2005 A Record Year for CareCentric®

Company’s accomplishments include record sales, and new product/technology and service offerings

ATLANTA (March 21, 2006)—CareCentric Inc., a leading provider of technology, business-operation and outsourcing solutions for home care, medical equipment and long-term care providers , announced a remarkable set of accomplishments in 2005 that set the stage for solid results in 2006. CareCentric posted record product sales and created new and enhanced business-process management and IT outsourcing services and solutions aimed at the evolving home-care continuum.

“We experienced a watershed year in 2005,” said John Festa, president and CEO. “Not only did we launch four new state-of-the-art software products, but we introduced several new services and completed acquisitions that allow us to provide a greater array of service options to our expanding market.

“In addition, CareCentric significantly increased sales of new products, creating a rapidly burgeoning backlog of future revenues with major growth in current revenues; expanded our market opportunities into long-term-care services; raised customer satisfaction to unprecedented levels; and added an array of service and pricing options that give our customers numerous cost-effective alternatives without deploying capital dollars.”

CareCentric’s MestaMed®, Dezine and STAT2 computer systems have been used by home health agencies and home medical equipment (HME) providers for more than 30 years. Over the past two years, the company has designed and deployed Ac-Cura®, its new Microsoft® .NET-based home health, HME, point-of-care and hospice system.

“The acceptance of our Ac-Cura product has been astounding,” said Festa. “We closed 2005 with some 80 units sold overall—a real testament to our customers’ belief in our new system’s operating, use and pricing flexibility.”

In 2005, the company also expanded its reach into the long-term-care market. CareCentric now offers outsourced business process services—along with a full range of customized consulting services—to both the HME and long-term-care markets. In all of CareCentric’s markets, a full range of IT outsourcing is also available, including networking, application hosting, backup, recovery, security and e-mail.

“With the increased demand from aging baby-boomers and the drive to keep patients out of hospitals, the industry must be prepared to provide an array of healthcare services in a variety of settings and at different levels,” said Festa. “As the industry moves to serve the entire home-care continuum, CareCentric is positioned to offer intellectual property and services that help its customers recognize and benefit from these emerging trends.”