Needham, MA, April 28, 1998 - CareMatrix Corporation (AMEX: CMD), a fully integrated assisted living company, today announced record results for the first quarter ended March 31, 1998.

The Company reported net income of $3,365,190 or $0.19 per share on revenues of $29,645,703 for the three month period ended March 31, 1998. This compares to net income of $814,600 or $0.05 per share on revenues of $13,091,518 reported for the three month period ended March 31, 1997.

Robert Kaufman, Chief Executive Officer of CareMatrix commented, "We are pleased to report results that once again exceeded consensus estimates. These results were due to occupancy levels that exceeded our plan, the continued strong fill-up of senior living communities opened in late 1997, increased operating margins on existing facilities and a development pipeline of 77 facilities, representing 9,300 units, including 30 facilities and 3,600 units in construction."

During the first quarter the Company announced lease agreements for seven facilities totaling 685 units in southwestern Connecticut, four of which are currently in construction, lease agreements for two senior living communities totaling 331 units in the Phoenix, Arizona marketplace and receiving a single -B- plus corporate rating from Standard & Poor's. In addition, Chancellor Senior Housing Group, Inc., the owner of a majority of the facilities in development, received commitments for over $300 million of permanent financings and entered into forward rate lock agreements for a substantial portion of its financing commitments. These agreements allow CareMatrix to benefit from some of the lowest cost financing in the industry.

Mr. Kaufman further commented, "CareMatrix is very pleased to be ahead of its plans for the year and we remain optimistic for the remainder of the year. The lease agreements we entered into help to strengthen our presence in two of the best retirement markets in the country. Our fill-up results demonstrate the strength of our cluster market strategy. Finally, we intend to open 25 to 30 new facilities during the remainder of the year, totaling over 3,000 units. Several of these openings will be campus-style development, which allow us to offer multiple entry points for our residents. With all that we are planning for the remainder of 1998, including new facility openings, converting several managed facilities to leases and enhancing our presence in newly entered cluster markets, this will be a very exciting year for the Company."

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 and, in certain selective markets, long-term care facilities. The Company currently has 28 facilities in operation in 10 states, representing 3,069 units.

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.

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