 468-4458) or by sending a written request to Investor Relations, Sun Healthcare Group, Inc., 101 Sun Avenue N.E., Albuquerque, N.M. 87109. You may also read and copy any reports, statements and other information filed by Sun with the SEC at the SEC public reference room at Room 1580, 100 F Street, N.E., Washington, D.C. 20549. Please call the SEC at (800) SEC-0330 or visit the SEC’s web site for further information on its public reference room.