CAREMATRIX EXPLORES POSSIBILITY OF ACQUIRING

CHANCELLOR SENIOR HOUSING GROUP

--Michael J. Zaccaro Elected President of CareMatrix--

--CareMatrix Elects To Utilize Grace Period For Interest Payment--

Needham, MA, February 15, 2000 – CareMatrix Corporation (NASDAQ: CMDC), a fully integrated assisted living company, today announced that it would explore the possibility of acquiring Chancellor Senior Housing Group, Inc. and certain of its affiliates as part of the strategic alternatives being pursued by the Company.

Mr. Abraham D. Gosman, Chairman and Chief Executive Officer stated, “CareMatrix, working with PaineWebber, who has been actively involved in the strategic alternative process, will review the feasibility of the Company’s acquiring Chancellor Senior Housing Group, Inc. and certain of its affiliates, thus eliminating the  “Black Box” financing structure.”

The Company also announced that Michael J. Zaccaro has replaced Marc H. Benson, who resigned to pursue other opportunities, as President of CareMatrix Corporation.  Mr. Gosman commented, “I am pleased that Mike has accepted the position of President.  He has over twenty years’ experience in operations and development in the health care industry.  His experience will be very important to the Company going forward.”

Additionally, the Company announced that it has elected to utilize the 30-day grace period for the $3.6 million interest payment, due February 15, 2000, on its $115 million 6.25% Convertible Senior Subordinated Notes due 2004.  The indenture under which the notes were issued provides for the 30-day grace period.

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.