FOR IMMEDIATE RELEASE:



                                              Contact:  Robert N. Elkins, M.D.
                                              Chairman & CEO
                                              Marc B. Levin
                                              Executive Vice President
                                              Integrated Health Services, Inc.
                                              (410) 998-8400

                                              Anthony J. Russo, Ph.D., Ext. 202
                                              Noonan/Russo Communications, Inc.
                                              (212) 696-4455


                 INTEGRATED HEALTH SERVICES ANNOUNCES FINANCING


Owings Mills, MD, May 23, 1997 - Integrated  Health Services,  Inc. (NYSE:  IHS)
today  announced  that it has  entered  into an  agreement  to  issue  privately
$450,000,000  aggregate principal amount of its 9 1/2% senior subordinated notes
due 2007.  The  issuance  of the notes,  which is  subject to certain  customary
closing  conditions,  is  expected  to occur on May 30,  1997.  Proceeds  of the
offering  will be used to  repurchase  the  Company's  outstanding 9 5/8% Senior
Subordinated  Notes  due 2002 and 10 3/4%  Senior  Subordinated  Notes  due 2004
pursuant to the Company's  previously  announced  tender offers  therefor and to
repay outstanding indebtedness under the Company's credit facility.

The notes have not been registered under the Securities Act of 1933, as amended,
and may not be offered and sold in the United States absent  registration of the
notes under such Act or an applicable exemption from registration.

This press release shall not constitute an offer to sell or the  solicitation of
an offer to buy the notes nor shall there be any sale of these securities in any
state in which  such  offer,  solicitation  or sale would be  unlawful  prior to
registration or qualification  under the securities laws of any such state. This
press release does not constitute an offer to purchase the Company's outstanding
notes in any jurisdiction in which, or to or from any person or from whom, it is
unlawful to make such offer under applicable securities or blue sky laws.