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NEW YORK, May 20 /PRNewswire/ -- MMI Investments, L.P. ("MMI") today announced that it has sent a letter to the board of Chemed Corporation ("Chemed") withdrawing its nomination of director candidates for Chemed's board.

The full text of MMI's letter follows:

May 20, 2009

The Board of Directors

c/o Chairman George J. Walsh III

Chemed Corporation

2600 Chemed Center

255 East Fifth Street

Cincinnati, Ohio 45202-4726

Dear Members of the Board,

Enclosed please find a copy of MMI Investments, L.P. ("MMI") formal withdrawal letter concerning MMI's nomination of directors for election to the Chemed Corporation's ("Chemed") Board of Directors at the upcoming 2009 annual meeting. We congratulate you on a well-waged election contest. While we feel that any of our candidates would have added significant value to the Chemed board, we do feel that there have been some positive outcomes as a result of the contest.

We welcome Chemed replacing two insider directors in its own words, "in response to MMI's announcement", with two qualified and independent directors. We know both Ernie Mrozek and Tom Rice and consider them to be accomplished executives with reputations for high integrity and competency. We are pleased that our actions resulted in Ernie and Tom being nominated for election to the board.

We are also gratified by Chief Executive Officer Kevin McNamara's acknowledgement, in response to our demand for a tax-free spin-off and contrary to his prior public position, that such a transaction is easily practicable and "could create substantial shareholder value." We hope that management, the board and your financial advisors will focus on the tax free spin-off on an ongoing basis with a particular eye on the tax leakage avoided compared to other potential transactions to separate these two businesses that we both have agreed do not belong together over the long run. In citing the timing of such a transaction as the primary difference in viewpoint between Chemed and MMI, Chemed's board and management has in our view made a promise to stockholders that as markets stabilize, you will act.

MMI intends to remain a significant stockholder and hopes that we can continue to engage in constructive dialogue in the future regarding our mutual objective of seeing future value creation and maximization at Chemed.

Sincerely,

Clay Lifflander

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