Needham, MA, April 9, 1999 - CareMatrix Corporation (AMEX: CMD), a fully integrated assisted living company, today announced senior management changes as it continues with its growth and expansion. Abraham D. Gosman, currently Chairman, will take on the role of Chief Executive Officer.

Additionally, Frederick Leathers, currently Chief Financial Officer for PhyMatrix Corporation and formerly Chief Financial Officer for The Mediplex Group, Inc., will become the Chief Financial Officer for CareMatrix. Fred brings to CareMatrix nearly fifteen years' experience as a financial executive in the senior care industry. The Company, which operates facilities with a resident capacity of over 7,300, expects to have a resident capacity in excess of 10,000 within the next year.

The Company's current Chief Executive Officer, Robert Kaufman, along with Michael Gosman, will now serve the Company through a newly created consulting firm. They will specialize in the areas of mergers and acquisition, financings and other expansion opportunities for CareMatrix. Andrew Gosman, formerly President, will serve as Vice Chairman of the Company. Marc Benson, formerly Chief Operating Officer, will become President of the Company and will be succeeded by Michael Zaccaro, formerly Executive Vice President-Operations.

Abraham Gosman noted, "These changes are being made as we emphasize our transition from a development/management company to an operating company. While we are disappointed that Bob is stepping down as our Chief Executive Officer, we are very pleased that he will continue to work with us as an advisor in the acquisition and financing areas as we pursue the many expansion opportunities we foresee for this industry in the near future. In addition, we are fortunate to be able to draw upon one of the most experienced operating teams in the industry."

Mr. Gosman continued, "Marc Benson, with nearly twenty years of experience in senior housing and hospitality, is one of the most respected people in the industry. He is very committed to providing the highest level of patient care to our seniors. As our President, Marc will set the standard of care for our Company, serve alongside me as our Company spokesmen, and represent the Company with the various senior organizations."

He went on to say, "Mike Zaccaro, with twenty years of industry experience, will succeed Marc as COO. Mike has been responsible for the operations of our tri-state area of New York, New Jersey and Connecticut facilities, which currently include 40 facilities for over 5,500 residents in operation or development. This is our largest market cluster and we have a dominant position in this deep and most affluent market in the country. Mike has been a driving force in helping to develop both our operational and financial models since the formation of the Company. Mike will be supported by our most recent hire, Dale Zulauf, who will serve as our Senior Vice President of Operations. Dale was most recently the President of Sunrise Healthcare Corp. and, before that, spent nine years as a Regional Vice President of Operations for Hillhaven/Vencor."

Mr. Kaufman noted, "I have truly enjoyed my time with CareMatrix, seeing it grow from the start-up stage less than three years ago to one of the premier companies in an industry that is in the midst of rapid growth. I look forward to working with the Company in my new capacity. This is an industry in the midst of change. Recent market events indicate that, despite the success of the Company, the true value of this entity is not appropriately recognized in the market. This is the right time to make these changes and Marc Benson and Mike Zaccaro are extremely well qualified for their new roles. I believe that this management team has the ability to effectively communicate the company's strategy going forward."

CareMatrix Corporation, with executive offices in Needham, Massachusetts and Palm Beach, Florida, is a leading provider of senior housing services including assisted living, 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.