Irvine, Calif. (Sept. 22, 2005) - Sun Healthcare Group, Inc. (NASDAQ NM: SUNH) announced today that 14 percent of its skilled nursing facilities operated by SunBridge Healthcare Corporation were awarded the prestigious American Healthcare Association (AHCA) Quality Award. Twelve of the company’s 85 skilled nursing facilities and one assisted living facility were recipients of the Step I Award which will be presented at the AHCA’s Annual Convention and Exposition in Las Vegas, Nev. on Oct. 19, 2005.
     Quality Award applicants are evaluated based on criteria adopted from the Malcolm Baldrige National Quality Award. Step I Award applicants are assessed on their ability to develop a profile of their mission, services, environment, resources and basic ability to initiate improvement and measure results. As facilities work through the development process that dictate the awards, facilities gain knowledge which helps them better serve their residents and customers.
     "This recognition validates the caring and passion of our facility teams in their pursuit of improving the resident care services delivered to their customers," said Bill Mathies, president of SunBridge. "I am extremely proud of our employees and congratulate each team on this achievement."
     Facilities recognized with the award are:
SunBridge Care and Rehabilitation for Muscle Shoals (Muscle Shoals, Ala.) SunBridge Brittany Care Center, (Carmichael, Calif.)
SunBridge Care Center for Kingsburg, (Kingsburg, Calif.)
SunBridge Care and Rehabilitation for McCall, (McCall, Idaho)
SunBridge Glenwood Care Rehabilitation Center, (Lowell, Mass.)
Langdon Place of Nashua, Nashua, (Nashua, N.H.)
SunBridge Care and Rehabilitation for Exeter, (Exeter, N.H.)
SunBridge Care and Rehabilitation for Siler City, (Siler City, N.C)
SunBridge Care and Rehabilitation for Mount Olive, (Mount Olive, N.C.)
SunBridge Care and Rehabilitation Hillside, (Kingsport, Tenn.)
SunBridge Care and Rehabilitation for Maynardville, (Maynardville, Tenn.)
SunBridge Care and Rehabilitation for Glenville, (Glenville, W.Va.)
SunBridge Care and Rehabilitation for Putnam, (Hurricane, W.Va.)

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.