**MATRIA          HEALTHCARE, INC.**

**CHARTER          OF THE AUDIT COMMITTEE **

**OF          THE BOARD OF DIRECTORS**

**AMENDED          DECEMBER 14, 2006**

**ARTICLE          I**

**Purpose**

|   |   | Monitor                    the integrity of the Company’s financial reporting process and system of                    internal controls regarding finance and accounting                    compliance. |
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|   |   | Monitor                    the qualifications and independence of the Company’s independent auditors                    and internal auditors. |
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|   | Monitor                    the performance of the Company’s independent auditors and internal                    auditors. |
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|   |   | Provide                    an avenue of communication among the independent auditors, internal                    auditors, management and the Board of                    Directors. |
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**ARTICLE          II**

**Audit          Committee Composition and Meetings**

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**ARTICLE          III**

**Audit          Committee Authority and Responsibilities**

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**Financial          Statement and Disclosure Matters**

| 1. | Review                    and discuss with management and the independent auditor the annual                    audited                    financial statements and recommend to the Board whether the audited                    financial statements should be included in the Company’s Form                    10-K. |
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| 2. | Review                    and discuss with management and the independent auditor the Company’s                    quarterly financial statements prior to the filing of its Form                    10-Q,                    including the results of the independent auditor’s review of the quarterly                    financial statements. |
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| 3. | Review                    disclosures made to the Committee by the Company’s Chief Executive Officer                    and Chief Financial Officer regarding: (i) any significant deficiencies                    in                    the design or operation of internal controls of the Company which                    could                    adversely affect the Company’s ability to record, process, summarize and                    report financial data; and (ii) any fraud, material or otherwise,                    that                    involves management or other                    employees. |
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| 4. | Discuss                    with management and the independent auditor significant financial                    reporting issues and judgments made in connection with the preparation                    of                    the Company’s audited financial statements, including any significant                    changes in the Company’s selection or application of accounting                    principles, any major issues as to the adequacy of the Company’s internal                    controls (including issues disclosed to the Committee by the                    Company’s                    Chief Executive Officer or Chief Financial Officer) and any special                    steps                    adopted in light of material control                    deficiencies. |
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|   | (b) | All                    alternative treatments of financial information within generally                    accepted                    accounting principles that have been discussed with management,                    ramifications of the use of such alternative disclosures and                    treatments,                    and the treatment preferred by the independent                    auditor. |
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|   | (c) | Other                    material written communications between the independent auditor                    and                    management, such as any management letter or schedule of unadjusted                    differences. |
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| 6. | Discuss                    with the independent auditor the matters required to be discussed                    by                    Statement on Auditing Standards No. 61 relating to the conduct                    of the                    audit, including any |
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|   | difficulties                    encountered in the course of the audit work, any restrictions                    on the scope                    of activities or access to requested information, and any significant                    disagreements with management. |
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| 7. | Review                    and discuss with management earnings releases (including pro                    forma or non-                    GAAP information or earnings guidance) given to third                    parties. |
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**Oversight          of the Company’s Relationship with the Independent Auditor**

| 8. | Obtain                    and review a formal written statement from the independent auditor                    delineating all relationships between the independent auditors                    and the                    Company, consistent with Independence Standards Board Standard                    1, and                    review and discuss with the independent auditor, on a periodic                    basis, any                    disclosed relationships or services that may impact the objectivity                    and                    independence of the auditor. Evaluate the independence of the                    independent                    auditor, including whether the provision of permitted non-audit                    services                    is compatible with maintaining the auditor’s independence, and taking into                    account the opinions of management. |
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| 9. | Meet                    with the independent auditor prior to the audit to discuss the                    planning                    and staffing of the audit. |
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**Oversight          of the Company’s Internal Audit Function**

| 10. | Review                    the scope and effectiveness of the internal auditing                    activities. |
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| 11. | Review                    and discuss with the independent auditors the responsibilities,                    budget and                    staffing of the Company’s internal audit                    function. |
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**Compliance          Oversight Responsibilities**

| 12. | Obtain                    from the independent auditor assurance that Section 10A(b) of                    the Exchange                    Act has not been implicated. |
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| 13. | Review                    reports and disclosures of insider and affiliated party transactions,                    and                    review and approve or disapprove all proposed related-party transactions                    required to be disclosed under the rules of the Commission. Advise                    the                    Board with respect to the Company’s policies and procedures regarding                    conflicts of interest and the Company’s Code of                    Conduct. |
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| 14. | Establish                    procedures for the receipt, retention and treatment of complaints                    received                    by the Company regarding accounting, internal accounting controls                    or                    auditing matters, and the confidential, anonymous submission                    by employees                    of concerns regarding questionable accounting or auditing                    matters. |
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**Investigations**

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**Other          Audit Committee Responsibilities**

**ARTICLE          IV**

**Limitation          of Audit Committee’s Role**