1
 
                                [LETTERHEAD OF]
                               ROTO-ROOTER, INC.
 
                                AUGUST 30, 1996
 
To our stockholders:
 
     As you know, Roto-Rooter's Board of Directors appointed one of its members
as a Special Committee to determine Roto-Rooter's response to the tender offer
made by Chemed Corporation to purchase all of Roto-Rooter's outstanding stock
not owned by Chemed for $41.00 per share. On August 27, 1996, the Special
Committee determined to take a neutral position with respect to Chemed's offer.
The Special Committee's conclusion was set forth in a
Solicitation/Recommendation Statement on Schedule 14D-9 (the "Schedule 14D-9")
which was filed with the Securities and Exchange Commission and mailed to
Roto-Rooter's stockholders.
 
     The Special Committee today received a written fairness opinion from its
financial advisor concluding that, subject to the conditions and limitations
stated in the opinion, the $41.00 offer price is fair to Roto-Rooter's
stockholders (other than Chemed) from a financial point of view. Enclosed with
this letter is a copy of an amendment to the Schedule 14D-9 which briefly
summarizes and sets forth a copy of the fairness opinion.
 
     The Special Committee has not changed its neutral position with respect to
the tender offer.
 
     On behalf of the Board of Directors,
 
                                            Sincerely,
 
                                            /s/ Edward L. Hutton
                                            ------------------------------------
                                            Edward L. Hutton
                                            Chairman