CareCentric Reports 2002 Financial Results

ATLANTA, GA (March 12, 2003) - CareCentric, Inc. (OTC Bulletin Board: CURA), a leading provider of management information systems to the home health care community, reports today its Annual Report of Financial Results for the year ended December 31, 2002. CareCentric reported a 7.7% increase in revenues to $22.0 million for 2002 against revenues of $20.4 million in 2001. The Net Cash Used in Operating Activities for 2002 was $0.8 million and in 2001 was $3.9 million. Results from Continuing Operations for 2002 was a profit of $0.3 million compared to a loss of $9.8 million in 2001, after adding back an $11.8 million impairment charge recorded in 2001.

"This year’s results clearly illustrate the Company’s progress and operating focus during the last year," stated John R. Festa, President and CEO of CareCentric. "Our 2002 reported results of operations report a material improvement from losses in both 2000 and 2001 to a net profit in 2002 while posting an increase of 7.7% in sales for 2002 over 2001. In 2002, we met all required regulatory updates for our products, introduced new products for the point of care market and solidified our research and development plans for the future. In 2003 we will continue to further advance our improved financial performance while adding renewed emphasis on our customer service and development of our next generation of products."

Mr. Festa added, "It is our intent to continue to aggressively reinvest the Company’s cash flow into product enhancements including electronic billing modules, point-of-care based products and the development of new generation product platforms. We believe CareCentric is in a unique position to understand our customers’ needs in both the home health agency and medical equipment sectors."

"The Board of Directors is very pleased with the improved financial performance of the Company in 2002 and remains committed to supporting the Company in its strategic investment in its customers, products, and technological evolution." stated John E. Reed, Chairman of the Board.

CareCentric provides information technology systems and services to over 1,500 customers. CareCentric provides freestanding, hospital-based and multi-office home health care providers (including skilled nursing, private duty, home medical equipment and supplies, IV pharmacy and hospice) complete information solutions that enable these home care operations to generate and utilize comprehensive and integrated financial, operational and clinical information. With offices nationwide, CareCentric is headquartered in Atlanta, Georgia.

Note regarding Private Securities Litigation Reform Act: Statements made in this press release which are not historical facts, including projections, statements of plans, objectives, expectations, or future economic performance, are forward looking statements that involve risks and uncertainties and are subject to the safe harbor created by the Private Securities Litigation Reform Act of 1995. CareCentric's future financial performance could differ significantly from that set forth herein, and from the expectations of management. Important factors that could cause CareCentric's financial performance to differ materially from past results and from those expressed in any forward looking statements include, without limitation, the inability to obtain additional capital resources, variability in quarterly operating results, customer concentration, product performance and acceptance, long sales cycles, long and varying delivery cycles, CareCentric's dependence on business partners, emerging technological standards, risks associated with acquisitions and the risk factors detailed in CareCentric's Registration Statement on Form S-4 (File No. 333-96529) and from time to time in CareCentric's periodic reports filed with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates.