Article: Med Diversified Announces Confirmation of Plan of Liquidation; Shares to Be Cancelled Upon Completion of Asset Sale.

ANDOVER, Mass. -- Med Diversified, Inc., (PINK SHEETS: MDDVQ; "Med"), today announced that the U.S. Bankruptcy Court for the Eastern District of New York (the "Bankruptcy Court") has confirmed Med's Second Amended Plan of Liquidation ("the Plan") by order dated September 10, 2004. The Plan will become effective on September 17, 2004. In the event it does not become effective on such date, the Company will make a further announcement upon the actual date of effectiveness.

As of the Plan's effective date, a designated officer will assume corporate governance duties and possess the powers and authority of the board of directors and the shareholders of Med.

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