Needham, MA, February 24, 1997 -- CareMatrix Corporation (AMEX: CMD) initiated plans for five facilities representing 766 units at a total cost of nearly $90 million. The Company announced today that construction has recently begun on two assisted living facilities located in Jenson Beach, Florida and Yuma, Arizona, totaling 288 units. In addition, land acquisitions were completed for three facilities, located in Avon and Woodbridge, Connecticut and Park Ridge, New Jersey, which will accommodate 298 assisted and Alzheimer's units and 180 skilled nursing beds. Construction on these facilities is expected to commence within thirty days. These facilities represent estimated aggregate project costs of nearly $90 million.

"We are pleased to be proceeding on these assisted living projects totaling 766 units within our target markets," remarked Robert M. Kaufman, President of CareMatrix Corporation. "These projects are in line with our previously announced expansion plans. We expect these facilities to be operational in late 1997 and early 1998. We are continuing our growth plans through both internal development and strategic acquisitions."

Kaufman noted, "As recently reported, the Company exceeded analysts' estimates for both revenue and results per share for the fourth quarter of 1996. We remain comfortable with analysts' estimates of profitability for both the first quarter and the full year. The Company currently has 43 facilities under development representing in excess of 5,000 units."

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.


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.