SCHEDULE 14A INFORMATION

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[X]  Soliciting Material Pursuant to Rule 14a-12

                                CARECENTRIC, INC.
                (Name of Registrant as Specified In Its Charter)

    (Name of Person(s) Filing Proxy Statement, if other than the Registrant)

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                                                 JOHN R. FESTA
                                                 PRESIDENT AND CEO
                                                 (678)  264-4400


leading  provider  of  management  information  systems to the home  health care
community,  announced today that, based on the recommendation of the Independent
Committee of the Board and following  the unanimous  agreement of the full Board
(with the interested  Directors  abstaining),  it has signed a merger  agreement
with an investor group (Borden  Associates,  Inc.) led by its major stockholder,
John Reed, and his son,  Stewart Reed,  that could have the effect of taking the
company  private.  The  independent  Committee  made  its  recommendation  after
evaluating the original and subsequently  amended  proposal by Borden,  engaging
Suntrust  Robinson Humphrey to render a fairness opinion on the amended proposal
and  renegotiating  certain  merger terms based on the results of the evaluation

     The merger  agreement,  negotiated by the Independent  Special Committee of
CareCentric's  Board of Directors and  representatives of the investor group led
by John  Reed,  provides  that  each  share of  CareCentric  common  stock  held
beneficially  by a person  who holds  fewer than 4,000  shares  (other  than any
dissenting shares) will be converted into the right to receive $0.75. Each share
of CareCentric common stock (other than any dissenting shares) held beneficially
by a person who holds 4,000 or more shares will  continue to represent one share
of CareCentric common stock.

     The merger transaction could have the following potential effects:

     o    The number of record holders could be reduced from approximately 5,500
          to less than 150 record holders;
     o    CareCentric  would be eligible to terminate  the  registration  of its
          common stock under the Securities Exchange Act of 1934, as amended;
     o    If  the  termination  of the  registration  of the  common  stock  was
          completed,  the  common  stock  would no  longer  be quoted on the OTC
          Bulletin Board.

     The closing of the merger is subject to a number of  conditions,  including
clearance  by the  Securities  and  Exchange  Commission  of the  form of  proxy
statement to be sent to  CareCentric's  stockholders  for their  approval of the
merger,  obtaining  required third party consents and having the total amount of
cash  consideration  required  to  purchase  the  shares  of  those  CareCentric
stockholders owning fewer than 4,000 shares not exceed $600,000.

     CareCentric  provides  information  technology systems and services to over
1,500  customers.   CareCentric   provides   freestanding,   hospital-based  and
multi-office  home health care providers  (including  skilled  nursing,  private
duty,  home medical  equipment and supplies,  IV pharmacy and hospice)  complete
information  solutions  that enable these home care  operations  to generate and
utilize  comprehensive  and  integrated  financial,   operational  and  clinical
information.  With offices nationwide,  CareCentric is headquartered in Atlanta,

Note regarding Private Securities Litigation Reform Act: Statements made in this
press release which are not historical facts, including projections,  statements
of plans, objectives,  expectations, or future economic performance, are forward
looking  statements that involve risks and  uncertainties and are subject to the
safe harbor  created by the Private  Securities  Litigation  Reform Act of 1995.
CareCentric's future financial  performance could differ significantly from that
set forth herein,  and from the  expectations of management.  Important  factors
that could cause CareCentric's  financial  performance to differ materially from
past results and from those expressed in any forward looking statements include,
without  limitation,  the  inability  to obtain  additional  capital  resources,
variability in quarterly  operating  results,  customer  concentration,  product
performance and acceptance, long sales cycles, long and varying delivery cycles,
CareCentric's dependence on business partners, emerging technological standards,
risks   associated  with   acquisitions   and  the  risk  factors   detailed  in
CareCentric's  Registration  Statement on Form S-4 (File No. 333-96529) and from
time to time in  CareCentric's  periodic  reports filed with the  Securities and
Exchange Commission.  Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of their dates.

                                 INVESTOR NOTICE

     CareCentric plans to file with the SEC a proxy statement and other relevant
documents concerning the merger.  Investors of CareCentric are urged to read the
proxy statement when it is filed and any other relevant documents filed with the
SEC because they will contain important information.  You will be able to obtain
the  documents  free  of  charge  at  the  website  maintained  by  the  SEC  at  In  addition,  you may  obtain  documents  filed  with  the SEC by
CareCentric  free of charge by  requesting  them in  writing  from Ana McGary at
CareCentric,  Inc., 2625 Cumberland Parkway,  Suite 310, Atlanta, GA 30339 or by
telephone at (678) 264-4400.

     CareCentric,  its  directors  and  executive  officers and certain of their
employees  and the  investor  group  described  previously  may be  deemed to be
participants in the solicitation of proxies from the stockholders of CareCentric
in connection  with the merger,  if  consummated.  These  participants  may have
interests in the merger,  if  consummated,  including  interests  resulting from
holding  options or shares of CareCentric  common stock.  Information  about the
interests of  directors  and  executive  officers of  CareCentric,  the investor
group, and their ownership of securities of CareCentric will be set forth in the
proxy statement.

     Investors  should  read  the  proxy  statement  carefully  when it  becomes
available before making any voting or investment decisions.