Kindred Healthcare Supports the Flag and the Sacrifices It Represents

LOUISVILLE, Ky.--(Business Wire)--
Kindred Healthcare (NYSE: KND) is proud of its history of supporting our
employees and their families who have served our country through military
service. We are sincerely sorry that one incident between two employees gave the
perception that we do not respect the flag or the sacrifice it represents.

It is neither the policy of Kindred Healthcare nor Kindred Hospital Mansfield to
restrict the rights of our employees and their expressions of patriotism. This
is not in keeping with the spirit and culture of Kindred Healthcare. We
routinely celebrate the blessings bestowed upon us by honoring our veterans and
active military through a variety of benefits and service programs. The truth is
the Mansfield hospital situation has not been described accurately or in its
entirety. In fact, both employees involved in the situation have family members
who have served in the military.

This issue was simply a dispute between two employees who shared a small
workspace, one of whom removed the flag because of its size. It`s important to
note that hospital management was not involved in the decision to remove the
flag and has since worked with both employees to resolve the situation. We
support our employees` first amendment rights and have invited the employee to
rehang her flag.

"We are sorry that this incident occurred," said Benjamin A. Breier, President
of Kindred`s Hospital Division. "We organize many activities and programs
throughout the year to honor our veterans. This year, in addition to our annual
Independence Day celebrations, we will proudly distribute American flags that
our employees can display in their workspaces. Our 55,000 hard-working employees
serve our patients and residents daily with innumerable acts of kindness and
compassion. We value and respect each of our employees and their commitment to
high quality care. We look forward to continuing to serve our communities and
our country."

About Kindred Healthcare

Kindred Healthcare, Inc. is a healthcare services company, based in Louisville,
Kentucky, with annual revenues of over $4 billion and approximately 54,800
employees in 40 states. At March 31, 2009, Kindred through its subsidiaries
provided healthcare services in 661 locations, including 82 long-term acute care
hospitals, 228 skilled nursing centers and a contract rehabilitation services
business, Peoplefirst rehabilitation services, which served 351 non-affiliated
facilities. Ranked first in Fortune magazine`s Most Admired Companies "Health
Care: Medical Facilities" category, Kindred`s mission is to promote healing,
provide hope, preserve dignity and produce value for each patient, resident,
family member, customer, employee and shareholder we serve. For more
information, go to www.kindredhealthcare.com.

Kindred Healthcare
Susan E. Moss, 502-596-7296
Vice President of Corporate Communications

Copyright Business Wire 2009