RENAL CARE GROUP, INC. ANNOUNCES MERGER WITH BAY AREA DIALYSIS SERVICES OF CORPUS CHRISTI, TEXAS

TRANSACTION TO ADD APPROXIMATELY 330 PATIENTS

NASHVILLE, Tenn.--(BUSINESS WIRE)--May 5, 1997--Renal Care Group, Inc. (Nasdaq/NM:RCGI) today announced that it has entered into a definitive merger agreement with Bay Area Dialysis Services of Corpus Christi, Texas, a provider of dialysis services to approximately 330 patients. Bay Area Dialysis Services operates six dialysis facilities in Corpus Christi and the surrounding area and provides acute dialysis services to two local hospitals. The transaction will be a tax-free exchange of stock and will be treated as a pooling-of-interests for accounting purposes. As part of the transaction, the Company will manage the practice of five nephrologists. Terms were not disclosed. Following completion of the transaction, Renal Care Group, Inc. will operate a total of 12 facilities in northeast and southeast Texas providing services to approximately 870 patients suffering from end-stage renal disease.

Mr. Sam A. Brooks, Jr., president and chief executive officer of Renal Care Group, Inc., said, "A merger with Bay Area Dialysis Services is consistent with our overall strategy of establishing significant market share with quality providers of nephrology services in anticipation of the arrival of capitation for ESRD patients. Furthermore, our practice management initiatives continue to position the Company to eventually provide a full-range of nephrology services to our patients."

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, excluding this transaction, currently provides dialysis and ancillary services to approximately 6,300 patients through 103 owned and managed outpatient dialysis centers in 17 states, in addition to providing acute dialysis services in 51 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.