Improving Health, Health Care and Quality of Life

DaVita 3rd Quarter 2007 Results
PRNewswire-FirstCall
EL SEGUNDO, Calif.

DaVita Inc. , today announced results for the quarter ended September 30, 2007. Income from continuing operations for the three and nine months ended September 30, 2007 was $94.5 million and $296.1 million, or $0.88 and $2.76 per share, respectively.

(Logo: http://www.newscom.com/cgi-bin/prnh/20020729/DAVITALOGO)

Income from continuing operations for the three months ended September 30, 2007 excluding after-tax gains from insurance settlements and after-tax gains on the sale of investment securities was $89.3 million, or $0.83 per share, as compared with $69.9 million, or $0.66 per share, for the same period of 2006.

Income from continuing operations for the nine months ended September 30, 2007 excluding after-tax gains from insurance settlements, the after-tax valuation gain on the Company's product supply agreement with Gambro Renal Products and after-tax gains on the sale of investment securities was $254.6 million, or $2.38 per share, as compared with $192.0 million or $1.82 per share for the same period of 2006.

  Financial and operating highlights include:
  *  Cash Flow:  For the rolling 12-months ended September 30, 2007
     operating cash flow was $500 million and free cash flow was
     $396 million.  For the three months ended September 30, 2007, operating
     cash flow was $96 million and free cash flow was $74 million.
  *  Operating Income:  Operating income for the three months ended
     September 30, 2007 was $212 million including pre-tax gains from
     insurance settlements of $6.8 million, and was $206 million excluding
     these items. Operating income for the nine months ended September 30,
     2007 was $667 million including pre-tax gains from insurance
     settlements of $6.8 million, and the pre-tax valuation gain on the
     Company's product supply agreement with Gambro Renal Products of
     $55 million, and was $605 million excluding these items.
  *  Volume:  Total treatments for the third quarter of 2007 were 3,842,763
     or 49,266 treatments per day, as compared to 3,668,999 or 46,443
     treatments per day for the third quarter of 2006. Non-acquired
     treatment growth in the quarter was 5.2% over the prior year's third
     quarter.
  *  Center Activity:  As of September 30, 2007, we operated or provided
     administrative services at 1,344 outpatient dialysis centers serving
     approximately 106,500 patients, of which 1,307 centers are consolidated
     in our financial statements.  Of the remaining 37 centers, we own
     minority interests in 4 centers and provide administrative services to
     33 centers, in which we have no ownership interest. These 37 centers
     serve approximately 3,400 patients. In the fourth quarter of 2007, we
     will discontinue providing administrative services to 20 of these
     centers with approximately 2,300 patients. During the third quarter of
     2007, we acquired 6 centers, opened 18 new centers, closed one center,
     and provided administrative services to one additional center.
  *  Effective Tax Rate: We still expect the annual effective tax rate for
     2007 to be in the range of 39.0% - 40.0%.


  Outlook

Operating income for the fourth quarter of 2007 is expected to be in the range of $190-200 million. We are narrowing our operating income for 2007 to a range of $800-810 million. Our operating income guidance for 2008, excluding the impact of any potential Medicare legislation, is still projected to be in the range of $790-850 million, however, we believe at this time that operating income is more likely to be in the lower end of the range for 2008. We are entering into a period of unusual earnings uncertainty. Therefore the guidance range for 2008 does not capture as high a percentage of the potential outcomes as usual. These projections and the underlying assumptions involve significant risks and uncertainties, including those described below and actual results may vary significantly from these current projections.

DaVita will be holding a conference call to discuss its results for the third quarter ended September 30, 2007 on November 1, 2007 at 5PM Eastern Time. The dial in number is (800)-399-4406. A replay of the conference call will be available on DaVita's official web page, www.davita.com, for the following 30 days.

This release contains forward-looking statements, including statements related to our 2007 and 2008 operating results. Factors which could impact future results include the uncertainties associated with governmental regulations, general economic and other market conditions, accounting estimates and the risk factors set forth in the Company's SEC filings, including its Form 10-Q for the quarter ended June 30, 2007. The forward- looking statements should be considered in light of these risks and uncertainties.

  These risks and uncertainties include those relating to:

  *  the concentration of profits generated from commercial payor plans,
  *  possible reductions in private and government payment rates,
  *  changes in the structure of and payment rates under the Medicare ESRD
     Program which may further reduce Medicare payment rates,
  *  changes in pharmaceutical or anemia management practice patterns,
     payment policies, or pharmaceutical pricing,
  *  our ability to maintain contracts with physician medical directors,
  *  legal compliance risks, including our continued compliance with complex
     government regulations and DVA Renal Healthcare's compliance with its
     corporate integrity agreement,
  *  the resolution of ongoing investigations by various federal and state
     governmental agencies, and
  *  the successful integration of DVA Renal Healthcare's billing and
     collection operations.


We undertake no obligation to update or revise any forward-looking statements, whether as a result of changes in underlying factors, new information, future events or otherwise.

This release contains non-GAAP financial measures. For reconciliations of these non-GAAP financial measures to their most comparable measure calculated and presented in accordance with GAAP, see the attached reconciliation schedules.

                                 DAVITA INC.
                      CONSOLIDATED STATEMENTS OF INCOME
                                 (unaudited)
                (dollars in thousands, except per share data)

                         Three months ended         Nine months ended
                            September 30,              September 30,
                          2007         2006         2007        2006
  Net operating
   revenues           $1,318,381   $1,237,041   $3,909,282   $3,608,045
  Operating expenses
   and charges:
    Patient care costs   890,243      857,049    2,662,841    2,517,795
    General and
     administrative      120,596      113,447      356,249      329,059
    Depreciation and
     amortization         49,230       44,478      142,078      128,086
    Provision for
     uncollectible
     accounts             34,107       31,985      101,686       93,295
    Minority interests
     and equity income,
     net                  11,793       10,956       34,757       26,857
    Valuation gain on
     Alliance and Product
     Supply Agreement          -      (37,968)     (55,275)     (37,968)
      Total operating
       expenses and
       charges         1,105,969    1,019,947    3,242,336    3,057,124

  Operating income       212,412      217,094      666,946      550,921

  Debt expense           (62,715)     (67,904)    (194,496)    (206,799)
  Other income             6,278        3,271       17,131       10,118
  Income from continuing
   operations before
   income taxes          155,975      152,461      489,581      354,240
  Income tax expense      61,520       59,370      193,520      139,040
      Income from
       continuing
       operations         94,455       93,091      296,061      215,200
  Discontinued operations
      Gain on disposal
       of discontinued
       operations,
       net of tax              -        1,765            -          362
  Net income             $94,455      $94,856     $296,061     $215,562

  Earnings per share:
    Basic earnings per
     share from
     continuing
     operations            $0.89        $0.90        $2.80        $2.08
    Basic earnings per
     share                 $0.89        $0.91        $2.80        $2.09
    Diluted earnings
     per share from
     continuing
     operations            $0.88        $0.88        $2.76        $2.04
    Diluted earnings
     per share             $0.88        $0.90        $2.76        $2.04
    Weighted average
     shares for
     earnings
     per share:
      Basic          106,171,473  103,784,510  105,558,536  103,295,407
      Diluted        107,561,139  105,923,976  107,129,135  105,643,406



                                 DAVITA INC.
                    CONSOLIDATED STATEMENTS OF CASH FLOWS
                                 (unaudited)
                            (dollars in thousands)

                                                     Nine months ended
                                                       September 30,
                                                    2007           2006
  Cash flows from operating activities:
  Net income                                      $296,061       $215,562
  Adjustments to reconcile net income to cash
   provided by operating activities:
    Depreciation and amortization                  142,078        128,086
    Valuation gain on Alliance and
     Product Supply Agreement                      (55,275)       (37,968)
    Stock-based compensation expense                25,260         18,896
    Tax benefits from stock award exercises         27,000         29,261
    Excess tax benefits from stock award
     exercises                                     (23,632)       (27,146)
    Deferred income taxes                           25,645          1,249
    Minority interests in income of
     consolidated subsidiaries                      35,703         28,812
    Distributions to minority interests            (35,216)       (25,552)
    Equity investment income                          (946)        (1,955)
    (Gain) loss on disposal of discontinued
     operations and other dispositions              (4,944)           508
    Non-cash debt and non-cash rent charges         11,810         13,562
  Changes in operating assets and liabilities,
   net of effect of acquisitions and divestitures:
    Accounts receivable                            (32,425)       (46,135)
    Inventories                                     15,144        (29,118)
    Other receivables and other current assets     (42,818)       (18,155)
    Other long term assets                         (11,921)        (5,329)
    Accounts payable                                (6,458)        16,557
    Accrued compensation and benefits              (17,347)        67,889
    Other current liabilities                      (26,151)        63,643
    Income taxes                                   (13,072)       (65,924)
    Other long-term liabilities                      1,214          2,720
      Net cash provided by operating activities    309,710        329,463
  Cash flows from investing activities:
    Purchase of investments                        (42,202)             -
    Additions of property and equipment, net      (176,078)      (181,425)
    Acquisitions and purchases of other
     ownership interests                           (81,782)       (75,580)
    Proceeds from divestitures and asset sales       4,643         21,348
    Proceeds from sale and maturities of
     investments                                    36,918              -
    Investments in and advances to affiliates,
     net                                            16,204         14,605
    Purchase of intangible assets                     (556)        (5,749)
      Net cash used in investing activities       (242,853)      (226,801)
  Cash flows from financing activities:
    Borrowings                                  10,405,556      4,493,339
    Payments on long-term debt                 (10,451,891)    (4,826,163)
    Deferred financing costs                        (4,462)           296
    Purchase of treasury stock                      (6,350)             -
    Excess tax benefits from stock award
     exercises                                      23,632         27,146
    Stock award exercises and other share
     issuances, net                                 47,756         31,187
      Net cash provided by (used in)
       financing activities                         14,241       (274,195)
  Net increase (decrease) in cash and cash
   equivalents                                      81,098       (171,533)
  Cash and cash equivalents at beginning
   of period                                       310,202        431,811
  Cash and cash equivalents at end of period      $391,300       $260,278



                                 DAVITA INC.
                         CONSOLIDATED BALANCE SHEETS
                                 (unaudited)
                (dollars in thousands, except per share data)

                                               September 30, December 31,
                                                    2007         2006

                              ASSETS
  Cash and cash equivalents                       $391,300       $310,202
  Short-term investments                            22,177          4,734
  Accounts receivable, less allowance of
   $193,644 and $171,757                           976,285        932,385
  Inventories                                       75,611         89,119
  Other receivables                                186,282        148,842
  Other current assets                              27,653         25,124
  Deferred income taxes                            241,212        199,090
      Total current assets                       1,920,520      1,709,496
  Property and equipment, net                      894,164        849,966
  Amortizable intangibles, net                     185,761        203,721
  Investments in third-party dialysis businesses     2,227          1,813
  Long-term investments                              7,844         13,174
  Other long-term assets                            42,097         45,793
  Goodwill                                       3,728,822      3,667,853
                                                $6,781,435     $6,491,816

         LIABILITIES AND SHAREHOLDERS' EQUITY
  Accounts payable                                $245,976       $251,686
  Other liabilities                                444,196        473,219
  Accrued compensation and benefits                322,289        341,766
  Current portion of long-term debt                  9,711         20,871
  Income taxes payable                              19,408         24,630
      Total current liabilities                  1,041,580      1,112,172
  Long-term debt                                 3,695,586      3,730,380
  Other long-term liabilities                       59,310         50,076
  Alliance and product supply agreement             42,640        105,263
  Deferred income taxes                            167,035        125,642
  Minority interests                               148,018        122,359
  Commitments and contingencies
  Shareholders' equity:
    Preferred stock ($0.001 par value,
     5,000,000 shares authorized; none issued)
    Common stock ($0.001 par value, 450,000,000
     shares authorized; 134,862,283 shares
     issued; 106,658,297 and 104,636,608 shares
     outstanding)                                      135            135
    Additional paid-in capital                     688,590        630,091
    Retained earnings                            1,429,573      1,129,621
    Treasury stock, at cost (28,203,986 and
     30,225,675 shares)                           (496,042)      (526,920)
    Accumulated other comprehensive income           5,010         12,997
      Total shareholders' equity                 1,627,266      1,245,924
                                                $6,781,435     $6,491,816



                                 DAVITA INC.
                         SUPPLEMENTAL FINANCIAL DATA
                                 (unaudited)
      (dollars in millions, except for per share and per treatment data)

                                                              Nine months
                                       Three months ended         ended
                               Sept. 30,  June 30,   Sept. 30,  Sept. 30,
                                 2007       2007       2006       2007

  Financial Results excluding
   gains from insurance
   settlements, the valuation
   gain on the product supply
   agreement and gains on sale
   of investment securities:
    Income from continuing
     operations (1)              $89.3      $88.7      $69.9      $254.6
    Net income (1)               $89.3      $88.7      $71.7      $254.6
    Diluted earnings per
     share from continuing
     operations                  $0.83      $0.83      $0.66       $2.38
    Diluted earnings per
     share                       $0.83      $0.83      $0.68       $2.38
    Operating income (1)        $205.6     $205.9     $179.1      $604.9
      Operating income
       margin                    15.6%      15.7%      14.5%       15.5%
  Other comprehensive income
      Unrealized loss on
       securities, net of tax
       benefit of $5.1, $0.5,
       $6.6 and $5.1            $(8.0)     $(0.8)    $(10.3)      $(8.0)

  Business Metrics:
    Volume
      Treatments             3,842,763  3,792,419  3,668,999  11,335,453
      Number of treatment
       days                       78.0       78.0       79.0       233.4
      Treatments per day        49,266     48,621     46,443      48,567
      Per day year over year
       increase                   6.1%       5.3%      90.2%        5.5%
      Non-acquired growth
       year over year             5.2%       4.6%       4.2%        4.8%

  Revenue
      Total operating revenue   $1,318     $1,313     $1,237      $3,909
      Dialysis revenue per
       treatment, including
       the lab                 $333.57    $337.94    $331.48     $336.42
      Per treatment (decrease)
       increase from previous
       quarter                   (1.3%)     0.03%       0.7%           -
      Per treatment increase
       from previous year         0.6%       2.7%       1.4%        2.2%

  Expenses
  A.  Patient care costs
      Percent of revenue         67.5%      67.9%      69.3%       68.1%
      Per treatment            $231.67    $234.95    $233.59     $234.91
      Per treatment decrease
       from previous quarter     (1.4%)     (1.4%)     (0.2%)          -
      Per treatment (decrease)
       increase from previous
       year                      (0.8%)      0.4%       3.5%        0.5%
      Per treatment (excluding
       gains from insurance
       settlements of $1.76
       and $0.60 for the
       third quarter and nine
       months ended
       September 30, 2007,
       respectively)           $233.43          -          -     $235.51

  B.  General & administrative
       expenses
      Percent of revenue          9.1%       9.3%       9.2%        9.1%
      Per treatment             $31.38     $32.28     $30.92      $31.43
      Per treatment (decrease)
       increase from previous
       quarter                   (2.8%)      5.5%     (0.03%)          -
      Per treatment increase
       (decrease) from
       previous year              1.5%       4.4%      (1.9%)       2.9%

  C.  Bad debt expense as a
       percent of current-period
       revenue                    2.6%       2.6%       2.6%        2.6%

  D.  Consolidated effective
       tax rate from
       continuing operations     39.4%      39.3%      38.9%       39.5%

  (1)  These are non-GAAP financial measures. For a reconciliation of these
       non-GAAP financial measures to their most comparable measure
       calculated and presented in accordance with GAAP, see attached
       reconciliation schedules.



                                 DAVITA INC.
                    SUPPLEMENTAL FINANCIAL DATA-continued
                                 (unaudited)
      (dollars in millions, except for per share and per treatment data)


                                                              Nine months
                                       Three months ended         ended
                               Sept. 30,   June 30,  Sept. 30,  Sept. 30,
                                 2007       2007       2006       2007

  Cash Flow
    Operating cash flow          $95.8     $125.9      $96.9      $309.7
    Operating cash flow,
     last twelve months         $499.8     $501.0     $512.8          $-
    Free cash flow (1)           $73.5     $101.7      $67.4      $236.7
    Free cash flow, last
     twelve months (1)          $395.6     $389.5     $403.2          $-
    Capital expenditures:
      Development and
       relocations               $48.5      $30.8      $35.1      $101.9
      Routine maintenance/
       IT/other                  $22.6      $24.7      $31.5       $74.2
    Acquisition expenditures     $75.5       $6.1       $6.0       $81.8

  Accounts Receivable
    Net receivables               $976       $960       $903
    DSO                             70         69         70

  Debt/Capital Structure
    Total debt, excluding debt
     premium of $5 million      $3,701     $3,703     $3,825
    Net debt, net of cash,
     excluding debt premium
     of $5 million              $3,309     $3,306     $3,564
    Leverage ratio (see Note 1)  3.10x      3.23x      3.96x

  Clinical (quarterly averages)
    Dialysis adequacy -
     % of patients with
     Kt/V > 1.2                  93.6%      93.4%      93.3%
  Patients with albumin
   greater than or equal
   to 3.5                        82.9%      83.8%      83.7%
  Patients with HCT greater
   than or equal to 33           82.8%      83.8%      84.3%

  (1)  These are non-GAAP financial measures. For a reconciliation of these
       non-GAAP financial measures to their most comparable measure
       calculated and presented in accordance with GAAP, see attached
       reconciliation schedules.



                               DAVITA INC.
                  SUPPLEMENTAL FINANCIAL DATA-continued
                               (unaudited)
                          (dollars in thousands)

  Note 1: Calculation of the Leverage Ratio

  Under the Company's current Senior Secured Credit Facilities (Credit
  Agreement), the leverage ratio is defined as all funded debt plus the face
  amount of all letters of credit issued, minus cash and cash equivalents,
  divided by "Consolidated EBITDA". The leverage ratio determines the
  interest rate margin payable by the Company for its term loan A and
  revolving line of credit under the Credit Agreement by establishing the
  margin over the base interest rate (LIBOR) that is applicable. The
  following leverage ratio was calculated using "Consolidated EBITDA" as
  defined in the Credit Agreement.  The calculation below is based on the
  last twelve months of "Consolidated EBITDA", pro forma for the routine
  acquisitions that occurred during the period. The Company's management
  believes that the presentation of "Consolidated EBITDA" is useful to
  investors to enhance their understanding of the Company's leverage ratio
  under its Credit Agreement.


                                                        Rolling 12-months
                                                       ended September 30,
                                                              2007

  Income from continuing operations                              $370,190
  Income taxes                                                    240,910
  Debt expense including the write-off of deferred
   financing costs                                                264,223
  Depreciation and amortization                                   187,287
  Minority interests and equity income, net                        43,733
  Valuation gain on Product Supply Agreement                      (55,275)
  Other                                                              (147)
  Stock-based compensation expense                                 32,753
    "Consolidated EBITDA"                                      $1,083,674


                                                            September 30,
                                                                2007

  Total debt, excluding debt premium of $5 million             $3,700,638
  Letters of credit issued                                         50,131
                                                                3,750,769
  Less: cash and cash equivalents                                (391,300)
  Consolidated net debt                                        $3,359,469
  Last twelve months "Consolidated EBITDA"                     $1,083,674
  Leverage ratio                                                    3.10x



  In accordance with the Company's Credit Agreement, the Company's leverage
  ratio cannot exceed 5.50 to 1.0 as of September 30, 2007. At that date,
  the Company's leverage ratio did not exceed 5.50 to 1.0.


                  RECONCILIATIONS FOR NON-GAAP MEASURES
                               (unaudited)
                          (dollars in thousands)

  1.  Income from continuing operations and net income excluding gains from
  insurance settlements, the valuation gain on the product supply agreement
  and gains on the sale of investment securities:

  Income from continuing operations and net income excluding gains from
  insurance settlements, the valuation gain on the product supply agreement
  and gains on the sale of investment securities held by us, excludes
  certain unusual or non-recurring items in order to present a measure of
  income from continuing operations and net income that is more reflective
  of the normal day-to-day operations of our business. Gains from insurance
  settlements relates to insurance proceeds from Hurricane Katrina and from
  a fire that destroyed one of our centers. The valuation gain on the
  product supply agreement with Gambro Renal Products reflects a non-
  recurring, non-cash item that resulted from the modification of the
  product supply agreement, which resulted in the termination of our
  obligation to purchase dialysis machines from Gambro Renal Products Inc.
  under that agreement. Gains on the sale of investment securities related
  to the sale of our common stock in NxStage. We believe that the exclusion
  of each of these items enhances a user's understanding of our normal
  operations and performance and that the adjusted amounts of income from
  continuing operations and net income are more comparable to prior periods
  and therefore more indicative of our performance for purposes of period
  over period comparison. Our management eliminates these items when
  evaluating our operating performance. These measures are not measures of
  financial performance under United States generally accepted accounting
  principles and should not be considered as an alternative to income from
  continuing operations and net income.


                             Three months ended       Nine months ended
                      Sept. 30,  June 30,  Sept. 30,  Sept. 30, Sept. 30,
                         2007      2007       2006      2007      2006
  Income from
   continuing
   operations          $94,455   $125,024   $93,091   $296,061  $215,200
  Less: Gains on
         insurance
         settlements    (6,779)         -         -     (6,779)        -
        Valuation
         gain                -    (55,275)  (37,968)   (55,275) (37,968)
        Gain on the
         sale of
         investment
         securities     (1,634)    (4,234)        -     (5,868)       -
  Add: Related
   income tax            3,273     23,149    14,770     26,422    14,770
                       $89,315    $88,664   $69,893   $254,561  $192,002


  Net income           $94,455   $125,024   $94,856   $296,061  $215,562
  Less: Gains on
         insurance
         settlements    (6,779)         -         -     (6,779)        -
        Valuation
         gain                -    (55,275)  (37,968)   (55,275) (37,968)
        Gain on the
         sale of
         investment
         securities     (1,634)    (4,234)        -     (5,868)        -

  Add: Related
   income tax            3,273     23,149    14,770     26,422    14,770
                       $89,315    $88,664   $71,658   $254,561  $192,364



                    RECONCILIATIONS FOR NON-GAAP MEASURES
                                 (unaudited)
                            (dollars in thousands)

  2.  Operating income excluding pre-tax gains from insurance settlements,
  and the pre-tax valuation gain on the product supply agreement:

  Operating income excluding gains from insurance settlements, and the
  valuation gain on the product supply agreement, excludes certain unusual
  or non-recurring items in order to present a measure of operating income
  that is more reflective of the normal day-to-day operations of our
  business. Gains from insurance settlements relates to insurance proceeds
  from Hurricane Katrina and from a fire that destroyed one of our centers.
  The valuation gain on the product supply agreement with Gambro Renal
  Products reflects a non-recurring non-cash item that resulted from the
  modification of the product supply agreement, which resulted in the
  termination of our obligation to purchase dialysis machines from Gambro
  Renal Products Inc. under that agreement. We believe that the exclusion of
  each of these items enhances a user's understanding of our normal
  operations and performance and that the adjusted amount of operating
  income is more comparable to prior periods and therefore more indicative
  of our performance for purposes of period over period comparison. Our
  management eliminates these items when evaluating our operating
  performance. These measures are not measures of financial performance
  under United States generally accepted accounting principles and should
  not be considered as an alternative to income from continuing operations
  and net income.


                                                            Nine months
                               Three months ended              ended
                       Sept. 30,    June 30,    Sept. 30,    Sept. 30,
                          2007         2007        2006         2007

  Operating income      $212,412    $261,217     $217,094    $666,946
  Less: Gains from
         insurance
         settlements      (6,779)          -            -      (6,779)
        Valuation gain         -     (55,275)     (37,968)    (55,275)
                        $205,633    $205,942     $179,126    $604,892


  3. Free cash flow

  Free cash flow represents net cash provided by operating activities less
  capital expenditures for routine maintenance and information technology.
  We believe free cash flow is a useful adjunct to cash flow from operating
  activities and other measurements under United States generally accepted
  accounting principles, since free cash flow is a meaningful measure of our
  ability to fund acquisition and development activities and meet our debt
  service requirements. Free cash flow is not a measure of financial
  performance under United States generally accepted accounting principles
  and should not be considered as an alternative to cash flows from
  operating, investing or financing activities, as an indicator of cash
  flows or as a measure of liquidity.


                                                            Nine months
                                 Three months ended           ended
                        Sept. 30,   June 30,     Sept. 30,   Sept. 30,
                          2007       2007         2006         2007
  Cash provided by
   operating activities  $95,778    $125,901      $96,937    $309,710
  Less: Expenditures for
   routine maintenance
   and information
   technology            (22,229)    (24,157)     (29,551)    (72,975)
  Free cash flow         $73,549    $101,744      $67,386    $236,735


                                      Rolling 12-Month Period
                               September 30,   June 30,    September 30,
                                   2007          2006          2007
  Cash provided by
   operating activities          $499,818      $500,977      $512,807
  Less: Expenditures for
   routine maintenance
   and information technology    (104,189)     (111,511)     (109,652)
  Free cash flow                 $395,629      $389,466      $403,155

First Call Analyst:
FCMN Contact: LeAnne.Zumwalt@davita.com

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.

CONTACT: LeAnne Zumwalt, Investor Relations, of DaVita Inc.,
+1-650-696-8910


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