Improving Health, Health Care and Quality of Life

/C O R R E C T I O N -- DaVita Inc./
PRNewswire

In the news release, DaVita 4th Quarter 2005 Results, issued earlier today by DaVita Inc. over PR Newswire, in the second table, "CONSOLIDATED STATEMENTS OF CASH FLOWS," on the 38th line, "Purchase of treasury stock," the number "(96,540)" should be under the 2004 column heading rather than the 2005 column heading as incorrectly transmitted by PR Newswire. The corrected table is below:

                               DAVITA INC.
                  CONSOLIDATED STATEMENTS OF CASH FLOWS
                               (unaudited)
                          (dollars in thousands)
                                                         Years ended
                                                           Dec. 31,
                                                      2005           2004
  Cash flows from operating activities:
  Net income                                      $228,643       $222,254
  Adjustments to reconcile net
   income to cash provided by
   operating activities:
     Depreciation and amortization                 119,719         86,666
     Stock options, principally tax benefits        41,837         42,770
     Deferred income taxes                        (63,357)         29,115
     Minority interests in income of
      consolidated subsidiaries                     24,714         15,135
     Distributions to minority interests          (16,246)       (10,461)
     Equity investment income                      (1,406)        (1,441)
     Loss on other divestitures                        921            764
     Gain on discontinued operations              (16,777)
     Non-cash debt expense                           5,157          2,088
     Refinancing charges                             8,170
     Swap valuation gains                          (4,548)
  Changes in operating assets and
   liabilities, net of effect of
   acquisitions and divestitures:
     Accounts receivable and other
      receivables                                 (62,021)       (59,263)
     Medicare lab recoveries                                       19,000
     Inventories                                    11,980          4,257
     Other current assets                            1,893          (381)
     Other long term assets                        (2,039)          3,345
     Accounts payable                               28,869         17,764
     Accrued compensation and benefits              21,664         32,899
     Other current liabilities                      72,615         42,784
     Income taxes                                   90,958       (25,995)
     Other long-term liabilities                   (5,192)        (1,355)
        Net cash provided by operating
         activities                                485,554        419,945
  Cash flows from investing activities:
     Additions of property and equipment, net    (161,365)      (128,328)
     Acquisitions                              (3,196,395)      (266,265)
     Proceeds from divestitures                    297,784          1,223
     Investments in and advances to
      affiliates, net                               15,364         14,344
     Intangible assets                               (751)          (635)
        Net cash used in investing
         activities                            (3,045,363)      (379,661)
  Cash flows from financing activities:
     Borrowings                                  6,832,557      4,444,160
     Payments on long-term debt                (4,058,951)    (4,236,861)
     Deferred financing costs                     (77,884)        (4,153)
     Purchase of treasury stock                                  (96,540)
     Stock option exercises                         43,919         43,432
     Net cash provided by financing
      activities                                 2,739,641        150,038
  Net increase in cash and cash
   equivalents                                     179,832        190,322
  Cash and cash equivalents at
   beginning of period                             251,979         61,657
  Cash and cash equivalents at end
   of period                                      $431,811       $251,979

PRNewswire-FirstCall -- Feb. 15

Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20020729/DAVITALOGO
AP Archive: http://photoarchive.ap.org/
PRN Photo Desk, photodesk@prnewswire.com

SOURCE: DaVita Inc.


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