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                                                                    EXHIBIT 99.1


                      [LETTERHEAD OF SUN HEALTHCARE GROUP]


                                                Contact: Phyllis Goodman (media)
                                                  Marjorie Goldstein (investors)
                                                                  (505) 821-3355


               SUN HEALTHCARE GROUP AND RETIREMENT CARE ASSOCIATES
                   EXTEND TERMINATION DATE OF MERGER AGREEMENT

         Albuquerque, N.M., and Atlanta, Ga., April 6, 1998 - Sun Healthcare
Group, Inc. (NYSE:SHG) and Retirement Care Associates, Inc. (NYSE:RCA) announced
today that they have amended the terms of their merger agreement. The principal
effect of the amendment is to extend the date after which either party may
freely terminate the RCA Merger Agreement from March 31, 1998 to June 30, 1998.
The amendment also adds as a condition to Sun's obligation to consummate the
Merger a requirement that a Memorandum of Understanding entered into in
connection with the settlement of certain shareholder litigation involving RCA
remain in effect. The boards of directors of Sun and of RCA have each approved
the merger agreement amendment.

         Sun originally entered into separate merger agreements with RCA and
Contour Medical, Inc. (Nasdaq SmallCap: CTMI) on Feb. 17, 1997. The parties
amended the terms of the RCA agreement on May 27, 1997, and both the RCA and the
Contour agreements on Aug. 21, 1997 and Nov. 25, 1997.

         RCA owns approximately 65 percent of the outstanding shares of Contour.
Sun's merger agreement with Contour has been amended to match the RCA amendment
in extending the date after which either party may freely terminate the
agreement from March 31, 1998 to June 30, 1998. The parties contemplate closing
both transactions in the second quarter of 1998.

         Closing of the transactions is subject to the satisfaction of customary
conditions. The RCA acquisition is intended to be accounted for as a pooling of
interests. The Contour acquisition is intended to be accounted for as a
purchase.

         Headquartered in Albuquerque, N.M., Sun Healthcare Group, Inc., is a
diversified international long-term care provider. Sun operates long-term and
subacute care facilities in the United States, the United Kingdom, Spain,
Australia and Germany. Sun also provides therapy and pharmacy services, medical
supplies and comprehensive ancillary services to the long-term care industry.



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         Atlanta, Ga.-based Retirement Care Associates, Inc. operates long-term
care, independent and assisted living facilities located primarily in the
southeastern United States. Contour Medical, Inc. is a national provider of
medical supplies for the long-term care industry.

         Except for historical information, all other matters in this press
release are forward-looking statements that involve risks and uncertainties as
detailed from time to time in the company's SEC filings, including Sun's annual
report on Form 10-K for the fiscal year ended Dec. 31, 1997.

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