NetCare Appoints New Managing Pharmacist, Updates Shareholders on Progress in Reorganization

Business Wire, Oct 2, 2002

Business Editors & Health Writers

MIDDLETOWN, Conn.--(BUSINESS WIRE)--Oct. 2, 2002

NetCare Health Group, Inc. (NetCare) (OTCBB:NCGH) today announced that it has appointed Ms. Joan Toone-Setzer to the position of Managing Pharmacist for its wholly owned subsidiary, NetCare Health Services, Inc.

President, Director and CEO Michael Kang said, "This is a key step in revitalizing NetCare. We have given Ms. Toone-Setzer a mandate to reduce costs, improve efficiency and increase margins. She has been given incentives to accomplish this, including cash bonuses and stock options."

Mr. Kang also reflected; "In the August 13, 2002 announcement of my appointment, I stated that one of my first tasks would be to slash operational expenses and seek additional funding. I am pleased to report that my initial efforts have resulted in significant progress."

-- The business is being restructured, and to date these efforts have reduced the Company's level of net loss per month to $20,000.

-- $133,333 of outstanding debt has been converted into equity (common shares) at $1 per share.

-- A $100,000 line of credit has been negotiated.

In addition, Mr. Kang reported that several significant steps have been taken to resolve previously reported problems:

-- The company has responded to the trade creditor lawsuit from

Cardinal Health by filing a defense. It is anticipated that

the resolution of this suit may take significant time. The

suit will be defended vigorously.

-- Buying arrangements have been established and are ongoing with

three new suppliers to replace Cardinal Health.

Mr. Kang further commented: "We continue to institute changes to prepare NetCare for its next phase of growth. We assure stockholders that progress in reorganizing NetCare will be accomplished swiftly and reported in a timely manner."

Finally, the Company announces that it has changed stock transfer agents. The new stock transfer agent is: Securities Transfer Corporation, 2591 Dallas Parkway Ste 102, Frisco, Texas 75034, Telephone: 469-633-0101, Fax 469-633-0088.

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.