Dialysis Corporation of America Reports Second Quarter 2005 Results


LINTHICUM, Md., Aug. 15, 2005 (PRIMEZONE) -- Dialysis Corporation of America (Nasdaq:DCAI) announced financial results for the first half of 2005. Operating revenues for the second quarter of 2005 were $11,141,000 compared to $9,589,000 for the same period last year. Net income for the quarter was $444,000 or $.05 per share ($.05 diluted per share) compared to $388,000 or $.05 per share ($.04 diluted per share) for the same period last year. Operating revenues for the first half of 2005 were $21,754,000 compared to $18,216,000 for the same period last year. Net income for the first half of 2005 was $769,000 or $.09 per share ($.08 diluted per share) compared to $676,000 or $.08 per share ($.08 diluted per share) for the same period last year.

Stephen Everett, President and Chief Executive Officer, commented, "While we have experienced reimbursement pressure from our payors and the costs associated with the opening of new centers, the growth and financial performance of our company continues to be healthy. Operating revenues increased 16% and net income increased 14% for the quarter compared to the same period last year. Our six month results provided us with a 19% increase in operating revenues and an increase in net income of 14%, compared to the same period last year, in spite of approximately $100,000 costs incurred during the second quarter of 2005 related to our pending merger with our parent company, Medicore. At the same time, our facility expansion program is on target for the year, and well fueled for continued growth in 2006."

Dialysis Corporation of America currently owns or manages 23 free-standing operating kidney hemodialysis centers in Georgia, Maryland, New Jersey, Ohio, Pennsylvania, South Carolina and Virginia providing patients with a full range of quality in-center, and at-home dialysis services, as well as providing in-hospital services. The company has six new centers under development in Maryland, Ohio, Pennsylvania and South Carolina. As previously announced, the company is in the process of acquiring its parent company, Medicore (Nasdaq:MDKI).

This release contains forward-looking statements that are subject to risks and uncertainties that could affect the business and prospects of the company and cause actual results and plans to differ materially from those anticipated. Those factors include, but are not limited to, maintaining continued growth and profitability, receipt of shareholder approval relating to the merger of Medicore with our company, certain delays beyond the company's control with respect to future business events, the highly competitive environment in the establishment and operation of dialysis centers, the ability to develop or acquire additional dialysis facilities, whether patient bases of our facilities can mature to provide profitability, regulation of dialysis operations, government rate determination for Medicare reimbursement, and other risks detailed in the company's filings with the Securities and Exchange Commission, particularly as described in the company's proxy statement/prospectus relating to the merger of its parent, Medicore, Inc., with the company and in its annual report on Form 10-K/A1 for the fiscal year ended December 31, 2004. The historical results contained in this press release are not necessarily indicative of future performance of the company.

Other Dialysis Corporation of America press releases, a corporate profile, corporate governance materials, quarterly and current reports, its proxy statement/prospectus, and the most recent annual report on Form 10-K/A1 for the year ended December 31, 2004, and other filings with the Securities and Exchange Commission are available through Dialysis Corporation of America's Internet home page: http://www.dialysiscorporation.com.



           DIALYSIS CORPORATION OF AMERICA AND SUBSIDIARIES

              CONSOLIDATED CONDENSED STATEMENTS OF INCOME
                              (UNAUDITED)

                       Three Months Ended         Six Months Ended
                          June 30,                   June 30,
                    -----------------------  -------------------------
                        2005        2004        2005         2004
                        ----        ----        ----         ----
 Operating revenues:
   Medical service
    revenue         $11,021,524  $9,496,608  $21,505,625  $17,906,132
   Other income         119,902      92,610      248,297      309,655
                    -----------  ----------  -----------  -----------
                     11,141,426   9,589,218   21,753,922   18,215,787
                    -----------  ----------  -----------  -----------
 Operating cost
  and expenses:
   Cost of medical
    services          6,724,869   5,738,179   13,267,470   10,900,401
   Selling, general
    and
    administrative
    expenses          3,454,250   2,901,470    6,698,011    5,696,940
   Provision
    for doubtful
    accounts            204,649     200,042      452,643      348,337
                    -----------  ----------  -----------  -----------
                     10,383,768   8,839,691   20,418,124   16,945,678
                    -----------  ----------  -----------  -----------

 Operating income       757,658     749,527    1,335,798    1,270,109

 Other income
  (expense):
   Interest income
    on officer/
    director note         1,421         960        2,713        1,921
   Interest expense
    to parent           (54,875)     (7,758)     (89,811)     (10,776)
   Other income,
    net                  44,538      21,806       76,393       44,100
                    -----------  ----------  -----------  -----------
                         (8,916)     15,008      (10,705)      35,245
                    -----------  ----------  -----------  -----------

 Income before
  income taxes,
  minority interest
  and equity in
  affiliate
  earnings              748,742     764,535    1,325,093    1,305,354

 Income tax
  provision             310,105     277,665      618,908      493,773
                    -----------  ----------  -----------  -----------

 Income before
  minority interest
  and equity in
  affiliate earnings    438,637     486,870      706,185      811,581

 Minority interest
  in income of
  consolidated
  subsidiaries          (89,131)   (130,610)    (152,401)    (186,442)

 Equity in affiliate
  earnings               94,689      31,362      214,798       50,395
                    -----------  ----------  -----------  -----------

    Net income      $   444,195  $  387,622  $   768,582  $   675,534
                    ===========  ==========  ===========  ===========
 Earnings per
  share:
     Basic          $       .05  $      .05  $       .09  $       .08
                    ===========  ==========  ===========  ===========
     Diluted        $       .05  $      .04  $       .08  $       .08
                    ===========  ==========  ===========  ===========


            

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