Needham, MA, March 30, 1998 - CareMatrix Corporation (AMEX: CMD), a fully integrated assisted living company, today announced that it had finalized terms for long-term leases on two senior housing facilities, totaling 331 units, in Peoria, Arizona. These facilities provide independent, supportive independent and assisted living services in a campus-like setting. The Company is also in the process of building a 118 unit assisted living facility next to these sites.

Robert Kaufman, Chief Executive Officer of CareMatrix commented, "We are very excited about these acquisitions that accelerate our expansion into one of the fastest growing senior markets in the country. This campus development, along with our facility under construction, will allow us to serve our residents as they age in place with high quality healthcare services in a hospitality environment. We are also pleased to be expanding our relationship with Netwest Development Corporation who is our partner in all three facilities. Netwest is a recognized leader in managing senior living facilities in Arizona."

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 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.