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KINDRED HEALTHCARE BECOMES NATIONAL SPONSOR OF THE ALZHEIMER’S ASSOCIATION’S 2005 MEMORY WALK®

Louisville, KY (August 29, 2005) – In June 2005, Kindred Healthcare, Inc. (the “Company”) (NYSE: KND) became a National Sponsor for the Alzheimer’s Association’s 2005 Memory Walk®. This is the first year Kindred will be a National Sponsor for this important cause.

Memory Walk is the Alzheimer’s Association’s national fundraising event that raises awareness and funds to support local programs for people with Alzheimer's disease, their families and caregivers. Since 1989, Americans who have participated in Memory Walk have raised more than $175 million for local programs and services.

“We are proud to have Kindred Healthcare on board as a national sponsor of the 2005 Memory Walk,” said Gary Beiting, interim President and CEO of the Alzheimer’s Association. “Their support is helping the Association advance research and provide vital services to the millions of Americans affected by this dreadful disease.”

Memory Walk will take place in more than 600 communities nationwide, mainly during September and October. This annual event will bring out thousands of men, women and children as participants, volunteers and sponsors.

“We are pleased to support the Alzheimer’s Association and the important work they are doing,” said Paul J. Diaz, President and Chief Executive Officer of the Company. “Many of our nursing centers offer specialized programs for residents living with Alzheimer’s disease and other forms of dementia. Our Reflections and Passages units serve this special population with specialized programs developed in conjunction with the Alzheimer’s Association.”

Kindred Healthcare, Inc. through its subsidiaries operates hospitals, nursing centers, institutional pharmacies and a contract rehabilitation services business across the United States.

The Alzheimer’s Association, the world leader in Alzheimer research and support, is the first and largest voluntary health organization dedicated to finding prevention methods, treatments and an eventual cure for Alzheimer’s. For 25 years, the donor-supported, not-for-profit Alzheimer’s Association has provided reliable information and care consultation; created supportive services for families; increased funding for dementia research; and influenced public policy changes.

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

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