CareNet Health Systems & Services Nts Rated by Fitch IBCA.

NEW YORK--(BUSINESS WIRE)--Aug. 25, 1999--

CareNet Health Systems and Services, Inc.'s $7,500,000 taxable variable rate demand revenue notes, series 1999 is rated `AA/F1+' by Fitch IBCA.

The rating for the notes is based on the 100% support of Bank of America, N.A. in the form of a transferable, irrevocable direct-pay letter of credit. The bank is obligated to make payments of principal, interest and purchase price upon maturity, acceleration, redemption and tender of the notes. The rating will expire upon the stated expiration date of the letter of credit, Sept. 15, 2006, upon any prior termination of the LOC or upon defeasance of the notes. The LOC provides full coverage of principal and interest payments due on the notes, as well as purchase price. Interest is computed at a maximum rate of 12% based on a year of 365 days for a period of 35 days. The underwriter and remarketing agent for the notes and notes is Banc of America Securities LLC. The sale is scheduled for Sept. 1, 1999.

The notes will bear interest at a weekly interest rate, to be determined by the remarketing agent. Interest payments are the first day of each month, commencing Oct. 1, 1999 and noteholders have the option to tender their notes, provided the remarketing agent is given seven days' notice of the purchase. The notes are subject to mandatory tender upon substitution of the LOC, and on any interest payment date selected by the borrower, with the bank's prior written consent. Optional and mandatory redemption provisions also apply to the notes.

Proceeds of the notes will be used by the borrower, CareNet Health Systems and Services, Inc., a Maryland corporation, to finance the cost of acquiring, constructing and equipping an assisted living facility and skilled nursing facility in Mt. Airy, MD and to pay the costs of issuance of the notes.