RENAL CARE GROUP, INC. ANNOUNCES FORMATION OF NEW VENTURE WITH DOMINANT PROVIDERS OF NEPHROLOGY SERVICES IN THE PACIFIC NORTHWEST

COMPANY ALSO ANNOUNCES COMPLETION OF MERGER WITH NINE DIALYSIS FACILITIES, ADDING APPROXIMATELY 625 PATIENTS

NASHVILLE, Tenn.--(BUSINESS WIRE)--Jan. 13, 1998-- Renal Care Group, Inc. (Nasdaq/NM:RCGI - news) today announced that it has entered into definitive agreements to form a new venture with three providers of dialysis services in Portland, Oregon, and Vancouver, Washington Oregon Health Sciences University (OHSU), Legacy Health System, and Comprehensive Kidney Center. The new venture will provide dialysis services to persons with End Stage Renal Disease in Oregon and Southwest Washington.

Initially, the new venture will operate six dialysis facilities serving approximately 700 patients. Medical director services will be provided by Northwest Renal Clinic and the Division of Nephrology at OHSU. Renal Care Group will own a majority of the new venture and manage the business operations of the venture, which will be formed as a limited liability company.

OHSU is the only academic health sciences institute in Oregon. It is devoted to the education of health professionals, biomedical research, patient care and public service. Portland-based Legacy Health System is an integrated provider of medical services. Comprising four hospitals, primary and occupational medicine clinics and a home healthcare network, Legacy is twice the winner of the prestigious Oregon Quality Award. Its facilities house cancer, heart, laboratory and rehabilitation services, a recently remodeled children's hospital, a Level I trauma center and the Oregon Burn Center. Comprehensive Kidney Center is a provider of peritoneal dialysis services in Oregon and Southwest Washington. Its shareholders are physicians associated with Northwest Renal Clinic and the Division of Nephrology at OHSU.

Mr. Sam A. Brooks, Jr., president and chief executive officer of Renal Care Group, Inc., said, "In a constantly evolving healthcare services environment, cooperation between physicians, hospitals and national providers is essential to providing comprehensive, quality care to patients with acute and chronic renal disease. This collaboration brings together a distinguished group of private practice and academic nephrologists, two hospital systems that are committed to providing the highest quality, most comprehensive, cost-effective care to their respective patients and a leading national provider of nephrology services with a proven track record of improving patient outcomes."

Richard A. Parker, M.D., senior partner with Comprehensive Kidney Center, said, "The major benefit of this venture is the creation of a community-based program that combines the resources of physicians, two large hospital-based healthcare systems and a national renal care provider to deliver an exceptional level of care to our patients. The venture also expands opportunities for clinical research for the benefit of persons suffering from kidney disease."

William M. Bennett, M.D., professor of medicine at Oregon Health Sciences University and president-elect of the American Society of Nephrology, said, "This venture combines the highest quality, physician-directed medical care with the community resources necessary to accomplish the best outcomes of the kidney patients of the region. It also makes the latest research advances in End Stage Renal Disease easily available to our patients."

"This is a clear case of where the whole is greater than the sum of its parts," said Tim Goldfarb, director of OHSU's Health Care Systems. "With the continuing demand for cost containment in health care, it is essential that health systems continue to provide state-of-the-art care while maintaining a constant eye on cost efficiencies. By pooling our resources, we can increase our patients' access to expert care while at the same time reducing costs. We believe that Renal Care Group's physician-driven approach and proven track record for improving patient outcomes are consistent with the mission of OHSU and other academic medical centers."

Robert Pallari, president and chief operating officer of Legacy Health Systems, said, "Legacy Health System is delighted to be part of this opportunity to ensure continued quality care to our dialysis patients as well as to improve access to those services. Pooling the talents and commitment of the leading kidney services providers in the Portland/Vancouver metropolitan area with the expertise and track record of Renal Care Group means patients with kidney disease will receive the best and most cost-effective care available today and in the future."

The Company also announced the completion of its previously announced merger with nine dialysis facilities located in Arkansas, Oklahoma and Missouri. The facilities currently provide treatment to approximately 625 patients as well as acute, in-patient dialysis treatment services to six area hospitals. The transaction was a tax-free exchange of stock and was treated as a pooling-of-interests for accounting purposes.

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 formation of the new venture, the Company will provide dialysis and ancillary services to approximately 9,300 patients through 136 owned outpatient dialysis centers in 17 states, in addition to providing acute dialysis services in 74 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.