Michael T. Caracci and Cindy W. Caracci, et al. - Page 28







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              unaudited balance sheets for the fiscal year ended September 30,                                               

              1995.  The next column (PwC Valuation Adjustments) shows changes                                               

              made by Hahn.  The last column shows Hahn’s estimate of the fair                                               

              market value of each category after making his changes.                                                        

                                            Valuation of Sta-Home Agency, Inc. - Combined                                    
                                                 Adjusted Balance Sheet Approach                                             
                                                Valuation Performed as of 9/30/95                                            
                                                     Best Case Scenario                                                      
              Compiled       PwC      Fair Market Value                                                                      
              FYE        Valuation         FYE                                                                               
              9/30/95     Adjustments      9/30/95                                                                           
              Cash                                              $1,271,031        --         $1,271,031                      
              Accounts receivable                                9,115,026     ($857,786)     8,257,240                      
              Allowance for contractual adjustments             (4,205,058)      274,701     (3,930,357)                     
              Allowance for bad debts                               --          (264,444)      (264,444)                     
              Est. third-party payor settlements--Medicare       2,269,063      (295,473)     1,973,590                      
              Allowance for unsuccessful claims                     --          (543,803)      (543,803)                     
              Accounts receivable-–employees                        51,518        --             51,518                      
              Accounts receivable--other                            96,820        --             96,820                      
              Prepaid expenses                                     656,465        --            656,465                      
              Total current assets                             9,254,865        --          7,568,060                        
              Property, plant & equipment                        2,850,538        --          2,850,538                      
              Accumulated depreciation                          (1,456,464)       --         (1,456,464)                     
              Total PP&E                                       1,394,074        --          1,394,074                        



              Deposits                                               9,033        --              9,033                      
              Long-term accounts receivable–-other                  78,435       (59,610)        18,825                      
              Total other assets                                  87,468        --             27,858                        
                                                                                                                            
              Workforce-in-place                                     --        2,100,000      2,100,000                      
              Cost-shifting capacity                                 --          667,467        667,467                      
              Total intangible assets                              --           --          2,767,467                        
                                                                         --                                                  
              Total assets                                  10,736,407                   11,757,459                          
              Current portion of long-term debt                    369,967        --            369,967                      
              Accounts payable                                     750,199        --            750,199                      
              Accounts payable–-other                              165,808        --            165,808                      
              Accrued payroll                                    5,009,968        --          5,009,968                      
              Accrued payroll taxes                              1,141,431        --          1,141,431                      
              Other accrued expenses                             4,206,978        --          4,206,978                      
              Due to Medicare                                        --          201,000        201,000                      
              Total current liabilities                       11,644,351        --         11,845,351                        
                                                                                                                            
              Notes payable, long-term portion                     500,304        --            500,304                      
              Total liabilities                               12,144,655        --         12,345,655                        
              Liabilities in excess of assets                   (1,408,248)       --           (588,196)                     
                                       Valuation of Sta-Home Agency, Inc. - Combined APPENDIX C                              
                                                 Adjusted Balance Sheet Approach                                             
                                                Valuation Performed as of 9/30/95                                            
              Base Case Scenario                                                                                             
              Compiled       PwC      Fair Market Value                                                                      
              FYE        Valuation         FYE                                                                               







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