CHICAGO, Feb. 12 /PRNewswire/ -- First Commonwealth, Inc.
(Nasdaq: FCWI), a leading managed dental benefits company, today reported that
net income for the fourth quarter of 1997 increased 27% to $883,000 from
$697,000 recorded in the fourth quarter of 1996.  Fourth quarter earnings per
share increased 26% to $0.24 from $0.19 for the same period in 1996.  Total
fourth quarter revenue increased 18% to $14.8 million from $12.5 million in
1996.
    Net income for the year ended December 31, 1997 increased 22% to a record
$3.3 million from $2.7 million for the year 1996.  Earnings per share
increased 17% to $0.89 for 1997 as compared to $0.76 in 1996.  Total revenue
increased 28% for 1997 to $56.6 million, from $44.1 million in 1996.
    "We are quite pleased with the results we achieved in the fourth quarter,"
stated David W. Mulligan, the Company's President and Chief Operating Officer.
"Not only did middle market enrollment growth remain strong, but we also kept
our administrative expenses in line during the quarter."
    Christopher C. Multhauf, the Company's Chairman and Chief Executive
Officer, added, "First Commonwealth's performance during the quarter, and for
the year, reflects the continued execution of our focused regional business
strategy by our seasoned management team.  During the year, we made
significant progress in information systems, standardizing products in all
markets, and thoroughly integrating our two acquisitions.  Moreover, I'm
particularly gratified that the 1998 price adjustments which we implemented
for most of our indemnity business have been accepted by our clients.  These
price increases reflect the upturn in provider expenses which we experienced
in 1997.  Overall, the Company is well-positioned to continue its growth plan
in 1998."
    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 590,000 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, 1996 and the 1st, 2nd, and 3rd
Quarter Reports for 1997, 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,
                                     1997       1996       1997        1996
    Consolidated Statement of Income Data:
    Subscriber revenue
      Managed care                $11,225      $9,527    $43,509      $32,807
      Indemnity/PPO                 3,311       2,819     12,204       10,629
      Fee income                      220         175        881          663
        Total subscriber revenue   14,756      12,521     56,594       44,099

    Benefit coverage expenses
      Managed care                  7,105       5,852     27,468       19,555
      Indemnity/PPO                 2,995       2,209     10,464        8,318
      Fee income                       --          --         --           --
        Total benefit
          coverage expenses        10,100       8,061     37,932       27,873

    Gross margin
       Managed care                 4,120       3,675     16,041       13,252
       Indemnity/PPO                  316         610      1,740        2,311
       Fee income                     220         175        881          663
         Total gross margin         4,656       4,460     18,662       16,226

    Selling, general and
      administrative expense        3,341       3,437     13,550       12,273

    Operating income                1,315       1,023      5,112        3,953
    Interest income, net              156         160        495          642

    Income before income taxes      1,471       1,183      5,607        4,595
    Provision for income taxes        588         486      2,284        1,864

    Net income                       $883        $697     $3,323       $2,731

    Weighted average common
      and equivalent shares
      outstanding               3,726,130   3,718,983  3,727,334    3,599,565

    Earnings per share - Diluted    $0.24       $0.19      $0.89        $0.76

                               December 31, December 31,
                                    1997         1996
    Balance Sheet Data:
      Total current assets        $16,554     $21,023
      Total assets                 31,896      34,454
      Total current liabilities     8,325      14,331
      Total liabilities             8,573      14,498
      Stockholders' equity         23,323      19,956

    Membership:
      Managed Care                450,400     341,600
      Indemnity/PPO                65,300      56,200
      Fee income (ASO/PPO)         76,600      34,000

    Total Membership              592,300     431,800

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