RENAL CARE GROUP REPORTSEARNINGS PER SHARE OF $0.33 VS. $0.28

Nashville, Tennessee (July 31, 2000) — Renal Care Group, Inc. (Nasdaq/NM:RCGI) today announced results for the second quarter and six months ended  June 30, 2000.

Mr. Sam Brooks, president and chief executive officer of Renal Care Group, Inc., said, "I am very pleased with our excellent performance in the first half of this year.  We believe we are well positioned to continue our strong performance throughout the remainder of the year.  All the key indicators – earnings per share, revenues, and treatment growth – paint a positive picture of a company in an industry that values commitment to high quality patient service and care.  Our management team is intently focused on continuing to meet our quality and financial objectives."

For the quarter ended June 30, 2000, revenues increased 20% to $154.2 million compared with revenues of $128.5 million for the same period in 1999, prior to the restatement for a pooling-of-interests transaction.  Net income before merger expenses increased 21% to $15.6 million.  Earnings per share increased 18% to $0.33 compared with earnings per share of $0.28 in the same quarter of last year.

For the six months ended June 30, 2000, revenues increased 22% to $303.8 million compared with revenues of $249.4 million for the same period in 1999, prior to the restatement for a pooling-of-interests transaction.  Net income before merger expenses increased 23% to $30.5 million.  Earnings per share increased 21% to $0.64 compared with earnings per share of $0.53 in the same six-month period last year.

As restated to give effect to the merger with Renal Disease Management by Physicians, Inc. of Youngstown, Ohio, which was treated as a pooling-of-interests for accounting purposes, revenues for the second quarter ended June 30, 2000, increased 15% to $154.2 million as compared with $134.0 million for the same period in 1999.  Net income before non-recurring merger costs increased to $15.6 million, or $0.33 per share, compared with net income of $13.0 million, or $0.28 per share, in the same period in the prior year, an increase of 18% in earnings per share.  The six-months results restated for the merger with Renal Disease Management by Physicians reflect revenues for the six months ended June 30, 2000, increasing 17% to $303.8 million as compared with $260.5 million for 1999.  Net income before nonrecurring merger costs for the six months ended June 30, 2000, increased 21% to $30.5 million, or $0.64 per share, compared with net income of $25.1 million, or $0.54 per share last year, an increase of 19% in earnings per share.

Same-store treatment and same-store revenue growth were 7.3% and 13.2%, respectively, for the three months ended June 30, 2000.

During the second quarter, Renal Care Group executed a letter of intent to form a joint venture with Spokane, Washington-based Sacred Heart Medical Center, to provide dialysis services to Sacred Heart's 425 patients through five outpatient dialysis facilities in Eastern Washington and Northern Idaho.  Under the terms of the transaction, which is expected to close in the third quarter, Renal Care Group will own 70% of the new venture and Sacred Heart will own the balance.

Renal Care Group, Inc. is a dialysis services company that provides care to patients with kidney disease.  The Company treats approximately 15,900 patients through 193 dialysis centers, in addition to providing acute dialysis services in 108 hospitals.   Over 5,000 associates provide services in the Company's 23-state network.

Certain statements in this press release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995.  These forward-looking statements reflect management's expectations and are based upon currently available information.  These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements of Renal Care Group to differ materially from those expressed in or implied by the forward-looking statements.  These factors are discussed in more detail in the Company's reports filed with the Securities and Exchange Commission, including without limitation Renal Care Group's annual report on Form 10-K for the year ended December 31, 1999.  Copies of these filings are available from Renal Care Group upon request.

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

^* Restated amounts give effect to the merger with Renal Disease Management by Physicians, Inc., which was effective April 1, 2000, and was accounted for as a pooling-of-interests.