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KINDRED HEALTHCARE ANNOUNCES 28 OF ITS NURSING CENTERS ARE RECIPIENTS OF THE 2006 AHCA QUALITY AWARD

Louisville, KY (October 24, 2006) – Kindred Healthcare, Inc. (the “Company”) (NYSE: KND) today announced that 28 of its nursing centers have been named recipients of the 2006 American Health Care Association (“AHCA”) Step I Quality Award for demonstrating a strong commitment to quality improvement. A national presentation for award recipients was recently held during AHCA’s Annual Convention and Exposition in San Antonio.

There are approximately 16,000 nursing centers in the United States. There were a total of 426 applications for the 2006 Quality Awards and 104 long-term care facilities in 29 states were named as recipients. Kindred Healthcare earned the largest number of Quality Awards of any nursing home company in the country.

The following Kindred Healthcare nursing centers received the AHCA Quality Award:

Foothill Nursing and Rehabilitation Center in Glendora, California,
La Veta Healthcare Center in Orange, California,
Regency Place of Greenwood in Greenwood, Indiana,
Sellersburg Health and Rehabilitation Centre in Sellersburg, Indiana,
Harrodsburg Health Care Center in Harrodsburg, Kentucky,
Hillcrest Health Care Center in Owensboro, Kentucky,
Woodland Terrace Health Care Facility in Elizabethtown, Kentucky,
Brewer Rehab and Living Center in Brewer, Maine,
Country Rehabilitation and Nursing Center in Newburyport, Massachusetts,
Hallmark Nursing and Rehabilitation Center in New Bedford, Massachusetts,
Harrington House Nursing and Rehabilitation Center in Walpole, Massachusetts,
Ozark Mountain Regional Healthcare Center in Crane, Missouri,
Tablerock Healthcare in Kimberling City, Missouri,
Cypress Pointe Rehabilitation and Health Care Centre in Wilmington, North Carolina,
Guardian Care of Zebulon in Zebulon, North Carolina,
Chillicothe Nursing & Rehabilitation Center in Chillicothe, Ohio,
Franklin Woods Nursing and Rehabilitation Center in Columbus, Ohio,
West Lafayette Rehabilitation and Nursing Center in West Lafayette, Ohio,
Winchester Place Nursing and Rehabilitation Center in Canal Winchester, Ohio,
Wyomissing Nursing and Rehabilitation Center in Reading, Pennsylvania,
Kindred Heights Nursing and Rehabilitation Center in East Providence, Rhode Island,
Pine Meadows Healthcare and Rehabilitation Center in Bolivar, Tennessee,
Ripley Healthcare and Rehabilitation Center in Ripley, Tennessee,
Holladay Healthcare Center in Salt Lake City, Utah,
Wasatch Valley Rehabilitation in Salt Lake City, Utah,
Eastview Medical and Rehabilitation Center in Antigo, Wisconsin,
Kennedy Park Medical & Rehabilitation Center in Schofield, Wisconsin, and
Vallhaven Care Center in Neenah, Wisconsin.

“We are proud that for the second year in a row, Kindred had the highest number of quality awards of any nursing home company,” said Paul J. Diaz, President and Chief Executive Officer of the Company. “The number of awards reflects our efforts to invest in staffing and improvements at our nursing centers, as well as our ongoing quality initiatives across the country. Our employees are committed to providing high quality patient care and outstanding customer service to become the most trusted and respected provider of healthcare services in every community we serve.”

“Each of these centers received this prestigious award because of hard work and dedication,” said Lane M. Bowen, Executive Vice President and President of the Company’s Health Services Division. “They each exemplify our focus on quality care and customer service.”

About Kindred Healthcare

Kindred Healthcare, Inc. (NYSE: KND), is a Fortune 500 healthcare services company, based in Louisville, Kentucky, with annualized revenues of $4.3 billion that provides services in over 500 locations in 39 states. Kindred through its subsidiaries operates long-term acute care hospitals, skilled nursing centers, institutional pharmacies and a contract rehabilitation services business, Peoplefirst Rehabilitation Services, across the United States. Kindred’s 56,000 employees are committed to providing high quality patient care and outstanding customer service to become the most trusted and respected provider of healthcare services in every community we serve. For more information, go to www.kindredhealthcare.com.

CONTACT:
Susan E. Moss
Vice President of Corporate Communications
(502) 596-7296

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