CORAL GABLES, Fla., November 6 /PRNewswire/ -- Ramsay Managed Care, Inc.
(Nasdaq: RMCR) today announced operating results for the three months ended
September 30, 1996.  The Company recorded for the first quarter a net loss
from continuing operations of ($592,000) or ($0.09) per share compared to a
not loss of ($834,000) or ($0.13) per share for the same quarter in the prior
year.  Revenues for the three months ended September 30, 1996 were $5.8
million, compared to $4.7 million for the comparative prior year period.
    The results for the period do not include the results of the Company's HMO
Division, Apex Healthcare, Inc. which is treated as a discontinued operations
for accounting purposes.  The Company announced November 5, 1996 that it had
agreed to sell Apex Healthcare, Inc.
    Paul J. Ramsay, Chairman of the Board, commented, "The sale of Apex
Healthcare, Inc., allows the Company to focus on its current business and is
consistent with the overall future strategy of the Company."
    Ramsay Managed Care previously announced on October 2, 1996 that it had
entered into a merger agreement with Ramsay Health Care, Inc.  The agreement
is subject to shareholder approval, lender consent and other customary
conditions and is expected to close in March 1997.
    Ramsay Managed Care, Inc. operates a long established business in the
management of mental health services and substance abuse programs on behalf of
self insured employers, health maintenance organizations and governmental
agencies in various states and also operates the foregoing HMO Division.

                          Ramsay Managed Care, Inc.
                              Operating Results

                                        Quarter Ended September 30,
                                   1996                   1995 (restated)
                                                 (unaudited)
                              $             %             $              %

    NET REVENUES         5,822,000        100.0%    4,718,000        100.0%

    Operating expenses:
      Contracted provider
       services          2,423,000         41.6%    1,653,000         35.0%
      Salaries, wages and
       benefits          2,189,000         37.6%    2,184,000         46.3%
      Management fees
       charged by related
       companies            88,000          1.5%       70,000          1.5%
      General and
       administrative
       expenses          1,121,000         19.3%    1,165,000         24.7%
      Depreciation and
       amortization        355,000          6.1%      297,000          6.3%
      Interest expense     238,000          4.1%      183,000          3.9%
    Total operating
     expenses            6,414,000        110.2%    5,552,000        117.7%

    Loss from continuing
     operations before
     income taxes        (592,000)        -10.2%    (834,000)        -17.7%

    Income tax expense           0          0.0%            0          0.0%

    Loss from continuing
     operations          (592,000)        -10.2%    (834,000)        -17.7%

    Loss from operations
     of discontinued HMO
     operation (a)               0          0.0%    (338,000)         -7.2%

    Net loss             (592,000)        -10.2%  (1,172,000)        -24.8%

    Loss per common share
     from continuing
     operations            ($0.09)                    ($0.13)
    Loss per common share
     from discontinued
     operation (a)           $0.00                    ($0.05)
    Loss per common share  ($0.09)                    ($0.18)

    Weighted average
     number of shares
     outstanding         6,397,304                  6,370,909

    (a) The Company recorded a reserve for loss from operations of
discontinued operation at June 30, 1996.  For the quarter ended September 30,
1996, the Company's loss, charged to the reserve, was $838,000.  Consequently,
the loss has no effect on the operating results of the Company.

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