RENAL CARE GROUP, INC. ANNOUNCES 56% INCREASE IN THIRD QUARTER REVENUES

COMPANY EXPANDS TEXAS AND FLORIDA NETWORKS

NASHVILLE, Tenn.--(BUSINESS WIRE)--Nov. 5, 1997--Renal Care Group, Inc. (Nasdaq/NM:RCGI) today announced financial results for the third quarter and nine months ended September 30, 1997.

Mr. Sam A. Brooks, Jr., president and chief executive officer of Renal Care Group, Inc., said, "We are very pleased with our third quarter results, which continue to improve due to our strong same-store treatment performance and revenue growth. As the end of 1997 draws near, we remain confident about Renal Care Group's prospects in 1998 based on the potential we see to further enhance our internal operations as well as the active pipeline of quality acquisition candidates."

Revenues for the third quarter ended September 30, 1997, increased 56% to $54,038,000 compared with revenues of $34,627,000 for the same period in 1996. The 1996 revenues have been restated for 1996 pooling-of-interests transactions. Net income before nonrecurring merger costs increased 58% to $5,213,000, or $0.22 per share, compared with pro forma net income of $3,303,000, or $0.16 per share, in the same period last year, again restated for 1996 pooling-of-interests transactions.

Revenues for the nine months ended September 30, 1997, increased 56% to $151,813,000 compared with pro forma revenues of $97,363,000 for the same period in 1996. The 1996 revenues have been restated for 1996 pooling-of-interests transactions. Net income before nonrecurring merger costs increased 56% to $14,128,000, or $0.61 per share, compared with pro forma net income of $9,072,000, or $0.46 per share, in the same period last year, again restated for 1996 pooling-of-interests transactions.

Same-store treatment and revenue growth were 8% and 14%, respectively, for the quarter ended September 30, 1997. The Company's days revenues in accounts receivable at September 30, 1997, were 63, substantially below the industry average.

The Company also announced that it had purchased the assets of STAT Healthcare, a division of Laidlaw, Inc., for a combination of cash and Renal Care Group, Inc. common stock. STAT Healthcare owns and operates 11 dialysis facilities located in eastern Texas serving approximately 850 patients suffering from end stage renal disease (ESRD). In addition to providing acute dialysis services in four hospitals, STAT also provides wound care services to ten hospitals. Following the transaction, Renal Care Group will operate a total of 23 facilities in eastern Texas providing services to nearly 1,800 patients.

Additionally, the Company announced that it has purchased substantially all of the assets of a dialysis facility located in Ft. Walton Beach, Florida. The facility serves approximately 90 patients and will add to Renal Care Group's presence in the Florida Panhandle.

Mr. Brooks added, "We are exceptionally pleased to be increasing the size of our Texas and Florida provider networks through the acquisition of these facilities. These transactions are consistent with our stated objective of achieving significant market share through a disciplined growth strategy."

During the quarter, Renal Care Group entered into an agreement with a consortium of banks to increase its revolving credit facility from $35 million to $125 million. The group of Nashville banks is composed of NationsBank of Tennessee, First American National Bank, First Union National Bank of Tennessee and SunTrust Bank. The unsecured facility is for a term of five years and provides for prime or LIBOR rate interest options based upon certain financial covenants.

In closing, Mr. Brooks said, "We are very pleased with the recognition which the Company is receiving nationally in both the nephrology and investment communities. The increase in the Company's credit line underscores the confidence of the investment community in Renal Care Group's management team and the Company's future. In addition, we are pleased that the Company was included in Forbes magazine's list of '200 Best Small Companies in America.' We attribute much of our success to our physician-driven focus which continues to distinguish us in our industry and provides favorable long-term strategies for the Company."

Recently, the Company announced that Harry R. Jacobson, M.D., was stepping down as chairman of the board of Renal Care Group and would assume the position of vice chancellor of medical affairs at Vanderbilt University. Mr. Sam A. Brooks assumed the post of chairman of the board in addition to his responsibilities as president and chief executive officer.

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. Following these transactions, the Company will provide dialysis and ancillary services to approximately 7,900 patients through 117 owned outpatient dialysis centers in 15 states, in addition to providing acute dialysis services in 64 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.

RENAL CARE GROUP, INC.
Unaudited Consolidated Statements of Earnings
(In thousands, except share data)

⁽¹⁾ Pro Forma results as if the five Founding Companies had been
combined during the periods presented.