Needham, MA, September 14, 1998 – CareMatrix Corporation (AMEX:CMD), a fully integrated assisted living company, today announced that the Company remains confident it will meet or exceed consensus earning estimates for both the third quarter and full year 1998.

Mr. Abraham D. Gosman, Chairman, stated, "Facility openings are on or ahead of schedule with over twenty openings representing over 2,300 units coming on line in the next six months. Our fill rates remain strong, especially in the metropolitan New York marketplace, our largest market, and operating margins continue to increase."

He went on to say, "Demand in this sector remains strong, especially in markets where land is scarce and zoning is both difficult and time consuming. We are especially excited about our increase in focus on larger, campus-style developments that provide seniors with greater living choice and multiple entry points. Such projects will extend the stay of residents as they age in place and provide us with a longer and broader continuum of earnings."

The Company also noted that Chancellor Senior Housing, the owner of a majority of its facilities, has commitments for nearly $400 million of unused project financing and is in discussion with two major financial institutions for an additional $300-$400 million.

Mr. Gosman concluded, "We are not aware of any reason for the recent decline in our stock price. The fundamentals remain strong. We are executing ahead of plan. The recently completed SeniorCare acquisition both solidifies our position in the New York market and will be accretive to 1999 earnings. Our stock is now selling at less than ten times consensus earnings for 1999 versus a consensus growth rate in excess of 35%."

CareMatrix Corporation is a leading provider of senior living 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.