Highlights:
    -- Same market growth of 30% for fourth-quarter
    -- Fourth quarter operating margin improvement of 330 basis points
    -- Q4 EPS $0.17 vs. $0.09, an 89% increase
    -- 1998 EPS $0.54 vs. $0.10, a 440% increase

    HOUSTON, March 5 /PRNewswire/ -- Castle Dental Centers (Nasdaq: CASL), one
of the largest dental management companies in the U.S., today announced that
solid organic growth drove patient revenues and net income for the fourth
quarter and year ended December 31, 1998.

    Fourth Quarter Results
    Patient revenues rose 55 percent for the fourth quarter to $20.4 million
from $13.2 million for the fourth quarter of 1997.  Operating income for the
quarter increased to $2.1 million for the quarter compared with $942,000 for
the same quarter last year.  Net income for the quarter was $1.1 million, or
$0.17 per share (diluted) compared with $522,000, or $0.09 per share
(diluted), for the prior year period.

    Year-End Results
    The company reported a 62 percent increase in 1998 patient revenues to
$74.8 million from $46.2 million for 1997.  Operating income for 1998 rose
108 percent to $6.9 million from $3.3 million for 1997.  Net income was
$3.6 million, or $0.54 per share (diluted), for 1998 compared with a net
income before an extraordinary item of $411,000, or $0.10 per share (diluted)
for 1997.  Commenting on the strong results for the quarter and the 1998 year,
Chairman and Chief Executive Officer, Jack Castle, Jr., said, "We are pleased
with our fourth-quarter and year-end results.  During the year, we acquired
36 dental centers and opened 10 de novo centers.  Our excellent performance
for the year can be attributed to the favorable leveraging of our regional
infrastructure and advertising expenditures, the continued implementation of
our standard operating model and management processes through our dental
networks, and the full integration of our management information systems in
the practice management and accounting functions."
    "Going forward, we intend to slow down the pace of acquisitions in 1999
and focus on building market mass through the development of de novo centers.
We plan to open at least 25 de novo centers in 1999.  Ten new dental centers
will be opened by the end of the first quarter 1999.  We will balance our
expansion plans by targeting opportunistic acquisitions that are accretive and
build market mass in existing markets.  We believe that this strategy will
position us for profitable growth over the long term.
    "We are currently in the process of closing the expansion of our credit
facility to $55 million from $47.5 million.  Our financial position remains
strong and we have the capital necessary to execute our growth strategies.  We
remain optimistic about our future as we continue to build the solid
foundation necessary to successfully develop a fully integrated dental
network," concluded Castle.
    Castle Dental Centers, Inc. develops, manages and operates integrated
dental networks through contractual affiliations with general, orthodontic and
multi-specialty dental practices in the U.S.  Castle manages 91 dental centers
with 235 affiliated dentists in Texas, Florida, Tennessee and California with
annualized patient revenues of approximately $100 million.
    Information contained in this press release, other than historical
information, may be considered forward-looking in nature and is subject to
various risks, uncertainties and assumptions.  Among the key factors that may
have a direct bearing on the Company are fluctuations in the economy, the
degree and nature of competitions and the demand for the Company's services,
changes in laws and regulations affecting the Company's business, the
Company's inability at any time to complete acquisitions and integrate the
operations of acquired businesses, and numerous other factors discussed in
Castle Dental's filings with the Securities and Exchange Commission.
    Table to Follow

                            CASTLE DENTAL CENTERS, INC.
                       Consolidated Statements of Operations
                       (in thousands, except per share data)

                               Three Months Ended     Twelve Months Ended
                                  December 31             December 31,
                                1998       1997        1998        1997

    Net patient revenues     $20,427     $13,172     $74,823    $46,225

    Expenses:
      Dentist salaries and
       other professional      5,069       3,478      18,516     11,325
       costs
      Clinical salaries        4,581       2,920      16,612     10,248
      Dental supplies and      1,918       1,288       7,197      4,335
       laboratory fees
      Rent and lease expense   1,231         692       4,091      2,590
      Advertising and
       marketing                 789         482       2,763      2,033
      Depreciation and
       amortization              982         650       3,615      2,132
      Other operating
       expenses                1,780       1,389       6,976      4,314
      General and
       administrative          1,931       1,331       8,145      5,929
        Total expenses        18,281      12,230      67,915     42,906

    Operating income           2,146         942       6,908      3,319

    Interest expense             711         203       1,889      2,792

    Other income                  (7)        (51)        (57)       (84)

    Income before income
      taxes and extraordinary
      item                     1,442         790       5,076        611

    Provision for income taxes   320         268       1,490        200

    Net income before         $1,122        $522      $3,586       $411
      extraordinary item

    Extraordinary item             -           -           -     (3,195)

    Net income (loss)          1,122         522       3,586     (2,784)

    Preferred stock accretion      -           -           -     (1,930)

    Income (loss)
      attributable to
      common stock            $1,122        $522      $3,586    $(4,714)

    Income (loss) per common
      share:
      Basic and diluted
       Income (loss) before
        extraordinary item      0.17        0.09        0.54       0.10
       Extraordinary item          -           -           -      (0.78)
       Net income              $0.17       $0.09       $0.54     $(0.68)(a)
    Weighted average number
      of common and common
      equivalent shares
      outstanding
       Basic               6,742,000   6,060,000   6,586,000  4,100,000
       Diluted             6,754,000   6,081,000   6,608,000  4,132,000


        (a) Per share information differs from loss attributable to common
    stock divided by weighted average number of common and common equivalent
    shares outstanding because accretion of the preferred stock is added back
    to the loss attributable to common stock under the if-converted method of
    arriving at common and common equivalent shares outstanding.

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