Needham, MA, February 12, 1997 -- CareMatrix Corporation, (AMEX: CMD), a fully integrated assisted living company, today announced results for the fourth quarter and year-ended December 31, 1996.

The Company reported a loss of $0.03 per share for the quarter, which eclipsed analysts' estimates of a loss of $0.06 to $0.08. The Company stated it was pleased with the progress it has made and the ability to narrow its loss and fully expects to become profitable in the first quarter of 1997.

The Company results are for the fourth quarter of 1996 as well as pro forma and actual results for the year ended December 31, 1996. Pro forma results assume that the reverse merger with The Standish Care Company and the secondary offering for the sale of common stock had been effective January 1, 1996. The reverse merger between the Company and The Standish Care Company was completed on October 4, 1996, followed on October 24, 1996 by a secondary offering of 6,250,000 shares of common stock resulting in net proceeds of $88,125,000.

Revenues for the fourth quarter (which include the consolidated results of CareMatrix and Standish) were $8,649,170 compared to $3,685,812 on a pro forma basis for the third quarter of the year. The net loss was $485,394 or $0.03 per share for the quarter compared to a pro forma loss of $1,271,126 or $0.07 per share for the third quarter.

On a pro forma basis, revenues for the year were $18,243,403. The pro forma net loss and loss per share for the year were $5,649,434 and ($0.33), respectively. Actual CareMatrix revenues were $12,907,445 for the year, with a loss and loss per share of $6,645,614 and ($0.59), respectively.

"We are very pleased with the results for the fourth quarter, which is the first quarter that includes the merger of the Company and Standish," remarked Robert M. Kaufman, President of CareMatrix Corporation. "We remain very optimistic about our growth and profitability prospects for 1997 and are comfortable with analysts' estimates of profitability for the year. We currently have 43 facilities under development totaling 5,094 units, including nine facilities in construction. In addition, we continue to aggressively fill in our four existing cluster markets along the East Coast while pursuing both development and acquisition opportunities in several new cluster markets."

CareMatrix Corporation, based in Needham, Massachusetts, develops and operates a full range of senior housing services including assisted living, supportive independent living, and specialized programs for people with Alzheimer's disease. The Company operates 23 communities, totaling 1,939 units, along the East Coast.


This release contains certain 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.

					  
                                 CAREMATRIX CORPORATION
                               Combined Financial Results
	
                                   Three Months Ended
                         December 31, 1996    September 30, 1996
                               Actual              Pro Forma

Revenues                      $8,649,170            $3,685,812
Net loss                      (485,394)            (1,271,126)
Loss per share                 ($0.03)               ($0.07)
Share outstanding1            15,057,042            17,098,184


                                Year Ended December 31, 1996
                               Actual              Pro Forma

Revenues                     $12,907,445           $18,243,403
Net loss                     (6,645,614)           (5,649,434)
Loss per share                 ($0.59)               ($0.33)
Share outstanding1           11,271,169            17,098,184		


1 Loss per share and shares outstanding for periods prior to the October
reverse merger and secondary offering are presented on a pro forma basis.