RENAL CARE GROUP TO MERGE WITH MAJOR, SOUTHWEST PROVIDER OF DIALYSIS SERVICES INCREASES PATIENTS BY 34% AND EXPANDS NATIONAL PRESENCE

Nashville, Tennessee (August 7, 1996) - Renal Care Group, Inc. (Nasdaq/NM:RCGI) today announced that it has entered into a definitive merger agreement with RENALWEST, a Mesa, Arizona-based provider of dialysis services. RENALWEST currently operates 19 outpatient dialysis centers and three centers providing home dialysis care to patients in the Metro Phoenix area and rural Arizona. In addition, RENALWEST provides acute dialysis services to 16 hospitals in its markets. At the end of fiscal 1995, RENALWEST had revenues of approximately $32,000,000 and provided services to 1,200 patients. The transaction will be a tax-free exchange of stock and will be treated as a pooling-of-interests for accounting purposes. The transaction is expected to be completed by September 30, 1996, subject to regulatory and shareholder approval. Terms were not disclosed.

Kenneth Johnson, M.D., Chairman of RENALWEST, said, "The merger of RENALWEST and Renal Care Group brings together a unique blend of physicians and professional management to create an extraordinary vision for the future of nephrology care. The combined operations of the two companies will help us continually adapt to dramatic changes in the approach to the treatment of renal disease. Our never-ending commitment will be to the delivery of optimal care to our patients."

Mr. Sam A. Brooks, Jr., president and chief executive officer of Renal Care Group, Inc., said, "The merger with RENALWEST takes Renal Care Group to the next level in its development towards becoming a national leader in nephrology disease management. It represents a major expansion of our patient base into the highly attractive southwest U.S. market. The expertise and commitment to quality exhibited by the physicians, management and staff of RENALWEST will strengthen our position as we seek to provide the best possible value in nephrology care to our patients."

Harry Jacobson, M.D., chairman of Renal Care Group, added, "This transaction is one of the largest mergers of its kind between a publicly held nephrology services company and a privately held provider of dialysis care. When the merger is completed, Renal Care Group will be operating 73 dialysis facilities in 14 states and providing dialysis services to nearly 5,000 patients. In addition, the Company will provide acute dialysis services to 42 hospitals."

Renal Care Group, Inc. is a nephrology services company that was founded in June 1995 to focus on the provision of care to patients with kidney disease, including patients suffering from chronic kidney failure. The Company provides dialysis and ancillary services to approximately 3,500 patients through 51 outpatient dialysis centers in 13 states, in addition to acute dialysis services to 26 hospitals.