Needham, MA, April 1, 1998 – CareMatrix Corporation (AMEX: CMD), a fully integrated assisted living company, today announced that Standard & Poor’s recently assigned it a single -B- plus corporate rating and a single -B- minus subordinated debt rating, reflecting the strength of the Company’s balance sheet and its growth potential in the rapidly expanding senior care industry.

Separately, the Company announced that Chancellor Senior Housing recently signed a commitment for a $200 million long-term facility financing line with Daiwa Securities. This is in addition to the $200 million line already in place with Credit Suisse First Boston. Additionally, Chancellor entered into rate lock agreements related to the majority of its fixed rate financing with Credit Suisse First Boston. With this agreement, the interest on the fixed rate borrowings, to be in place at property stabilization, will be in the 7.6-7.8% range, based on current interest rate spreads for similar facilities. The actual rate will not be determined until the permanent loans are put into place.

Robert Kaufman, Chief Executive Officer of CareMatrix, commented "We are very pleased with the rating from Standard & Poor’s. This rating reflects the strength of our balance sheet and our position in the rapidly growing senior housing market." Mr. Kaufman added, "Chancellor continues to obtain some of the best financing terms in the industry, the benefit of which is passed on to CareMatrix when the related properties convert to long-term leases. These financings help to insure the continuity of our development and reduce our exposure to interest rate increases by locking in the base rate on the Chancellor debt at today’s favorable market terms."

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.