CHICAGO, July 23 /PRNewswire/ -- First Commonwealth, Inc. (Nasdaq: FCWI),
a leading managed dental benefits company, today reported that net income for
the second quarter of 1998 increased 19% to $952,000 from $798,000 recorded in
the second quarter of 1997.  Second quarter earnings per share increased 19%
to $0.25 from $0.21 for the same period in 1997.  Total second quarter revenue
increased 15% to $16.0 million from $13.9 million in 1997.
    For the first six months of 1998, net income rose 20% to $1.9 million, or
$0.50 per share.  This compares with $1.6 million, or $0.42 per share in the
same period in 1997.  Total revenue for the first six months of 1998 increased
16% over the same period in 1997, rising to $31.6 million from $27.3 million.
    "This is another quarter of consistent revenue and earnings growth,"
stated David W. Mulligan, the Company's President and Chief Operating Officer.
"This quarter demonstrates that we continue to achieve our gross margin
targets and manage our administrative expenses effectively.  We are
particularly pleased with the continued progress we are making in improving
our operations to remain efficient and competitive to meet our customer
requirements into the future."
    Christopher C. Multhauf, the Company's Chairman and Chief Executive
Officer, added, "The underlying fundamentals of our business remain quite
strong.  Demand for our products remains high and our attentiveness to
provider issues will remain a competitive advantage for us in the marketplace.
We remain enthusiastic about our regional growth strategy and confident of our
ability to execute our plan."
    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 employers diverse requirements and currently serves
over 634,000 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 First Quarter Report 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         Six Months Ended
                                  June 30,                   June 30,
                             1998          1997         1998          1997
    Consolidated Statement of Income Data:
    Subscriber revenue
      Managed care         $11,913       $10,777      $23,599       $21,306
      Indemnity/PPO          3,776         2,851        7,425         5,583
      Fee income               272           228          552           430
        Total subscriber
          revenue           15,961        13,856       31,576        27,319

    Benefit coverage expenses
      Managed care           7,447         6,757       14,784        13,374
      Indemnity/PPO          3,222         2,366        6,335         4,511
      Fee income                --            --           --            --
        Total benefit
          coverage expenses 10,669         9,123       21,119        17,885

    Gross margin
      Managed care           4,466         4,020        8,815         7,932
      Indemnity/PPO            554           485        1,090         1,072
      Fee income               272           228          552           430
        Total gross margin   5,292         4,733       10,457         9,434

    Selling, general and
      administrative expense 3,876         3,491        7,648         7,009

    Operating income         1,416         1,242        2,809         2,425
    Interest income, net       184           111          328           218

    Income before income
      taxes                  1,600         1,353        3,137         2,643
    Provision for income
      taxes                    648           555        1,272         1,085

    Net income                $952          $798       $1,865        $1,558

    Weighted average common and
      equivalent shares
      outstanding        3,747,982     3,734,783    3,742,651     3,732,470

    Diluted earnings per
      share                  $0.25         $0.21        $0.50         $0.42

                            June 30,  December 31,
                              1998          1997
    Balance Sheet Data:
      Total current assets $19,754       $16,554
      Total assets          35,012        31,896
      Total current
        liabilities          9,393         8,325
      Total liabilities      9,811         8,573
      Stockholders' equity  25,201        23,323

    Membership:
      Managed Care         476,800       450,400
      Indemnity/PPO         72,100        65,300
      Fee income (ASO/PPO)  85,300        76,600

    Total Membership       634,200       592,300

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