RENAL CARE GROUP, INC. ANNOUNCES MERGER WITH DIALYSIS OPERATIONS IN ARKANSAS, OKLAHOMA AND MISSOURI

Transaction To Add Approximately 625 Patients

NASHVILLE, Tenn.--(BUSINESS WIRE)--Jan. 7, 1998--Renal Care Group, Inc. (Nasdaq/NM:RCGI - news) today announced that it has entered into definitive merger agreements 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 will be a tax-free exchange of stock and will be treated as a pooling-of-interests for accounting purposes. Terms of the transaction were not disclosed.

Mr. Sam A. Brooks, Jr., president and chief executive officer of Renal Care Group, Inc., said, "Our physician-driven focus and the commitment of our physician leadership to quality patient outcomes continue to gain us favorable consideration by independent providers of nephrology services. A disciplined growth strategy and attention to operational performance remain the keys to our long-term success." Ron Hughes, M.D. and Mr. David Jones, speaking for the merged dialysis operations, said, "The decision of our physicians to affiliate with Renal Care Group was based, to a large extent, on a shared vision for the important role of nephrologists in determining the future of treatment of renal disease. We look forward to being part of a national company committed to the delivery of quality patient care."

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 this transaction, the Company will provide dialysis and ancillary services to approximately 8,500 patients through 130 owned outpatient dialysis centers in 15 states, in addition to providing acute dialysis services in 70 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.