NetCare Announces Appointment of Michael Kang as President, CEO and Director

Business Wire, August 13, 2002

Business Editors & Health/Medical Writers

MIDDLETOWN, Conn.--(BUSINESS WIRE)--Aug. 13, 2002

NetCare Health Group, Inc. (NetCare) (OTCBB: NCGH) announced today that, effective August 7, 2002, Michael Kang has been appointed President, Director and CEO of NetCare on an interim basis, without salary.

Reflecting on his appointment, Mr. Kang added: "The recent decline in our company's share price has been a powerful wakeup call. Investors felt that decisive action was necessary to preserve and protect their interests. The Company has been faced with several challenges that now require some very significant changes. I will slash operational expenses to allow the Company to achieve profitability in the near future, while rebuilding sales. The Company will also seek additional funding to stabilize the Company while the new measures are achieving the desired effect."

Former CEO Edward Foster has resigned, but will remain active in the public parent and the operating company as both a Director and Chief Information Officer. The Company noted that Mr. Foster had been asked to serve as CEO when the new, public company was formed as the parent of the operating division. During his tenure, the primary issue for the Company has been the lack of adequate working capital to fund both new initiatives and to address current operational requirements. Mr. Foster's new mission is to make NetCare the technology-driven leader in the delivery of pharmaceutical products and services to the Long Term Care and Assisted Living Markets.

About NetCare Health Services, Inc.

NetCare Health Services, Inc., a wholly owned subsidiary of NetCare Health Group, Inc., is a federally and state licensed pharmaceutical company located in Middletown, CT. The Company provides in-house pharmaceutical services for LTC (Long Term Care) facilities in the state of Connecticut. The Company's services include prescription fulfillment, staffing, insurance and Medicare processing for its LTC network of clients.

Forward-looking statements in this press release are made pursuant to the "safe-harbor" provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on current management expectations that involve risks and uncertainties that may result in such expectations not being realized. Potential risks and uncertainties include, but are not limited to, the risks described in filings with the Securities and Exchange Commission.