Dialysis Corporation of America Reports First Quarter 2006 Results


LINTHICUM, Md., May 11, 2006 (PRIMEZONE) -- Dialysis Corporation of America (Nasdaq:DCAI) announced financial results for the first quarter of 2006. Operating revenues for the first quarter were $13,217,000 compared to $10,612,000 for the same period last year, a 25% increase. Net income for the quarter was $519,000 or $.06 per share ($.05 diluted per share) compared to $324,000 or $.04 per share ($.04 diluted per share) for the same period last year, a 60% increase.

Stephen Everett, President and Chief Executive Officer, commented, "Our company continued to grow and thrive during the first quarter of 2006. We opened four new centers, including the acquisition of two Maryland centers and one Virginia center, and began, or continued, the construction of an additional four centers. Our financial performance continues to deliver as anticipated, despite first quarter costs of approximately $468,000 associated with the opening of new centers. Additionally, non-cash stock compensation expense of $135,000 was included in our results.

"Dialysis Corporation of America currently owns or manages 30 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 four new centers under development in Georgia, Pennsylvania and South Carolina."

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, 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 the company's dialysis facilities can mature to provide profitability, the extensive regulation of dialysis operations, government rate determination for Medicare reimbursement, pricing pressure from private payors, and other risks detailed in the company's filings with the SEC, particularly as described in the company's annual report on Form 10-K for the fiscal year ended December 31, 2005. The historical results contained in this press release are not necessarily indicative of future performance of the company.

The company's press releases, corporate profile, corporate governance materials, quarterly and current reports, and other filings with the SEC are available on Dialysis Corporation of America's internet home page: http://www.dialysiscorporation.com.



           DIALYSIS CORPORATION OF AMERICA AND SUBSIDIARIES

                   CONSOLIDATED STATEMENTS OF INCOME
                              (UNAUDITED)

                                                 Three Months Ended

                                                        March 31,

                                               2006              2005
                                               ----              ----
 Operating revenues:
   Sales
    Medical services revenue                $12,871,653    $10,484,101
    Product sales                               239,462           --
                                            -----------    -----------
         Total sales revenues                13,111,115     10,484,101
   Other income                                 105,868        128,395
                                            -----------    -----------
                                             13,216,983     10,612,496
                                            -----------    -----------
 Operating costs and expenses:
   Cost of sales
    Cost of medical services                  7,837,957      6,542,601
    Cost of product sales                       143,675           --
                                            -----------    -----------
                                      
         Total cost of sales revenues         7,981,632      6,542,601
   Stock compensation expense                   134,516           --
   Selling, general and
    administrative expenses                   3,988,770      3,243,761
   Provision for doubtful accounts              155,414        247,994
                                            -----------    -----------
                                             12,260,332     10,034,356
                                            -----------    -----------

 Operating income                               956,651        578,140

 Other income (expense)
   Interest income on 
    officer/director note                           --           1,292
   Interest expense on note
    and advances payable to parent                  --         (34,936)
   Other income, net                             66,981         31,855
                                            -----------    -----------
                                                 66,981         (1,789)
 Income before income taxes, 
  minority interest and equity in 
  affiliate earnings                          1,023,632        576,351

 Income tax provision                           416,974        308,803
                                            -----------    -----------
 Income before minority interest
   and equity in affiliate earnings             606,658        267,548

 Minority interest in income
   of consolidated subsidiaries                (180,281)       (63,270)

 Equity in affiliate earnings                    92,406        120,109
                                            -----------    -----------
         Net income                         $   518,783    $   324,387
                                            ===========    ===========
 Earnings per share:
      Basic                                        $.06           $.04
                                                   ====           ====
      Diluted                                      $.05           $.04
                                                   ====           ====


            

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