[GENTLE DENTAL LETTERHEAD]

           GENTLE DENTAL AND DENTAL CARE ALLIANCE AGREE TO MERGE


         NEW COMPANY TO FEATURE MANAGEMENT STRENGTH, OPERATIONAL AND 
                 CLINICAL EXPERTISE AND ACQUISITION CAPITAL


EL SEGUNDO, CALIF., AND SARASOTA, FLA. (OCTOBER 16, 1998) -- Gentle Dental
Service Corporation (NASDAQ: GNTL) and Dental Care Alliance, Inc. (NASDAQ: 
DENT) today announced the signing of a definitive agreement to merge in a 
pooling-of-interests transaction. The merger combines two of the largest and 
fastest growing companies in the dental management service industry, each 
with 12-month revenue growth exceeding 100 percent, and will create a company 
with annualized net patient revenue under management of approximately $175 
million, operations in nine states, and 137 offices. The combined company 
will have significant resources to continue its consolidation strategy, 
including cash, cash equivalents and credit access of approximately $55 
million.

     Under the terms of the merger agreement, a yet unnamed holding company 
will be formed into which both companies will merge. The merger's implied 
exchange ratio for the stocks of Dental Care Alliance and Gentle Dental is 
approximately 1.67 to 1. Assuming conversion of all of Gentle Dental's 
preferred stock and convertible subordinated debt to common stock, the 
outstanding shares of the new company would be approximately 25.3 million, of 
which Gentle Dental's stockholders would own approximately 53.5 percent and 
Dental Care Alliance's stockholders would own approximately 46.5 percent. The 
deal is expected to be accretive to earnings of both companies in 1999. The 
transaction is subject to receipt of stockholder and applicable regulatory 
approval, among other conditions.

     Michael Fiore, Co-Chairman, President and Chief Executive Officer of 
Gentle Dental, will become Co-Chairman and Chief Executive Officer of the new 
company.

                                  -MORE-



GENTLE DENTAL & DENTAL CARE ALLIANCE
PAGE 2

Steven Matzkin, DDS. Chairman and Chief Executive Officer of Dental Care 
Alliance, will become Co-Chairman, President and Chief Dental Officer of 
the new company.

     "Gentle Dental and Dental Care Alliance have been operating under 
complementary business and patient-care philosophies, each placing primary 
importance on the role of the dentist," stated Mr. Fiore. "We believe our new 
company will have a strong presence within a growing marketplace, with a 
balance sheet, management team and development program that position us for 
expanded market leadership."

     Dr. Matzkin stated, "Through this transaction, we will combine the best 
components of two successful companies with the objective of creating an 
industry leader in terms of training and mentoring programs, administrative 
structure and MIS systems. Our goal will be to continue to deliver convenient, 
high-quality, comprehensive and cost-effective dental care through 
geographically concentrated networks in strategic markets. We believe our 
combination will benefit our stockholders, practitioners and their patients."

     Corporate headquarters for the new company will be in El Segundo, 
California with regional offices in Sarasota, Florida and Vancouver, 
Washington. In this transaction, Gentle Dental is represented by the 
investment banking firm Salomon Smith Barney, Inc. and Dental Care Alliance 
is represented by Raymond James & Associates, Inc.

     The dental management services industry continues to hold outstanding 
growth prospects. The dental care market is highly fragmented, consisting of 
an estimated 115,000 practices, most of which are operated by solo 
practitioners or small groups. To date, only approximately 2 percent 
of dentists are affiliated with dental management service organizations, in 
an industry that generates approximately $50 billion in total patient 
revenues.

     Gentle Dental is the leading provider of dental management services in 
the western US and one of the largest providers in the country. The company 
provides dental management services to 82 locations in California, Oregon, 
Washington, Idaho and Hawaii, with a current annual run rate of patient 
revenues of approximately $125 million.


                                 - MORE - 




GENTLE DENTAL & DENTAL CARE ALLIANCE
PAGE 3


     Dental Care Allliance provides management and licensing services to 
dental practices in Florida, Georgia, Michigan and Indiana. The company 
currently manages 55 dental practices with a current annual run rate of 
patient revenues of approximately $50 million.

FORWARD LOOKING STATEMENTS

     This press release contains forward-looking statements that involve 
inherent risks and uncertainties. Gentle Dental and Dental Care Alliance 
caution readers that a number of important factors could cause actual results 
to differ materially from those in the forward-looking statements. Those risks 
and uncertainties include the ability of the combined company to close and 
absorb future acquisitions, the economic climate in the combined company's 
service areas, potential changes in government regulation and in the dental 
insurance industry, actions by competitors and other factors disclosed in 
Gentle Dental's and Dental Care Alliance's filings with the Securities and 
Exchange Commission. Forward-looking statements should be considered in light 
of these risks and uncertainties.


                                  # # #