Multicare Reports Fiscal 1998Results.

KENNETT SQUARE, Pa.--(BW HealthWire)--Nov. 24, 1998--Genesis ElderCare Corp., the parent corporation of The Multicare Companies, Inc., today announced Multicare's results for the fourth quarter of fiscal 1998. Revenues for the quarter ended September 30, 1998 were $169.0 million, compared to revenues

of $186.0 million in the fourth quarter of the prior fiscal year. Earnings before interest, taxes, depreciation, amortization, rent, and corporate general, and administrative expense, and management fees (EBITDARM) were $40.9 million and $43.1 million in the quarters ended September 30, 1998 and 1997, respectively. The net loss for the quarter ended September 30, 1998 was $4.0 million compared to net income of $9.8 million for the corresponding period in the prior year. The net loss for the quarter ended September 30, 1998 reflects a higher than anticipated effective tax rate resulting in income tax expense of $4.2 million (non-cash). Occupancy rates for the quarters ended September 30, 1998 and 1997 were 91.8% and 92.6%, respectively.

Multicare's results for the quarter ended September 30, 1998 exclude the pharmacy, medical supply and rehabilitation businesses which were acquired by Genesis Health Ventures. Revenues and EBITDARM for the Multicare pharmacy, medical supply and rehabilitation businesses were $23.9 million and $4.1 million, respectively, for the three month period ended September 30, 1997.

Revenues for the fiscal year ended September 30, 1998 were $695.7 million, an increase of 2% over revenues of $679.3 million in the prior fiscal year. EBITDARM was $171.1 million compared to $163.7 million in prior fiscal year. Net income for the fiscal year ended September 30, 1998 was $0.2 million compared to $34.9 million in prior fiscal year. Net income in the current year reflects an effective tax rate of 97% resulting in income taxes of $8.8 million (non-cash) compared to an effective tax rate of 37% and income taxes of $22.2 million in the prior year due to non-deductible, goodwill attributable to the Multicare acquisition. Occupancy rates for the fiscal years ended September 30, 1998 and 1997 were 91.6% and 91.9%, respectively. The Company's quality mix of non-Medicaid patient revenues was 62% and 67%, respectively for the fiscal years ended September 30, 1998 and 1997. The net income for the prior fiscal year included an extraordinary charge of $2.2 million net of tax, related to the early retirement of debt. Net income for the prior fiscal year also included a non-recurring charge relating to the early conversion of Multicare's convertible debt.

Multicare's results for the fiscal year 1998 exclude the rehabilitation business acquired by Genesis Health Ventures effective October 1, 1998. Multicare's results for the fiscal year 1998 include for the three month period ended December 31, 1997, the pharmacy and medical supply business acquired by Genesis Health Ventures effective January 1, 1998. Revenues and EBITDARM for the Multicare pharmacy, medical supply and rehabilitation businesses included in 1997 fiscal year ended September 30, 1997 consolidated results were $79.4 million and $15.3 million, respectively.

Genesis ElderCare Corp., a joint-venture comprised of Genesis Health Ventures, Inc. (NYSE:GHV), The Cypress Group L.L.C., TPG Partners II, L.P. and Nazem, Inc. acquired The Multicare Companies, Inc. on October 10, 1997. The results for the quarter and fiscal year ended September 30, 1998 reflect the interest expense related to the debt incurred to finance the transaction and the incremental depreciation and amortization associated with the purchase price allocation. Multicare incurred management fee expense of approximately $10.1 million and $42.2 million in the quarter and the fiscal year ended September 30, 1998, respectively, in connection with its management agreement with Genesis Health Ventures, Inc.

The above statements include forwarding-looking statements. The Company cautions investors that any forward-looking statements made by the Company are not guarantees of future performance. Numerous factors exist which, in some case have affected, and in the future could cause results to differ materially from these expectations. These statements involve risks and uncertainties concerning the implementation and interpretation of healthcare reform legislation and other factors as detailed from time to time in the Company's filings with the Securities and Exchange Commission.

-0-

                    THE MULTICARE COMPANIES, INC.
                           AND SUBSIDIARIES
                         Financial Highlights
                           (In thousands)


                          Three Months Ended       Fiscal Year Ended
                              September 30,           September 30,
                            1998        1997        1998       1997

                                      (Predecessor)        (Predecessor
                                        Company)             Company)

Revenues, net             $168,988    $185,996    $695,633    $679,292
Net income (loss) before
 extraordinary
 item                      $(3,998)     $9,810        $236     $37,093
Net income (loss)          $(3,998)     $9,810        $236     $34,874

-0-