Dialysis Corporation of America Reports Second Quarter 1999 Earnings

Business Wire, August 17, 1999

LEMOYNE, Pa.--(BUSINESS WIRE)--Aug. 17, 1999--

Dialysis Corporation of America (Nasdaq:DCAI) announced revenues of $1,558,000 and a net loss of $(283,000) or $(.08) per share for the second quarter of 1999 compared to revenues of $929,000 and a net loss of $(102,000) or $(.03) per share for the second quarter of 1998. Revenues for the first half of 1999 amounted to $2,813,000 with a net loss of $(430,000) or $(.12) per share compared to revenues of $1,874,000 with a net loss of $(179,000) or $(.05) per share for the first half of 1998.

Bart Pelstring, President, commented, "Results of operations continue to be in line with our expectations as we continue to concentrate on the development of new dialysis centers and related business opportunities. The second quarter reflected increased revenues over the first quarter, as well as improved operating results, exclusive of non-recurring costs of approximately $246,000.

Dialysis Corporation of America owns and operates free standing kidney hemodialysis centers in Pennsylvania and New Jersey, providing patients with their choice of a full range of quality in-center, acute or at-home hemodialysis services. The Company is developing a new center in New Jersey and evaluating other expansion prospects.

This release contains forward-looking statements that are subject to risks and uncertainties, including but not limited to, certain delays beyond the Company's control with respect to future business events, regulation of dialysis operations, government rate determination for Medicare reimbursement, the highly competitive environment in the operation and acquisition of dialysis centers, satisfactory conclusion of merger and acquisition agreements and shareholder approval, and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission. -0-

           DIALYSIS CORPORATION OF AMERICA AND SUBSIDIARIES

            CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
                              (UNAUDITED)

                         Three Months Ended       Six Months Ended
                               June 30,               June 30,
                      ----------------------- -----------------------

                          1999       1998        1999        1998
                      ----------- ----------- ----------- -----------
Revenues:
 Medical service
  revenue              $1,454,959  $  815,503  $2,622,314  $1,633,814
 Interest and other
  income                  102,652     113,588     190,421     240,315
                      ----------- ----------- ----------- -----------
                        1,557,611     929,091   2,812,735   1,874,129
Cost and expenses:
 Cost of medical
  services              1,019,413     596,101   1,885,323   1,182,177
 Selling, general and
  administrative
  expenses                845,237     465,622   1,436,597     921,512
 Interest expense          16,559      20,295      33,585      39,527
                      ----------- ----------- ----------- -----------
                        1,881,209   1,082,018   3,355,505   2,143,216
                      ----------- ----------- ----------- -----------

Loss before
 income taxes            (323,598)   (152,927)   (542,770)   (269,087)

Income tax benefit        (41,000)    (51,000)   (113,000)    (90,000)
                      ----------- ----------- ----------- -----------

Net loss               $ (282,598) $ (101,927) $ (429,770) $ (179,087)
                      =========== =========== =========== ===========


Loss per share:
 Basic                 $     (.08) $     (.03) $     (.12) $     (.05)
                      =========== =========== =========== ===========
 Diluted               $     (.08) $     (.03) $     (.12) $     (.05)
                      =========== =========== =========== ===========