Dental Care Alliance Adds 22 Philadelphia Dental Offices with Annualized Net Patient Revenue of $8.0 Million

Business Wire, Nov 13, 1998

SARASOTA FL.--(BW HealthWire)--Nov. 13, 1998--

-Largest Transaction to Date-

Dental Care Alliance, Inc. (Nasdaq/NM:DENT) today announced the addition of 22 dental practices under management and one dental assistant training center, increasing annualized net patient revenue under management to approximately $56 million. The Sarasota-based dental management services company said the addition of this practice represents $8.0 million in annualized net patient revenue representing the largest single transaction completed by the Company to date. The aggregate purchase price is $5.6 million, or 70% of annualized net patient revenues, consisting of $2.2 million in cash and the balance in a note. The offices of this group are located in and around Philadelphia, Pennsylvania and bring the Company's total number of practices under management to 77.

"We have been looking to enter the northeast region for some time and we are pleased to be able to conclude this strategic affiliation," commented Dr. Steven Matzkin, Chief Executive Officer of Dental Care Alliance. "These Philadelphia-area practices are an excellent fit with DCA and share our philosophy of patient care and support of staff, as evidenced by their dental assistant training facility. This affiliation gives us an excellent platform for further development in this important geographic area."

Dental Care Alliance has recently announced its intention to merge its operations with those of Gentle Dental Services, Inc., (NASDAQ: GNTL) the leading provider of dental management services in the western US and one of the largest providers in the country. Gentle Dental provides dental management services to 91 practices in California, Oregon, Washington, Idaho and Hawaii, with a current annual run rate of patient revenues of approximately $142 million.

Dental Care Alliance is a dental services management company providing management and licensing services to dental practices in Florida, Georgia, Michigan, Indiana and Pennsylvania. The company currently manages 77 dental practices, of which 35 are located in Florida, 22 in Pennsylvania, nine in Michigan, eight in Georgia and three in Indiana.

This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21B of the Securities and Exchange Act of 1934. The company's actual results could differ materially from those set forth in the forward-looking statements. Certain factors that might cause such a difference include, among others, the pace of development and acquisition activity, the dependence on management agreements, the PAs and affiliated dentists, the reimbursement rates for dental services, and other risks detailed in the company's Securities and Exchange Commission filings.