CHICAGO, Feb. 11 /PRNewswire/ -- First Commonwealth, Inc. (Nasdaq: FCWI),
a leading managed dental benefits company, today reported that net income for
the fourth quarter of 1998 increased 25% to $1,107,000 from $883,000 recorded
in the fourth quarter of 1997.  Fourth quarter earnings per share increased
25% to $0.30 from $0.24 for the same period in 1997.  Total fourth quarter
revenue increased 12% to $16.4 million from $14.7 million in 1997.
    Net income for the year ended December 31, 1998 increased 20% to a record
$4.0 million from $3.3 million for the year 1997.  Earning per share increased
20% to $1.07 for 1998 as compared to $0.89 in 1997.  Total revenue increased
13% for 1998 to $64.2 million, from $56.6 million in 1997.
    "We are extremely pleased with these financial results," stated David W.
Mulligan, the Company's President and Chief Operating Officer, "of particular
note is the continued strong trend in the Company's margins, reflecting
disciplined pricing and benefit cost management."
    Christopher C. Multhauf, the Company's Chairman and Chief Executive
Officer, added, "First Commonwealth's performance for the quarter, and for the
year represents the continued excellent execution of our regional business
strategy.  During the quarter and the year, we made significant progress in
benefit plan design and pricing adjustments that have been reflected in the
Company's improving margins.  Additionally, I am very encouraged by the steps
we have taken to enhance the Company's marketing and product distribution
capability.  Overall, the Company is well positioned to continue its growth
plan over the next several years."
    First Commonwealth, Inc. is a regionally focused managed dental benefits
company with operations in Illinois, Indiana, Michigan, Missouri, and
Wisconsin.  The Company markets a broad range of innovative dental benefit
products designed to meet the needs of a wide range of employers and currently
serves over 644,000 members through its managed care, indemnity/PPO and fee
income products.  First Commonwealth, Inc. shares trade on the Nasdaq National
Market under the symbol FCWI.
    This press release contains forward-looking information regarding the
Company.  The forward-looking statements are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.  Forward-
looking statements may be significantly impacted by certain risks and
uncertainties including the Company's ability to execute its strategy.  Other
risk factors are described in First Commonwealth, Inc.'s Annual Report Form
10-K for the year ended December 31, 1997 and Third Quarter Reports for 1998,
on Form 10-Q, all filed with the Securities and Exchange Commission.

                  FIRST COMMONWEALTH, INC. AND SUBSIDIARIES
                          Selected Consolidated Data
               (Dollars in thousands, except per share amounts)
                                 (Unaudited)

                                Three Months Ended      Twelve Months Ended
                                   December 31,             December 31,
                                  1998        1997         1998        1997
    Consolidated Statement
     of Income Data:
    Subscriber revenue
     Managed care              $12,265      $11,225     $47,901      $43,509
     Indemnity/PPO               3,908        3,311      15,162       12,204
     Fee income                    276          220       1,107          881
      Total subscriber revenue  16,449       14,756      64,170       58,594

    Benefit coverage expenses
     Managed care                7,512        7,105      29,790       27,468
     Indemnity/PPO               3,341        2,995      12,941       10,464
     Fee income                     --           --          --           --
      Total benefit coverage
       expenses                 10,853       10,100      42,731       37,932

    Gross margin
     Managed care                4,753        4,120      18,111       16,041
     Indemnity/PPO                 567          316       2,221        1,740
     Fee income                    276          220       1,107          881
      Total gross margin         5,596        4,656      21,439       18,662

    Selling, general and
     administrative expense      3,984        3,341      15,496       13,550

    Operating income             1,612        1,315       5,943        5,112
    Interest income, net           177          156         693          495

    Income before income taxes   1,789        1,471       6,636        5,607
    Provision for income taxes     682          588       2,645        2,284

    Net income                  $1,107         $883      $3,991       $3,323

    Weighted average common
     and equivalent shares
     outstanding             3,730,745    3,726,130   3,737,627    3,727,334

    Diluted earnings
     per share                   $0.30        $0.24       $1.07        $0.89


                                December 31,            December 31,
                                    1998                    1997
    Balance Sheet Data:
     Total current assets         $20,235                 $16,554
     Total assets                  38,035                  31,896
     Total current liabilities     10,165                   8,325
     Total liabilities             10,341                   8,573
    Stockholders' equity           27,694                  23,323

    Membership:
     Managed Care                 482,200                 450,400
     Indemnity/PPO                 75,600                  65,300
     Fee income (ASO/PPO)          87,100                  76,600

    Total Membership              644,900                 592,300

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