NetCare Reports Second Quarter and Six Months Earnings; Significant Changes are Planned to Regain Path to Profitability

Business Wire, August 15, 2002

Business Editors

MIDDLETOWN, Conn.--(BUSINESS WIRE)--Aug. 15, 2002

NetCare Health Group, Inc. (NetCare) (OTCBB:NCGH) today announced its results of operations. Both revenues and earnings have declined for both the current quarter and six-month periods, primarily due to the loss of several large customers.

For the quarter ended June 30, 2002, gross revenues decreased by approximately $1,144,000 to $729,000. For the six months ended June 30, 2002, gross revenues declined by approximately $1,441,000 to $2,283,800. Net losses for the quarter and six-month periods approximated $(1,527,300) and $(1,738,200), respectively.

In discussing the results, recently appointed President, Director and CEO Michael Kang noted: "While we are all disappointed with the current operating results, we remain confident that we still have the wherewithal to recapture the momentum and focus needed to restore both growth and, ultimately, profitability.

Mr. Kang stated: "I am working hard to resolve the previously-reported problems associated with vendors and trade suppliers. I plan to institute all the necessary changes within the Company to prepare it for its next phase of growth, including bringing expenses in line with revenue, securing necessary additional capital, finding a permanent, experienced CEO, establishing audit and management committees to ensure appropriate corporate governance, and expediting the rollout of our technology platform to attract new customers. I will report to stockholders on the success of these efforts within thirty days. In the mean time, I am calling on NetCare's employees, vendors, customers and investors to pull together and work with me so that the promise of NetCare can be realized for our mutual benefit."

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.