RENAL CARE GROUP, INC. ANNOUNCES THIRD QUARTER RESULTS OF $0.24 BEFORENONRECURRING MERGER COSTS

Nashville, Tennessee (October 30, 1996) - Renal Care Group, Inc. (Nasdaq/NM:RCGI) today announced financial results for the third quarter and the period beginning with the Company's initial public offering on February 7, 1996, through September 30, 1996.

Mr. Sam A. Brooks, Jr., president and chief executive officer of Renal Care Group, Inc., said, "We are pleased with our strong financial results and our operational performance. The pace of our acquisition activity during our first eight months as a public company has been a major factor in our success. We believe that the quality of our five founding dialysis companies combined with the complementary acquisitions we have completed to date have given us a very strong foundation upon which we are expanding services, introducing efficiencies, and building very strong same-store revenues. The recently completed RENALWEST transaction, which increases the number of patients to whom we provide dialysis services by approximately 34%, continues our strong momentum. We are confident that we can continue this level of success for the remainder of the year and into calendar year 1997."

Revenues for the third quarter ended September 30, 1996, increased 20% to $34,627,000 compared with revenues of $28,843,000 for the same period in 1995. Net income before nonrecurring merger costs increased 57% to $3,303,000, or $0.24 per share, compared with pro forma net income of $2,104,000, or $0.19 per share, in the same period last year. The results for the third quarter ended September 30, 1995, are presented on a pro forma basis, which assumes that the founding companies and acquisitions were combined during the period. Net income after nonrecurring merger costs and a one4ime, merger-related income tax charge was $1,448,000, or $0.11 per share.

Revenues for the eight months ended September 30, 1996, were $90,987,000 and net income before nonrecurring merger costs was $8,559,000, or $0.64 per share. On a pro forma basis, which assumes that the founding companies and acquisitions had been combined during the nine months ended September 30, 1996 and 1995, revenues for the first nine months of 1996 would have increased 14.9% to $97,363,000 compared with $84,749,000 for the same period in 1995. Net income before nonrecurring merger costs, on a pro forma basis, increased 49% to $9,072,000, or $0.69 per share, compared with $6,084,000, or $0.55 per share, in the same period last year.

In closing, Mr. Brooks said, "Our physician orientation continues to be a major advantage in creating acquisition opportunities for our company. Clearly, prospective acquisition candidates find it very compelling that a majority of our Board of Directors are nephrologists. This distinction in the marketplace provides us with numerous acquisition opportunities and enables us to be selective in choosing only the most complementary and compatible future partners.

During the third quarter, the Company completed its acquisition of RENALWEST, a Mesa, Arizona-based provider of dialysis services, in a tax-free exchange of stock accounted for as a pooling-of-interests transaction. Through this transaction, Renal Care Group added 19 outpatient dialysis centers, three centers providing home dialysis care, and 16 hospital contracts in the Phoenix and rural Arizona markets. Also during the third quarter, the Company completed a merger with Nephrology Center, Inc., which serves 250 patients in Pensacola and Crestview, Florida.

During the quarter, Renal Care Group also announced the addition of Gary Brukardt as executive vice president and chief operating officer of the Company. Mr. Brukardt has more than 25 years of health care industry experience, including significant experience in establishing integrated delivery networks and in managing full-risk capitation contracts. He most recently served as executive vice president of Baptist Health Care Affiliates of Nashville, Tennessee.

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 5,000 patients through 76 outpatient dialysis centers in 15 states, in addition to acute dialysis services to 44 hospitals.

This press release contains forward-looking statements that involve various risks and uncertainties. Actual results could differ materially from those contained in these forward looking statements due to certain factors, including business and economic conditions and availability of financing. These and other risks and uncertainties are detailed in the Company's reports filed with the SEC.

1 Includes results of operations since the Company's initial public offering in February 1996.

2 Pro forma results as if the five founding companies and acquisitions had been combined during the periods presented.

3 Income taxes for the three months ended September 30, 1996, and each of the nine-month periods ended September 30, 1996, are presented at the Company's effective rates of 37.0%, 37.3% and 37.3%' respectively, for comparative purposes. The actual reported tax rates before one4ime merger-related tax charges were 28.4%, 27.6% and 28.2%, respectively, for the three months ended September 30, 1996, and each of the nine-month periods ended September 30, 1996. Earnings per share at these tax rates were $0.28, $0.74 and $0.79 for the three month period ended September 30, 1996, and each of the nine-month periods ended September 30, 1996 and 1995. The lower tax rate reflects income from Subchapter S corporations not subject to tax.