InterDent, Inc. Announces Results for Dental Care Alliance's Fourth Quarter and 1998 Fiscal Year

Business Wire, March 12, 1999

EL SEGUNDO, Calif.--(BW HealthWire)--March 12, 1999--InterDent, Inc. (NASDAQ NM: DENTD) today announced the results of Dental Care Alliance, Inc.'s ("DCA") fourth quarter and 1998 fiscal year. As of today, March 12, 1999, DCA and Gentle Dental Service Corporation are wholly-owned subsidiaries of InterDent, Inc.

During the fourth quarter ended December 31, 1998, DCA's revenues increased 210% to $9,209,270 from revenues of $2,970,038 for the corresponding period of the previous year. Of the increase in revenues, $1,125,555 is attributable to existing practices and the balance relates to new affiliations. Income excluding corporate restructure and merger costs reached $1,186,874 or $0.17 per diluted share on 7,079,413 shares for the quarter compared to $275,046 or $0.05 per diluted share on 6,006,828 shares in the fourth quarter last year. Including the restructure and merger-related expenses, net income was $598,924 or $0.08 per diluted share.

For the year ended December 31, 1998, revenue increased to $29,336,391 versus $7,879,078 for the 1997 fiscal year. Income for the 1998 fiscal year excluding corporate restructuring and merger costs was $3,685,752 or $0.52 per diluted share compared to $309,805 or $0.07 per diluted share for the 1997 fiscal year. Including merger related expenses, net income for the 1998 fiscal year was $3,097,802 or $0.44 per diluted share.

Dr. Steven Matzkin, Co-chairman, president and chief dental officer of InterDent, stated, "Both Gentle Dental and Dental Care Alliance posted strong results for the fourth quarter and 1998 fiscal years. On a combined basis, excluding the merger related expenses, the company would have reported corporate EBITDA of 11.6% and facility EBITDA of 16.5%, as well as fourth quarter annualized net patient revenues under management in excess of $200 million. This performance bodes well for InterDent, which we believe will set a new standard in the dental management services industry."

Matzkin continued, "For its part, DCA continued to execute on its growth strategy as we worked through the details of the merger and integration plans during the fourth quarter. Same-store growth exceeded 14 percent for the quarter, giving us an annual same-store growth level of 14 percent. We also completed a significant acquisition during the fourth quarter, entering the Philadelphia market. We are looking forward to leveraging our strength in center management into the remaining approximately 70 percent of InterDent sites."

Dental Care Alliance managed 78 dental practices as of December 31, 1998, compared to 29 practices as of December 31, 1997.

For further information on InterDent, please refer to today's press releases entitled, "InterDent Announces Results for Gentle Dental's Fourth Quarter and 1998 Fiscal Year" and "InterDent Adds Seven Dental Practices in Detroit, Michigan."

InterDent is the largest provider of dental management services in the US. The company provides dental management services to 183 locations in California, Oregon, Washington, Idaho, Nevada, Hawaii, Florida, Georgia, Michigan, Pennsylvania and Indiana. As of March 11, 1999, InterDent has over $210 million in annualized net patient revenues under management. The company is continuing to expand by building a fully integrated support environment utilizing advanced information technologies to enable dental professionals to provide patients with high quality, comprehensive, convenient and cost effective care.

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 InterDent'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, and other factors disclosed in the Company's filings with the Securities and Exchange Commission. The forward-looking statements should be considered in light of these risks and uncertainties. -0-

                        DENTAL CARE ALLIANCE, INC.
                     FINANCIAL HIGHLIGHTS (Unaudited)

                              Quarter Ended          Year Ended
                               December 31,          December 31,
                              1998      1997        1998      1997

Management fees           $8,979,224 $2,895,437 $28,641,030 $7,588,193
Consulting and licensing
 fees, net                   230,046     74,601     695,361    290,885
  Total revenues           9,209,270  2,970,038  29,336,391  7,879,078
Staff salaries and
 benefits                  2,566,245    727,051   8,015,757  2,021,497
Dental supplies              645,910    259,129   2,039,687    650,444
Lab fees                     925,452    343,414   3,101,909    971,024
Marketing                    393,633    151,488   1,127,906    414,519
Occupancy costs            1,117,964    383,161   3,310,787    998,141
Other                        542,922    266,009   1,931,947    851,631

  Total managed dental
   center expenses         6,192,126  2,130,252  19,527,993  5,907,256

General and administration   932,786    516,870   3,472,675  1,387,452
Depreciation and
 amortization                363,819     76,619   1,062,646    163,681
Corporate restructure and
  merger costs               587,950         --     587,950         --

                           1,884,555    593,489   5,123,271  1,551,133

  Operating income         1,132,589    246,297   4,685,127    420,689
Interest income              206,328    249,604     871,727    314,710
Interest expense             (80,278)   (31,845)   (231,746)  (51,142)

                             126,050    217,759     639,981   263,568

  Income before income
   taxes                   1,258,639    464,056   5,325,108   684,257
Income taxes                 659,715    179,010   2,227,306   263,952

  Net income                $598,924   $285,046  $3,097,802  $420,305

Adjustment to redemption
 value of common and
  preferred securities            --         --          --   (10,500)
Cumulative preferred
 stock dividend                   --    (10,000)         --  (100,000)
  Net income applicable
   to common shares         $598,924   $275,046  $3,097,802  $309,805

Net income per common share:
  Basic                        $0.09      $0.05       $0.44     $0.07
  Diluted                      $0.08      $0.05       $0.44     $0.07

Weighted average common
 shares outstanding:
  Basic                    7,031,107  5,919,350   6,996,842 4,610,331
  Diluted                  7,079,413  6,006,828   7,080,755 4,697,809



                      DENTAL CARE ALLIANCE, INC.
                          FINANCIAL HIGHLIGHTS

                                        December 31,    December 31,
                                           1998            1997
                                        (unaudited)      (audited)

ASSETS
  Current assets                       $13,359,807     $22,167,219
  Property and equipment, net            5,493,711       1,113,050
  Non-current assets                    22,142,739       5,274,218

    Total assets                       $40,996,257     $28,554,487


LIABILITIES AND STOCKHOLDERS' EQUITY
  Current liabilities                   $2,812,382      $2,410,475
  Long-term liabilities                 10,295,027       1,590,187
  Stockholders' equity                  27,888,848      24,553,825

                                       $40,996,257     $28,554,487