CAREMATRIX CORPORATION APPOINTS

THOMAS J. MAGOVERN AS DIRECTOR

Needham, MA, June 16, 2000 – CareMatrix Corporation (NASDAQ: CMDCE), a fully integrated assisted living company today announced the appointment of Thomas J. Magovern to the Board of Directors.

                Thomas J. Magovern is a private financial/real estate consultant with over 35 years of experience in the commercial real estate/banking industry.

Formerly, Mr. Magovern was a Director of Meditrust from 1985 to 1999, and he was also, from 1997 to 1999, a Director of the Meditrust Operating Company.  He was Regional Vice President of the Commercial Real Estate Asset Recovery Department at Summit Bank, a New Jersey banking institution and previous to that, he was a principal of Nationwide Financial Corp.

He was Executive Vice President of Northeast Savings Bank in Hartford, Connecticut from 1991 to 1993.

Mr. Magovern’s real estate career began in 1970 as Vice President of Commercial Real Estate for the United Jersey Bank.  In 1974 he went on to serve for 17 years as Senior Vice President of the Construction and Commercial Real Estate Mortgage Department at City Federal Savings, (F.S.B.) in New Jersey.  He holds a New Jersey real estate license and is a member of the Planning Board of Berkeley Heights, New Jersey.

Abraham D. Gosman, Chairman of the Board of CareMatrix Corporation, said, “We are pleased to have Tom serve on the Board for the Company.  His years of accomplishment and experience will be helpful in providing advice and guidance as the Company pursues its strategic alternatives.”

                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, financing, 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.