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Nashville, Tennessee (July 9, 2002) - Renal Care Group, Inc. (NYSE:RCI)
today announced that it had finalized agreements for credit facilities
totaling $150 million led by Bank of America, and including SunTrust Bank,
Amsouth Bank and Wells Fargo Bank. The credit facilities include a $100
million three-year facility and a $50 million 364-day facility. Renal
Care Group may use these credit facilities to fund working capital needs
and capital expenditures and for other general corporate purposes.
In addition, Renal Care Group announced that its Board of Directors
has approved an increase in the Company's previously announced share repurchase
plan from $50 million to up to $100 million of the Company's common stock.
Through July 8, 2002, Renal Care Group has invested approximately $22
million in repurchasing its common stock under this program, leaving a
total of approximately $78 million available. Additional share repurchases
under this program will be made from time to time in accordance with applicable
securities regulations in open market or privately negotiated transactions.
The actual number of shares to be purchased, the timing of purchases and
the prices paid will depend on future market conditions. Repurchased shares
will be held in Renal Care Group's treasury and will be available for
resale and for general corporate purposes. As of July 8, 2002, the Company
had approximately 51 million common shares outstanding.
In commenting on these announcements, Mr. Sam Brooks, chairman and chief
executive officer of Renal Care Group, said, "We view the completion
of these credit agreements as an important step in maintaining our flexibility
to deal with opportunities as they present themselves. We're very pleased
to have such a strong bank group working with us. We believe that the
$150 million facilities, along with cash from operations, will allow us
to meet our expansion plans over the next several years."
"Given current stock market conditions and Renal Care Group's strong
balance sheet and cash flow, we believe that a share repurchase program
is a meaningful way to enhance shareholder value," continued Mr.
Brooks. "At current price levels, we believe our stock is an attractive
investment. We believe the use of capital to reduce our outstanding share
base, coupled with our continuing focus on acquiring dialysis programs
and developing de novo projects, is consistent with our strategies to
bring disciplined growth in earnings per share to our company."
Renal Care Group, Inc. is a dialysis services company that provides care
to patients with kidney disease. The Company currently treats approximately
19,200 patients through more than 240 owned outpatient dialysis facilities,
in addition to providing acute dialysis services to more than 120 hospitals.
Over 6,000 associates provide services across the Company's 26-state network.
Certain statements in this press release, particularly the statements
of Mr. Brooks, 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, including risks related to: changes in the Medicare and Medicaid
programs; risks related to EPO; payment reductions by private insurers,
hospitals or managed care organizations; compliance with health care and
other applicable laws; the integration of acquired companies; and changes
in the health care delivery, financing or reimbursement systems. These
and other factors affecting the company are discussed in more detail in
Renal Care Group's reports filed with the Securities and Exchange Commission,
including Renal Care Group's annual report on Form 10-K for the year ended
December 31, 2001 and its quarterly report on Form 10-Q for the quarter
ended March 31, 2002. Copies of Renal Care Group's SEC filings are available
from Renal Care Group upon request.
Contact: R. Dirk Allison
Chief Financial Officer
615-345-5500
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