Second Quarter Highlights:
    -- Second-quarter net patient revenue jumped 30% to $25.7 million
    -- Second-quarter operating income increased 50% to $2.6 million
    -- Second-quarter operating margin improved by 130 basis points
    -- Q2 EPS $0.14, before one-time non-recurring charge
    -- Q2 EPS $0.02, after one-time non-recurring charge
    -- Same market growth of 21% for second-quarter

    HOUSTON, Aug. 4 /PRNewswire/ -- Castle Dental Centers (Nasdaq: CASL), one
of the largest dental management companies in the U.S., citing higher revenues
and continued operating expense improvements, announced increased operating
income for the second quarter ended June 30, 1999.

    Second Quarter Results
    For the second quarter ended June 30, 1999, patient revenues rose 30
percent to $25.7 million from $19.7 million for the same quarter a year ago.
Operating income for the quarter increased 50 percent to $2.6 million for the
quarter compared with $1.7 million for the same quarter last year.  Net income
for the quarter, before a one-time non-recurring charge, was $940,000, or
$0.14 per share (diluted) compared with $781,000 or $0.12 per share (diluted),
for the prior year period.
    During the second quarter the company recognized a one time non-recurring
charge of $1.4 million to settle litigation relating to the purchase of a
group dental practice completed prior to the company's initial public
offering.  Commenting on the settlement, Chairman and Chief Executive Officer,
Jack H. Castle, Jr., said, "Castle decided to settle the outstanding lawsuit
for an amount that was a fraction of what the plaintiff sought.  By settling
the dispute we avoided the risk of an unreasonably high jury award and saved
considerable legal, accounting, and expert witness fees."

    Six Month Results
    For the six-month period ended June 30, 1999, patient revenue was
$50.8 million, up 49 percent from $34.2 million for the comparable period in
1998.  Operating income for the period jumped 87 percent to $5.2 million
compared with $2.8 million for the same period a year ago.  Net income for the
six month period, before the one time non recurring charge, was $1.9 million,
or $0.28 per share (diluted), compared with net income of $1.4 million, or
$0.22 per share (diluted), for the same period last year.

    1999 Outlook
    Jack H. Castle, Jr., chairman and chief executive officer, commented, "Our
second-quarter earnings were slightly lower than expected.  This was
attributed primarily to two factors.  First, a Florida acquisition made in
mid-1998 under performed this quarter.  The revenues from these offices were
well below our internal plan.  Second, during the quarter we converted the
practice management systems in our California offices to our standard company
platform and implemented our management processes in this region.  We remain
confident about the Florida region as we have addressed the issues affecting
the under performing offices and have a solid base business in that market.
With the completion of the systems conversion in California, we expect that
region to realize improved operating results in the second half of 1999.
    "Due to the increases in patient revenues, largely resulting from de novo
development and acquisitions, and our continued focus on expense control
disciplines, our operating margin improved by 130 basis points to 10.0 percent
from 8.7 percent in the second quarter of 1998.
    "We continue to remain optimistic about our long-term prospects.  Our
stated goal to increase market share, primarily through de novo development,
is on the right track.  During the first half of 1999 we opened 11 new
centers.  We firmly believe that focusing on de novo development is the right
strategy to continue to build shareholder value over the long-term.  This
strategy will reduce our dependence on acquisitions for revenue growth while
maintaining our internal growth objectives.  By the end of the year, we expect
to complete our previously stated goal of opening 25 de novo centers.
    "The integration of our dental centers is proceeding smoothly and
continues to result in a much leaner company.  We have completed the
conversion of our practice management systems to a common company wide
platform.  Most importantly, we believe that we are well positioned for the
remainder of the year and remain confident in our prospects for continued
growth," 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 97 dental centers
with approximately 240 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.
    For more information regarding Castle Dental Centers, Inc., free of
charge, dial 1-800-PRO-INFO and enter "CASL."

                         CASTLE DENTAL CENTERS, INC.
                    CONSOLIDATED STATEMENTS OF OPERATIONS
                    (In Thousands, Except Per Share Data)

                                 Three Months Ended       Six Months Ended
                                      June 30,                June 30,
                                  1999          1998       1999        1998

    Net patient revenues         $25,661     $19,679      $50,828    $34,220

    Expenses:
     Dentist salaries and other
      professional costs           6,947       4,538       13,545      8,285
     Clinical salaries             5,444       4,447       10,773      7,638
     Dental supplies and
      laboratory fees              2,185       1,973        4,479      3,291
     Rent and lease expense        1,483         996        2,930      1,755
     Advertising and marketing       947         800        1,761      1,394
     Depreciation and
      amortization                 1,443         987        2,856      1,608
     Other operating expenses      2,146       1,962        4,370      3,340
     General and administrative    2,501       2,263        4,910      4,121



       Total expenses             23,096      17,966       45,624     31,432

    Operating income               2,565       1,713        5,204      2,788

    Litigation settlement          1,366          --        1,366         --
    Interest expense               1,023         551        2,016        675
    Other expense (income), net        1          (3)           2        (26)

    Income before income taxes       175       1,165        1,820      2,139

    Provision for income taxes        68         384          710        696

    Net income                      $107        $781       $1,110     $1,443

    Income per common share:
      Basic and diluted            $0.02       $0.12        $0.16      $0.22

    Weighted average number
     of common and common
     equivalent shares
     outstanding
      Basic                        6,825       6,660        6,825      6,448
      Diluted                      6,896       6,704        6,885      6,461

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