CoreCare Systems, Inc. Makes Announcement.

PHILADELPHIA--(BUSINESS WIRE)--May 25, 1999--

CoreCare Systems, Inc. is a regional healthcare network operating in Eastern Pennsylvania, which performs behavioral therapy services and associated clinical research in central nervous system drugs. The Company has filed its Form 10-QSB for its first quarterly period ending March 31, 1999.

For the quarter the Company's revenues were $6,919,018, an increase of 48% from the comparable quarter of 1998. This increase was due to CRCS's opening of its 63-bed drug and alcohol treatment center as well as increased revenue due to higher census in the psychiatric hospital and residential treatment center. Combined patient days for these programs increased 80% over the comparable period last year. Additionally, Quantum Clinical Services Group, which performs clinical drug trials, produced its first quarter of revenues in 1999. Rapid growth is expected in this sector as contracts and programs are added in 1999.

The company has reported a net loss of $620,708 for the quarter versus quarterly losses last year of $1,267,053. EBITDA for first quarter of 1999 increased dramatically to $615,496 from an EBITDA of ($9,264) for first quarter 1998. These results include $669,421 to increase reserves for bad debts attributable to 1998.

Thomas T. Fleming, Chairman, reported that he "expected continued improvements in Company revenues and earnings over the balance of 1999." The company has already begun hiring for the additional 16-bed expansion to the drug and alcohol program. Further growth will be achieved as the company begins dispensing Methadone on an inpatient basis in its program for non-hospital detoxification services. The company has signed new leases with third party tenants, which will impact the latter half of the year and increase tenant revenue. Operating systems continued to be re-engineered creating greater efficiencies and savings.

Mr. Fleming further noted that, "the Management Team continues to be enthusiastically optimistic about the Company's future growth and profitability."

This press release may contain forward-looking statements and projections, including statements regarding plans and objections of management for future operations and services and statements concerning expectations that are based on management's belief as well as assumptions made by, and information currently available, to management. The company's actual results may differ materially from the plans envisioned, or results projected by these statements, if the company's assumptions prove to be incorrect.