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Curative Health Services Receives Compliance Letter From Nasdaq

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Curative Health Services, Inc., (NASDAQ: CURE), announced today that on November 9, 2005 it received notification from the Nasdaq Stock Market indicating that for the last 30 consecutive business days, the bid price of Curative's common stock has closed below the minimum $1.00 per share requirement for continued inclusion under Marketplace Rule 4450(b)(4) (the "Bid Price Rule"). The Nasdaq notice indicated that in accordance with Marketplace Rule 4450(e)(2), Curative will be provided 180 calendar days, or until May 8, 2006, to regain compliance by having its shares close above $1.00 for a minimum of 10 consecutive trading days. If Curative has not regained compliance with the Bid Price Rule by May 8, 2006, Nasdaq will issue a letter notifying Curative that its common stock will be delisted. At that time, Curative may appeal the determination to delist its common stock to a Listings Qualifications Panel. Alternatively, Curative may apply to have its common stock transferred to The Nasdaq Capital (SmallCap) Market if it otherwise satisfies the applicable initial listing requirements for such market. If such application is approved, Curative will be afforded the remainder of this market's second 180 calendar day compliance period in order to regain compliance while on The Nasdaq Capital Market.

On November 10, 2005, Curative received a letter from The Nasdaq Stock Market indicating that for the 30 consecutive trading days preceding the date of this letter, Curative's common stock has not maintained the minimum aggregate market value of publicly held shares ("MVPHS") of $15 million required for continued inclusion under Marketplace Rule 4450(b)(3). The letter further notified Curative that, in accordance with Marketplace Rule 4450(e)(1), Curative will be provided 90 calendar days, or until February 8, 2006, to regain compliance with the MVPHS requirement. Compliance will be achieved if the MVPHS is $15 million or more for 10 consecutive trading days prior to February 8, 2006. The letter further stated that if Curative does not regain compliance with the Marketplace Rules by February 8, 2006, Nasdaq will provide notice that Curative's common stock will be delisted from the Nasdaq Stock Market. In the event of such notification, Curative may appeal the determination to delist its common stock to a Listings Qualifications Panel. Alternatively, Curative may apply to have its common stock transferred to the Nasdaq Capital Market and, if Curative submits a transfer application and pays the applicable listing fees by February 8, 2006, the initiation of delisting proceedings would be stayed pending Nasdaq staff review of the application.

Curative has determined that no specific action is warranted at this time in response to either of these letters from Nasdaq.

About Curative Health Services

Curative Health Services, Inc. is a leading provider of Specialty Infusion and Wound Care Management services.

The Specialty Infusion business, through its national footprint of Critical Care Systems branch pharmacies, provides a cost-effective alternative to hospitalization, delivering pharmaceutical products and comprehensive infusion services to pediatric and adult patients in the comfort of their own home or alternate setting. Each JCAHO accredited branch pharmacy has a local multidisciplinary team of experienced professionals who clinically manage all aspects of a patient's infusion and support needs.

The Wound Care Management business is a leading provider of wound care services specializing in chronic wound care management. The Wound Care Management business manages, on behalf of hospital clients, a nationwide network of more than 100 Wound Care Center® programs that offer a comprehensive range of services for treatment of chronic wounds, including outpatient, inpatient, post-acute and hyperbaric oxygen therapy.

For more information, visit .

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. Factors that might cause such differences include, but are not limited to, risks associated with our acquisition of Critical Care Systems including, but not limited to, integration risks and costs, risks of client retention, and risks associated with the operations of the acquired business, as well as risks in our current businesses such as the substantial level of indebtedness incurred in connection with the acquisition of Critical Care Systems, the potential for termination or non-renewal of a material number of contracts, an inability to obtain new contracts, changes in government regulations relating to the Company's Specialty Infusion or Wound Care Management businesses, changes in the regulations governing third party reimbursements for the Company's services, manufacturing shortages of products sold by Curative's Specialty Infusion business, the impact of competitive products and pricing, the ability to maintain pricing arrangements with suppliers that preserve margins, the seasonality and variability of operating results, the Company's ability to implement its strategies and achieve its objectives and the other risks and uncertainties detailed in the Company's filings with the Securities and Exchange Commission. Readers of this release are referred to the Company's Annual Report on Form 10-K for the year ending December 31, 2004, and Quarterly Report on Form 10-Q for quarter ending September 30, 2005 for further discussion of these and other risk factors that could affect future results.

Distributed by Market Wire



 
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