NetCare Health Group, Inc. Intends to Vigorously Defend Against Trade Creditor Lawsuit

Business Wire, July 26, 2002

Business Editors

MIDDLETOWN, Conn.--(BUSINESS WIRE)--July 26, 2002

NetCare Health Group, Inc. (NCGH) (OTCBB:NCGH) announced that a lawsuit was filed against its wholly owned subsidiary NetCare Health Services, Inc. by James W. Daly, Inc., d/b/a Cardinal Health, in Essex Superior Court, Salem, Massachusetts. The plaintiff is claiming in excess of $280,000 for goods sold and delivered and that checks in excess of $190,000 tendered by the company were not honored by the bank. Plaintiff is seeking an injunction enjoining the company from interfering with its rights to take immediate possession of the collateral.

The NetCare Health Services has determined that Cardinal Health has not filed a UCC -1 and any claim for collateral is subordinated, first to Fleet National Bank and second to CarePortal, an indirect majority shareholder of the Company.

The Company has retained counsel in Massachusetts and intends to vigorously defend this lawsuit.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements contained herein which are not historical fact are forward-looking statements that are subjected to risks and uncertainties that could cause actual results to differ materially form those expressed in the forward-looking statements, including, but not limited to, the outcome of the litigation and other risks detailed from time to time in NetCare Health Group, Inc.'s filings with the Securities and Exchange Commission.