Needham, MA, January 11, 1999 – CareMatrix Corporation (AMEX: CMD), a fully integrated assisted living company, today announced that it has begun construction of Lasell Village, a 162 unit senior continuing care retirement community on nine acres of the Lasell College campus in Newton, Massachusetts.

Lasell Village, a unique living and learning retirement community, will provide senior care options in combination with continued education. The residents of the village will be invited to participate in traditional classes at Lasell College or they may choose an educational program that has been developed specifically to suit their own interest.

The educational program will be developed by Dr. Paula Panchuck, appointed academic dean for Lasell Village. Dr. Panchuck was former interim dean of academic affairs and professor of education at the college. There will be a broad choice of programs that will be individualized to each resident, with his or her own "learning plan."

Depending on the residents’ interest, there will be courses in the arts, public service, physical fitness and political work.

Andrew D. Gosman, President of CareMatrix Corporation stated, "This is a whole new concept of the continuing care community designed with an educational focus, and it’s the first time that a college appointed a dean to oversee an academic program for a retirement community. This educational affiliation with Lasell College will be an integral part of our residents’ daily lives."

Mr. Gosman added, "It’s consistent with our Company’s campus strategy in offering a continuum of care so that residents can remain in the same community for a longer period of time. The Company will, on a continuing basis and in conjunction with strategic sponsors, seek alliances with strong affinity groups to expand our campus development program."

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Dr. Paula Panchuck said, "I’m excited to be named as dean of Lasell Village. The program that we will develop here will break new ground, both in the area of higher education and in personal fulfillment for those in the senior generation."

CareMatrix Corporation is a leading provider of senior housing services, including assisted living, independent, supportive independent living and specialized programs for people with Alzheimer’s disease.

This release contains forward-looking statements regarding the Company’s future plans, operations and prospects. The Company’s actual results could differ materially from the results anticipated in these forward looking statements as a result of uncertainties, including risks relating to demand, pricing, competition, construction, and other factors identified in the Company’s filings with the Securities and Exchange Commission.

EDITOR’S NOTE: This release is available on the Internet at http://www.carematrix.com.

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