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CHATTANOOGA GROUP AND SPINECARE SIGN MULTIMILLION-DOLLAR DEAL

 EAST ISLIP, N.Y., July 14 /PRNewswire/ -- Americare Health Group Inc.'s (OTC Bulletin Board: AHGR) wholly owned subsidiary, Spinecare, and Chattanooga Group of Chattanooga, Tenn., today announced they have signed a contract worth $2.4 million over three years, calling for Chattanooga to supply virtually all assessment and rehabilitation equipment for Spinecare centers throughout the United States.
 Spinecare's long range plans call for building and franchising multidisciplinary spinal treatment centers nationwide. In New York state, eight sites are being planned for the end of 1993. Currently, a model facility is now open in East Islip and two are under construction in Rockville Centre and Brooklyn. A fourth, in Huntington, is scheduled to break ground by Aug. 1. The company expects to have a total of 25 corporate-owned or franchised centers operating in New York, Pennsylvania, Connecticut, Texas, New Jersey, California and Virginia by 1994. The centers will incorporate medical and chiropractic care, as well as physical and occupational therapy offering complete back care, ranging from workplace evaluation to rehabilitation and work hardening.
 Chattanooga Group is the largest manufacturer of rehabilitation equipment in the United States and will supply Spinecare with a variety of evaluative and therapeutic equipment, including KIN-COM AP(TM) robotic dynamometers, ALLIANCE(TM) rehabilitation systems, electrotherapy units, treatment tables and soft goods.
 In announcing the contract, Dr. Robert J. Melillo, D.C., D.A.B.C.N., president of Spinecare, said, "Back pain as a cause of lost workdays is second only to the common cold, and it is estimated that eight out of ten Americans will at some time suffer a back injury. Our multidisciplinary approach, combined with Chattanooga's technologically advanced equipment, allows us to offer patients the finest and most effective back care available today."
 Americare Health Group stock is traded on the NASDAQ OTC Bulletin Board as AHGR.
 -0- 7/14/93
 /NOTE TO EDITORS: Artist's rendition of Spinecare's plans for nationwide multidisciplinary spinal treatment centers is available/
 /CONTACT: Paul F. Caviglia Jr., vice president of Americare Health Group, 516-277-5231/
 (AHGR)


CO: Americare Health Group Inc.; Spinecare; Chattanooga Group ST: New York, Tennessee IN: HEA SU: CON

GK-OS -- NY002 -- 1190 07/14/93 08:00 EDT
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Publication:PR Newswire
Date:Jul 14, 1993
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