Needham, MA, July 22, 1999 -- CareMatrix Corporation (NASDAQ:CMDC), a fully-integrated assisted living company, announced today that its Board of Directors has instructed management to explore entering into a leveraged recapitalization or other strategic alternatives that could maximize shareholder value. To assist in that endeavor, Donald Amaral, who has been a member of the Board of Directors of CareMatrix since its inception in 1996, has been engaged by the Company as a consultant to help identify strategic alternatives.

Abraham D. Gosman, Chairman and CEO of CareMatrix stated, "We feel that the current valuation of the assisted living sector may indicate that it would be more conducive for CareMatrix to be a private company rather than being in the public market at this time. Within the next week, we expect to identify an investment banker to work with us in this process."

CareMatrix Corporation 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

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