NetCare Health Group, Inc. Settles Disagreement with Lexington Health Care Group

Business Wire, Nov 6, 2002

Business Editors

MIDDLETOWN, Conn.--(BUSINESS WIRE)--Nov. 6, 2002

NetCare Health Group, Inc. (NetCare) (OTCBB:NCGH) announces that it has settled its disagreement with Lexington Health Care Group and Affiliates (Lexington). Lexington now agrees that it owes NetCare $550,000, and has granted the return to NetCare of its Medicare Part B business, which is historically profitable for both companies.

It is anticipated that this agreement will be put into effect as of January 1, 2003, pending legal drafting of the final documents and reinstatement arrangements for the Medicare Part B business.

NetCare President, Director and CEO Michael Kang commented, "This settlement is the next important step in our restructuring and revitalizing efforts. We are very happy to recover $550,000 in income that was reserved from our balance sheet in the previous quarter. We are delighted to have Lexington rejoin the group of companies that we serve, and we look forward to a long and profitable association with them."

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.