CORAL GABLES, Fla., Feb. 11 /PRNewswire/ -- Ramsay Health Care, Inc.
(Nasdaq: RHCI) today announced results for the second quarter ended December
31, 1997.  The Company reported that net revenues for the quarter were
$39,977,000 and net income reached $756,000.  Diluted earnings per share for
the second quarter were $0.04 versus $0.19 (including the impact of a non-
recurring favorable judgement of $0.15 per share), reported for the same
period a year ago.
    For the six months ended December 31, 1997, the Company reported total
revenues of $77,732,000.  Income before extraordinary item reached $1,154,000
compared with $1,991,000 (including the impact of a non-recurring favorable
judgement of $1.5 million), reported for the same period of the prior year.
During the six months ended December 31, 1997, the Company also recorded an
extraordinary loss of $3,574,000 arising from the Company's refinancing of
debt.
    Commenting on the year to date results, Paul J. Ramsay, Chairman of the
Board of Ramsay Health Care, Inc., stated, "Excluding the $13.2 million
revenue contribution of the managed behavioral care division, the Company's
results reflect our continued transition toward the youth services business.
Although, the Company's facility-based psychiatric business decreased, it was
more than off set by a 36% increase in youth services revenues."
    Ramsay Health Care, Inc. further announced that it has been awarded a
contract to act as the State of Florida's Juvenile Assignment Center at its
Gulf Coast facility.  The principal purpose of the assignment center is to
analyze the needs of youth in order to place them in the proper residential
facility which meets the restrictiveness level ordered by the courts.
    "We are pleased to be working in conjunction with the Florida Department
of Juvenile Justice in providing services to the at-risk and troubled youth in
our community," stated Luis E. Lamela, Chief Executive Officer of Ramsay
Health Care, Inc.
    Ramsay Health Care, Inc. is a leading provider and manager of specialty
managed care and behavioral health services.  The Company through its youth
services division offers diversified programs for at-risk and troubled youth
in residential and non-residential settings nationwide.  In addition, the
Company's managed behavioral care division provides and manages the delivery
of behavioral healthcare services for employers, insurance companies, health
maintenance organizations and governmental agencies. Ramsay Health Care, Inc.
also operates psychiatric facilities and manages behavioral healthcare
programs on behalf of acute care hospitals and community mental health centers
throughout the United States.

                           RAMSAY HEALTH CARE, INC.
                              OPERATING RESULTS

                                      QUARTER ENDED DECEMBER 31
                                 1997                        1996
                            $               %           $               %
    TOTAL REVENUES      39,977,000        100.0%   35,072,000        100.0%

    Operating Expenses:
      Salaries, wages and
       benefits         20,257,000         50.7%   16,647,000         47.5%
      Managed care
       provider expenses 3,009,000          7.5%          ---           ---
      Other operating
       expenses         11,747,000         29.4%   11,332,000         32.3%
      Provision for
       doubtful accounts 1,094,000          2.7%    1,260,000          3.6%
      Depreciation and
       amortization      1,643,000          4.1%    1,280,000          3.6%
      Interest and other
       financing charges 1,471,000          3.7%    1,489,000          4.3%
        TOTAL OPERATING
         EXPENSES       39,221,000         98.1%   32,008,000         91.3%

    INCOME BEFORE
     INCOME TAXES          756,000          1.9%    3,064,000          8.7%

    Provision for
     income taxes              ---           ---    1,221,000          3.4%

    NET INCOME (LOSS)      756,000          1.9%    1,843,000          5.3%

    BASIC EARNINGS
     PER SHARE               $0.04                      $0.21

    DILUTED EARNINGS
     PER SHARE               $0.04                      $0.19

    Basic Weighted
     Average Shares
     Outstanding        10,826,724                  8,389,427

    Diluted Weighted
     Average Shares
     Outstanding        13,389,717                  9,749,477


                           RAMSAY HEALTH CARE, INC.
                              OPERATING RESULTS

                                     SIX MONTHS ENDED DECEMBER 31
                                 1997                        1996
                            $               %           $               %


    TOTAL REVENUES      77,732,000        100.0%   66,607,000        100.0%

    Operating Expenses:
      Salaries, wages
       and benefits     39,604,000         50.9%   33,263,000         49.9%
      Managed care
       provider expenses 5,396,000          7.0%          ---           ---
      Other operating
       expenses         23,313,000         30.0%   22,356,000         33.6%
      Provision for
       doubtful accounts 2,193,000          2.8%    2,149,000          3.2%
      Depreciation and
       amortization      3,281,000          4.2%    2,593,000          3.9%
      Interest and other
       financing charges 2,791,000          3.6%    3,034,000          4.6%
       TOTAL OPERATING
        EXPENSES        76,578,000         98.5%   63,395,000         95.2%

    INCOME BEFORE INCOME
     TAXES AND
     EXTRAORDINARY ITEM  1,154,000          1.5%    3,212,000          4.8%
    Provision for
     income taxes              ---           ---    1,221,000          1.8%

    INCOME BEFORE
     EXTRAORDINARY ITEM  1,154,000          1.5%    1,991,000          3.0%
    Extraordinary item,
     loss on early
     extinguishment
     of debt           (3,574,000)         -4.6%          ---           ---

    NET INCOME
     (LOSS)            (2,420,000)         -3.1%    1,991,000          3.0%

    BASIC EARNINGS PER SHARE:
      Income before
       extraordinary item    $0.07                      $0.22
      Extraordinary item    (0.33)                        ---

      Net income (loss)    ($0.26)                      $0.22

    Basic Weighted Average
      Shares
       Outstanding      10,701,143                  8,281,579

    DILUTED EARNINGS PER SHARE:
      Income before
       extraordinary item    $0.06                      $0.20
      Extraordinary item    (0.29)                        ---

      Net income (loss)    ($0.23)                      $0.20

    Diluted Weighted Average
      Shares
       Outstanding      12,416,606                  9,772,737

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