Believes Enhabit's Shares Do Not Reflect its Intrinsic Value or Strategic Potential

Has Nominated Seven Highly Qualified Independent Directors

Believes AREX Slate Would Provide Board With Sorely Needed Home Health and Hospice Expertise

NEW YORK, May 09, 2024 (GLOBE NEWSWIRE) -- AREX Capital Management, LP ("AREX Capital Management" or "we"), together with its affiliates, the owners of approximately 4.8% of the shares of Enhabit, Inc. (NYSE:EHAB) (the "Company" or "Enhabit"), today issued the below statement expressing its disappointment in the conclusion of Enhabit's strategic review.

"We are disappointed that Enhabit's strategic review process has concluded without a sale of the Company. We do not believe that this failure reflects Enhabit's intrinsic value or strategic potential. Rather, this failure lies with Enhabit's Board. In March, we nominated a slate of seven highly qualified candidates to stand for election at the 2024 Annual Meeting. We chose not to publicly disclose our nomination to avoid disrupting the strategic review process to the detriment of shareholders, but clearly our hope that this Board might finally deliver a positive result for its shareholders was wishful thinking.

We believe that Enhabit's lackluster operating performance relative to peers over the past two years plainly demonstrates that the Board urgently needs the deep operational expertise in home health and hospice that the AREX Slate would bring. The AREX Slate is eager to begin the work of driving improvement at Enhabit and maximizing value for all shareholders."