Matria Executes Microsoft HealthVault Solution Provider Agreement

MARIETTA, Ga.--(Business Wire)--Matria Healthcare, Inc. (NASDAQ:MATR) announced today that the
Company and Microsoft Corporation (NASDAQ:MSFT) have formalized their
relationship through the execution of the Microsoft HealthVault
Solution Provider agreement. The Company previously announced its
strategic relationship with Microsoft to support HealthVault,
Microsoft's internet-based health platform. Launched in October, 2007,
Microsoft HealthVault is a software and services platform aimed at
helping people better manage their health information. Through this
agreement, Matria will collaborate with Microsoft to use HealthVault
technology with Matria's existing products and services, as well as
seek to offer new services that are compatible with HealthVault users'
accounts.

"Healthvault is a unique platform that facilitates technology
interoperability and health information exchange for the consumer,"
said Ron Loeppke, M.D., Chief Strategic Officer of Matria Healthcare.
"HealthVault has been developed and supported by Microsoft, a company
known for its institutional resources that make their products and
services sustainable and its worldwide brand that confirms their
reliability."

"With Matria's leadership position in the health enhancement
industry, Matria is in an excellent position to leverage the
HealthVault solution across their broad product line to create leading
edge solutions for their clients," said James Mault, M.D., Director
for the Health Solutions Group at Microsoft. "We are enthusiastic
about our relationship with Matria and look forward to working
together to provide innovative offerings that will empower both the
consumer and the provider in enabling improved health, productivity
and the quality of care of the individual."

ABOUT MATRIA HEALTHCARE

Matria Healthcare is a leading provider of integrated
comprehensive health enhancement programs to health plans, employers
and government agencies. Matria is dedicated to developing better
educated, motivated and self-enabled healthcare consumers and
supporting clinicians in managing the care of their patients. The
Company manages major chronic diseases and episodic conditions
including diabetes, congestive heart failure, coronary artery disease,
asthma, chronic obstructive pulmonary disease, high-risk obstetrics,
cancer, musculoskeletal and chronic pain, depression, obesity, and
other conditions. Matria delivers programs that address wellness,
healthy living, productivity improvement and navigation of the
healthcare system, and provides case management of acute and
catastrophic conditions. Headquartered in Marietta, Georgia, Matria
operates through nearly 50 offices around the United States. More
information about Matria can be found online at www.matria.com.

SAFE HARBOR STATEMENT

This press release contains forward-looking statements. Such
statements include but are not limited to the Company's role in the
development of HealthVault and the integration of HealthVault
technology into Matria's existing products and services. These
statements are based on current information and belief, and are not
guarantees of future performance. Among the important factors that
could cause actual results to differ materially from those indicated
by such forward-looking statements include failure of the HealthVault
software and services platform to help people better manage their
health information, inability of the Company in integrating
HealthVault technology into the Company's existing products and
services, and the risk factors detailed from time to time in Matria's
periodic reports and registration statements filed with the Securities
and Exchange Commission, including Matria's Annual Report on Form 10-K
for the year ended December 31, 2006. By making these forward-looking
statements, Matria does not undertake to update them in any manner
except as may be required by Matria's disclosure obligations in
filings it makes with the Securities and Exchange Commission under the
federal securities laws.

Matria Healthcare, Inc.
Jeff Hinton
Sr. Vice President & Chief Financial Officer
770-767-4500

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