Needham, MA, May 4, 1999 - CareMatrix Corporation, (NASDAQ:CMDC) a fully integrated assisted living company, today announced results for the three months ended March 31, 1999.

& The Company reported net earnings of $5,895,841 or $0.32 per share on revenues of $50,717,834 for the three month period ended March 31, 1999. This compares to net earnings of $3,365,190 or $0.19 per share on revenues of $29,645,703 for the three month period ended March 31, 1998.

Abraham D. Gosman, Chairman and Chief Executive Officer of CareMatrix commented, "We are pleased with our first quarter results, as well as with our significant growth during the period. These results were due to strong occupancy levels at our stabilized facilities and increased operating margins on existing facilities, as well as the strength of our development pipeline. The occupancy rate at our stabilized facilities is 93%. Our operating margins for our stabilized assisted living facilities are currently at 40.0% compared to 39.7% in the fourth quarter of 1998.

During the past six months there have been 19 openings comprising 2,100 units. We increased the number of facilities in operation to 60 with a resident capacity in excess of 7,300, compared to 28 facilities with 3,100 units at the end of first quarter in 1998."

Mr. Gosman added, "The past few months have been very significant for the Company. We continue to grow through internal development as we fill in our existing market clusters. Currently, we have a development pipeline of 71 facilities, representing over 11,000 units. This includes 22 facilities with 2,400 units currently in construction. Our de novo growth along with our intention to capitalize on acquisition opportunities should reinforce our position as one of the leaders of the industry."

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.