EmCare Holdings Inc. acquires emergency physician practice management companies in California and Georgia

Business Wire, Sept 26, 1996

DALLAS--(BUSINESS WIRE)--Sept. 26, 1996--EmCare Holdings, Inc. (Nasdaq:EMCR) announced today definitive agreements to acquire two emergency physician practice management companies. The two groups generated combined revenues of approximately $12.3 million for their most recent fiscal years and had 140,000 patient visits combined. Both transactions closed in the third quarter of 1996.

EmCare entered the California market with the acquisition of Associated Emergency Physicians (AEP) of San Jose, California. AEP, made up of 40 physicians, provides emergency physician practice management services to three emergency departments in San Jose, California. For fiscal year 1995, revenues were $10.1 million.

In a transaction involving Southern Emergency Medical Specialists (SEMS), a group of seven physicians in Chattanooga, Tennessee, EmCare will now be operating the emergency department, and four urgent care centers in Ft. Oglethorpe, Georgia.

"Both of these acquisitions continue the Company's focus on acquiring physician practices that complement the existing portfolio of client hospitals, stated William F. Miller, III, President and Chief Operating Officer. He added, "The AEP practice positions the Company with its first emergency medicine carveout of 110,000 capitated lives, thus allowing the Company to create the necessary platform for continued growth as contracting for these programs becomes more prevalent."

Dr. Robert Violante, President of AEP, stated, "We are pleased to join the EmCare group and are excited to participate in the development of the Company's expansion in the California market. We believe EmCare offers the financial and management resources to become efficient and competitive in the managed care environment."

Statements contained in this news release that are not based on historical facts are forward looking statements, subject to uncertainties and risks, including, but not limited to, the constantly changing health care environment, the pace of the new business and acquisition activity, the reimbursement rates for health care services, and other risks detailed in the Company's Securities and Exchange filings.

EmCare Holdings Inc. is a leading provider of physician practice management services in hospital emergency departments and other practice settings. EmCare provides the attendant practice management services to its physician contractors and arranges contracts and schedules for their services. EmCare has managed emergency physicians for more than 20 years primarily in larger hospitals with high volume emergency departments. As of June 30, 1996, the Company had management contracts relating to 84 emergency departments in 17 states with approximately 2.2 million patient visits per year.

CONTACT: Robert F. Anderson II

Chief Financial Officer

(214) 712-2000

or

Robert P. Jones/Jill Ruja

Media Contact: Michelle Zawrotny

Morgen-Walke Associates

(212) 850-5600