The letter of intent provides that the joint venture will acquire and operate the existing dialysis program of Sacred Heart. The program currently serves approximately 425 patients through five outpatient dialysis facilities in Eastern Washington and Northern Idaho.  Medical director services will be provided by the Rockwood Clinic, Spokane, Washington. Renal Care Group will manage the business operations.  Renal Care Group will own 70%  of the new venture and Sacred Heart will own the balance. Other terms of the transaction were not disclosed.  The letter of intent is subject to customary conditions, including the negotiation and signing of definitive agreements.

Skip Davis, Sacred Heart's chief executive officer, said  "Sacred Heart Medical Center is pleased to be part of this opportunity to ensure continued quality care to our dialysis patients.  Pooling the talent and commitment of the leading kidney services providers in the Inland Northwest 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."

Sam Brooks, chief executive officer of Renal Care Group, Inc., said, "This partnership with Sacred Heart Medical Center is an important step in Renal Care Group's goal to provide the best quality of dialysis care in concert with leading health care institutions and physicians.  We are delighted with the opportunity to work with Sacred Heart and to expand our network of care in the Northwest."

Dr. Curtis Wickre, M.D., a nephrologist and member of the Rockwood Clinic, said, "The Rockwood Clinic nephrologists are please to provide the physician leadership for this new partnership.  We feel that the joint venture blends Sacred Heart's tradition of excellent care with Renal Care Group's quality-driven efficiencies to assure the best care for Inland Northwest patients."

Sacred Heart Medical Center is a 623-bed hospital and is part of the Provident Services of Eastern Washington network of healthcare organizations sponsored by the Sisters of Providence.  Thirty-eight years ago, Sacred Heart was a pioneer of kidney dialysis in the Northwest.  It continues to serve the region providing all aspects of the treatment of kidney disease:  inpatient and outpatient dialysis, home dialysis, and a kidney transplant program.

The Rockwood Clinic is an independent, multi-specialty clinic with approximately 120 providers in Spokane, Washington.  The Clinic's six nephrologists provide kidney care, including dialysis and transplantation services, to patients in Eastern Washington and Northern Idaho.  Nephrologists of the Rockwood Clinic have served as the medical directors of the Sacred Heart dialysis program from its inception, a period of more than 30 years.

Renal Care Group, Inc. is a dialysis services company that provides care to patients with kidney disease.  The Company currently treats approximately 15,000 patients through 186 owned outpatient dialysis facilities, in addition to providing acute dialysis services to 105 hospitals.  Over 3,800 associates provide services across the Company's 23-state network.

Contact:
R. Dirk Allison
Chief Financial Officer
615-345-5500

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 the availability of financing.  These and other risks and uncertainties are detailed in the Company's reports filed with the SEC.