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Sun Healthcare Group, Inc. Subsidiary
Acquires Operations of SingleSource Staffing and
Goddard Healthcare Consulting, Inc.

Contact: Media and Investor Inquiries (505) 468-4582

      Irvine, Calif. (April. 4, 2005) - CareerStaff Unlimited, Inc., a wholly-owned healthcare staffing subsidiary of Sun Healthcare Group, Inc. (NASDAQ: SUNH), today announced the acquisition of the operations of SingleSource Staffing and Goddard Healthcare Consulting, Inc. Both acquisitions were effective April 1, 2005. Revenues in 2004 for these two operations were approximately $3.2 million. Terms of the deals were undisclosed.
      SingleSource Staffing is located in San Antonio, Texas, and provides temporary, travel and permanent employment opportunities for therapists and nursing professionals. Goddard Healthcare is headquartered in Dallas, Texas, with a national presence endorsed by major healthcare systems, and offers permanent placement services for physicians, nursing and allied professionals. Richard Peranton, president of CareerStaff Unlimited, Inc. said, "These acquisitions will position and strengthen CareerStaff’s ability to be extremely competitive within the healthcare staffing arena, while recruiting and providing highly qualified professionals to healthcare facilities throughout the nation."
      As one of the fastest-growing healthcare staffing companies in the United States, CareerStaff offers numerous options for a variety of healthcare professionals and facilities. These acquisitions will now enable CareerStaff to recruit physicians for established hospital clients. "These acquisitions are well-regarded operations in their respective marketplaces and are very much in alignment with CareerStaff’s strategic plan," Peranton said.

About Sun Healthcare Group, Inc.
      Sun Healthcare Group, Inc., with executive offices located in Irvine, California, owns SunBridge Healthcare Corporation and other affiliated companies that operate long-term and postacute care facilities in many states. In addition, the Sun Healthcare Group family of companies provides therapy through SunDance Rehabilitation Corporation, medical staffing through CareerStaff Unlimited, Inc., home care through SunPlus Home Health Services, Inc., and medical laboratory and mobile radiology services through SunAlliance Healthcare Services, Inc.

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      Sun Healthcare Group, Inc., with executive offices located in Irvine, California, owns SunBridge Healthcare Corporation and other affiliated companies that operate long-term and postacute care facilities in many states. In addition, the Sun Healthcare Group family of companies provides therapy through SunDance Rehabilitation Corporation, medical staffing through CareerStaff Unlimited, Inc., home care through SunPlus Home Health Services, Inc., and medical laboratory and mobile radiology services through SunAlliance Healthcare Services, Inc.