CAREMATRIX ANNOUNCES INTEREST PAYMENT
MADE ON CONVERTIBLE SENIOR
SUBORDINATED NOTES

Needham, MA, March 14, 2000 – CareMatrix Corporation (NASDAQ: CMDC), a fully integrated assisted living company, today announced that it sent the $3.6 million interest payment to the Trustee for distribution to the bondholders of its $115 million 6.25% Convertible Senior Subordinated Notes.  The Company had previously announced on February 15, 2000 that it would utilize the 30-day grace period before making payment. 

             Mr. Abraham D. Gosman, Chairman and Chief Executive Officer stated, “We are pleased to announce that the Company made the interest payment prior to the expiration of 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.