InterDent, Inc. to be Formed by Merger of Gentle Dental and Dental Care Alliance

Business Wire, Feb 11, 1999

EL SEGUNDO, Calif.--(BW HealthWire)--Feb. 10, 1999--

Over $210 Million in Annualized Net Patient Revenues Under Management

Will Make InterDent the Nation's Largest Publicly-Traded

Dental Management Service Company

Gentle Dental Service Corporation (Nasdaq: GNTL) and Dental Care Alliance, Inc. (Nasdaq NM: DENT) today announced that, subject to stockholder approval of their merger and satisfaction of certain other closing conditions, they will consummate a merger whereby each company will become a wholly-owned subsidiary of InterDent, Inc..

The joint proxy statement-prospectus pertaining to the merger transaction was declared effective by the Securities and Exchange Commission today. The merger, which will be voted by stockholders on or about March 11, 1999, will combine two of the largest and fastest growing companies in the dental management service industry, each with 12-month revenue growth exceeding 100 percent, and will create a company with annualized net patient revenue under management of over $210 million, operations in eleven states, and more than 180 dental offices under management.

In a combined statement, Michael Fiore, who will be Co-Chairman and Chief Executive Officer of InterDent, and Dr. Steven Matzkin, who will be Co-Chairman, President and Chief Dental Officer of InterDent, Inc., said, "Our selection of the name InterDent reflects our corporate philosophy and goals, which center on building an inter-related network of dental professionals providing high quality, comprehensive, convenient and cost effective dental care. In addition, while Gentle Dental and Dental Care Alliance historically have placed a premium on information systems for both office management and regional reporting, InterDent will be poised for the next logical step in our systems development. We intend to pursue an innovative approach to improving our business through use of the Internet. The first phase in this process is to set up the new company's web site at www.interdent.com, which is expected to be available February 22, 1999."

InterDent intends to add new interactive features to its web site, which are expected to be developed and introduced over the next three to twelve months. The site is being developed by iXL, a leading Internet services company, which provides Internet strategy consulting and comprehensive Internet-based solutions to Fortune 1000 companies and other corporate users of information technology. Additional information about iXL, Inc., can be found on its Web site at www.ixl.com.

"We are well into the process of integrating the two companies. The combined management teams have defined the MIS and operations strategies and implementation schedules, and the training and mentoring program plan. The mergers and acquisitions and development teams are already working together on our external expansion program," concluded Fiore and Matzkin, who are currently Chairman, Chief Executive Officer and President of Gentle Dental Service Corporation, and Chairman, Chief Executive Officer and President of Dental Care Alliance, Inc., respectively.

Gentle Dental is the leading provider of dental management services in the western US and one of the largest providers in the country. The company provides dental management services to 102 locations in California, Oregon, Washington, Idaho, Nevada and Hawaii, with a current annual run rate of patient revenues exceeding $150 million.

Dental Care Alliance provides management and licensing services to 78 dental practices in Florida, Georgia, Michigan, Pennsylvania and Indiana, with a current annual run rate of patient revenues of approximately $56 million.

On October 16, 1998, Gentle Dental Service Corporation and Dental Care Alliance, Inc. announced a definitive agreement to merge in a pooling-of-interests transaction.

This press release contains forward-looking statements that are made pursuant to the safe harbor provisions of The Private Securities Litigation Reform Act of 1995. The forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Those risks and uncertainties include Gentle Dental's and Dental Care Alliance's ability to close and absorb future acquisitions, the economic climate in the Company's service areas, potential changes in government regulation and in the dental insurance industry, actions by competitors, Gentle Dental's and Dental Care Alliance's ability to gain shareholder approval of the merger, the ability of InterDent to accomplish its Internet objectives and other factors disclosed in InterDent's (formerly known as Wisdom Holdings, Inc.) filings with the Securities and Exchange Commission. The forward-looking statements should be considered in light of these risks and uncertainties.