LINTHICUM, Md., May 7 /PRNewswire-FirstCall/ -- Dialysis Corporation of America ( NASDAQ:DCAI ) announced financial results for the first quarter of 2008. Revenues for the first quarter were $20,485,000 compared to $16,891,000 for the same period last year. Net income for the quarter was $449,000 or $.05 per share ($.05 diluted per share) compared to $383,000 or $.04 per share ($.04 diluted per share) for the same period last year.

   Stephen Everett, President and Chief Executive Officer, commented, "We are pleased with the continued growth and financial performance of our company. We began the development of two new centers during the quarter, as well as opening two centers that were under development in 2007, and acquired one center in Georgia that we had previously been managing. We are also in negotiations pertaining to additional development opportunities in strategic locations, as well as potential acquisitions, all of which are in line with our expansion plans."

   Financial results for the first quarter of 2008 include: (i) pre-tax costs associated with the opening of new centers of $176,000 for the first quarter of 2008 compared to $206,000 for the same period last year; (ii) non-cash stock compensation expense of $75,000 for the first quarter of 2008 compared to $114,000 for the same period last year.

   Dialysis Corporation of America currently owns 35 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.

             DIALYSIS CORPORATION OF AMERICA AND SUBSIDIARIES
                    CONSOLIDATED STATEMENTS OF INCOME
                               (UNAUDITED)
                                                Three Months Ended March 31,
                                                      2008            2007
  Operating revenues:
    Sales:
      Medical services revenue                 $20,195,002     $16,596,907
      Product sales                                290,086         231,060
        Total sales revenues                    20,485,088      16,827,967
    Other income                                       ---          62,560
                                                20,485,088      16,890,527

  Operating costs and expenses:
    Cost of sales revenues:
      Cost of medical services                  12,357,785      10,298,293
      Cost of product sales                        160,735         247,632
        Total cost of sales revenues            12,518,520      10,545,925

    Selling, general and administrative expenses:
      Corporate                                  2,388,544       1,648,523
      Facility                                   3,082,159       2,730,323
        Total                                    5,470,703       4,378,846
     Stock compensation expense                     74,601         113,970
     Depreciation and amortization                 662,572         635,736
     Provision for doubtful accounts               430,030         356,097

                                                19,156,426      16,030,574

  Operating income                               1,328,662         859,953

  Other expense, net                               (42,067)         (9,227)

  Income before income taxes and minority
   interest                                      1,286,595         850,726

  Income tax provision                             379,738         345,772

  Income before minority interest                  906,857         504,954

  Minority interest in income of consolidated
   subsidiaries                                   (457,945)       (121,734)

      Net income                                  $448,912        $383,220

  Earnings per share:
      Basic                                           $.05            $.04
      Diluted                                         $.05            $.04

  Weighted average shares outstanding:
      Basic                                      9,580,096       9,569,429
      Diluted                                    9,614,591       9,612,101



             DIALYSIS CORPORATION OF AMERICA AND SUBSIDIARIES
                       CONSOLIDATED BALANCE SHEETS
                               (UNAUDITED)

                                                 March 31,     December 31,
                                                    2008            2007
  Assets
  Current assets:
    Cash and cash equivalents                   $3,334,134      $2,447,820
    Accounts receivable, net                    20,272,678      20,159,926
    Inventories, net                             2,304,772       2,006,661
    Deferred income tax asset                      998,000         998,000
    Other current assets                         2,569,683       3,313,406

               Total current assets             29,479,267      28,925,813

  Property and equipment                        29,649,256      28,766,423
    Less accumulated depreciation and
     amortization                               12,839,276      12,264,029
                                                16,809,980      16,502,394

  Goodwill                                      10,549,502       8,576,893
  Other assets                                     847,452         841,092
             Total other assets                 11,396,954       9,417,985
                                               $57,686,201     $54,846,192

  Liabilities and Stockholders' Equity
  Current liabilities:
    Accounts payable and accrued expenses       $9,499,759     $10,224,199
    Income taxes payable                               ---          33,297
    Current portion of long-term debt               66,000          56,000
    Acquisition liabilities                      1,296,814             ---
             Total current liabilities          10,862,573      10,313,496

  Deferred income taxes                            574,000         574,000
  Long-term debt, less current portion           7,837,541       7,009,419
             Total liabilities                  19,274,114      17,896,915

  Minority interest in subsidiaries              5,810,080       4,942,797

  Commitments and Contingencies

  Stockholders' equity:
    Common stock                                    95,801          95,736
    Additional paid-in capital                  15,734,332      15,587,782
    Retained earnings                           16,771,874      16,322,962
             Total stockholders' equity         32,602,007      32,006,480

                                               $57,686,201     $54,846,192



             DIALYSIS CORPORATION OF AMERICA AND SUBSIDIARIES
                       SUPPLEMENTAL OPERATING DATA
                               (Unaudited)

                           Three Months Ended March 31,   Quarter-to-Quarter
                                 2008           2007          Change %
  Operating data:
  Treatments:
      Consolidated             65,321         56,847           14.9%
      Managed                      --          2,690         (100.0)%
  Total treatments             65,321         59,537            9.7%

  Patient revenue per
   treatment                  $309.17        $291.96            5.9%

  Same center growth data:
      Same center treatment
       growth                       5%             9%
      Same center revenue per
        treatment change            9%             1%
      Same center patient
       revenue growth              15%            10%


                              1st Quarter     4th Quarter
                                 2008           2007
  Key clinical metrics:
    Treatment adequacy
     (% of pts with Kt/V
      greater than 1.2)          96.3%          95.4%
    Anemia management
     (% of pts with Hgb
      greater than 11)           80.2%          78.7%
    Venous access (% of pts
      with AVF)                  55.4%          53.0%

Source: Dialysis Corporation of America