Revenues up 27%; operating income increases 48% over the fourth quarter
                                   last year

    BOSTON, Jan. 28 /PRNewswire/ -- CRA Managed Care, Inc. (Nasdaq: CRAA)
today announced that revenues for the fourth quarter ended December 31, 1996,
increased 27 percent to $48.6 million, compared with revenues of $38.2 million
during the three months ended December 31, 1995.  Operating income for the
three months ended December 31, 1996, increased 48 percent to $4.9 million,
compared with $3.3 million for the same period last year.  This margin
improvement was due primarily to the continued growth in CRA's cost-
containment services, which accounted for approximately 38 percent of total
revenues in the fourth quarter.
    Net income for the three months ended December 31, 1996, increased 53
percent to $2.9 million, or $0.32 per share, compared with $1.9 million, or
$0.25 per share, for the same period last year.  This increase in earnings per
share for the fourth quarter also reflects a 22 percent increase in weighted
average shares outstanding over last year's fourth quarter.
    For the twelve months ended December 31, 1996, revenues increased 23
percent to $179.7 million, compared with $146.1 million for the twelve months
ended December 31, 1995.  Operating income rose 41 percent to $17.5 million,
compared with $12.4 million for the same period last year.
    For the twelve months ended December 31, 1996, net income increased 68
percent to $10.1 million, or $1.19 per share, compared with $6.0 million, or
$0.91 per share, for the same period last year, before an extraordinary charge
taken last year related to a loss on the early retirement of debt.
    "Our financial results for 1996 demonstrate that CRA is seizing the
opportunity associated with two important trends emerging in America -- the
transformation of workers' compensation to a managed care delivery system and
the general trend toward outsourcing," said Donald J. Larson, president and
chief executive officer of CRA Managed Care.  "We are benefiting from these
trends because CRA has distinct competitive advantages in the workers'
compensation managed care marketplace.  CRA is uniquely positioned to offer
workers' comp payers a fully integrated portfolio of field case management and
cost containment services.  We expect to fortify our competitive position
further in 1997."
    CRA Managed Care Inc. provides managed care services designed to reduce
the costs associated with workers' compensation, automobile and disability
insurance claims.  The Company operates one of the largest field case
management organizations in North America, consisting of 118 field case
management offices with over 1,125 field case managers who provide medical
management and return-to-work services in 49 states and the District of
Columbia.  The Company also owns FOCUS Healthcare, one of the country's
largest specialized PPOs focused on the workers' compensation and automobile
liability marketplaces; as well as Prompt Associates, a leading provider of
both inpatient and outpatient bill review services to the healthcare
marketplace for claims that fall outside of a payer's network of hospitals or
outpatient facilities.  Additionally, CRA provides a broad range of
specialized cost containment services from 70 service locations -- including
utilization management, telephonic case management and retrospective medical
bill review services that are designed to reduce costs associated with work
and auto-related injuries.
    This press release contains certain forward-looking statements, which the
Company is making in reliance on the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995.  Investors are cautioned that all
forward-looking statements involve risks and uncertainties, and that the
Company's actual results may differ materially from the results discussed in
the forward-looking statements.  Factors that could cause or contribute to
such differences include, but are not limited to, the potential adverse impact
of governmental regulation on the Company's operations, an interruption in its
data processing capabilities, operational, financing and strategic risks
related to the Company's growth strategy, possible quarterly and annual
fluctuations in its operating results, litigation against the Company,
possible legal liability for adverse medical consequences, competitive
pressures, adverse changes in market conditions for the Company's services,
and the dependence of the Company on key management personnel.  Additional
factors include those described in the Company's Registration Statement filed
with the SEC on May 7, 1996 (SEC File No. 333-03253).

                           Statement of Operations
                                  (unaudited)

                                         Three Months Ended
                                             December 31
                                         1996           1995
      REVENUES                       $48,620,000   $38,174,000
      COST OF SERVICES                39,766,000    32,015,000
      GROSS PROFIT                     8,854,000     6,159,000
     GENERAL & ADMIN. EXPENSES         3,948,000     2,841,000
         OPERATING INCOME              4,906,000     3,318,000
         INTEREST (INCOME)
          EXPENSE, NET                  (13,000)       224,000
      INCOME BEFORE INCOME TAXES       4,919,000     3,094,000
     PROVISION FOR INCOME TAXES        2,042,200     1,238,000
     NET INCOME BEFORE
      EXTRAORDINARY ITEMS              2,877,000     1,856,000
     LOSS ON RETIREMENT OF DEBT,
      NET OF TAXES OF 1,610,000              ---           ---
     NET INCOME:                      $2,877,000    $1,856,000

     EARINGS PER SHARE:
      NET INCOME BEFORE
       EXTRAORDINARY ITEMS                 $0.32         $0.25
      LOSS ON RETIREMENT OF DEBT,
       NET OF TAXES                         $---          $---
      NET INCOME                           $0.32         $0.25
     WEIGHTED AVERAGE SHARES
      OUTSTANDING                      9,117,000     7,492,000


                                             Year Ended
                                             December 3l
                                          1996          1995
     REVENUES                       $179,652,000  $146,055,000
      COST OF SERVICES               147,747,000   122,615,000
       GROSS PROFIT                   31,905,000    23,440,000
      GENERAL & ADMIN. EXPENSES       14,439,000    11,021,000
         OPERATING INCOME             17,466,000    12,419,000
      INTEREST (INCOME) EXPENSE,
       NET                               199,000     2,484,000
       INCOME BEFORE INCOME TAXES     17,267,000     9,935,000
      PROVISION FOR INCOME TAXES       7,166,000     3,974,000
      NET INCOME BEFORE
       EXTRAORDINARY ITEMS            10,101,000     5,961,000
      LOSS ON RETIREMENT OF DEBT,
       NET OF TAXES OF 1,610,000             ---   (2,460,000)
      NET INCOME:                    $10,101,000    $3,501,000

     EARINGS PER SHARE:
      NET INCOME BEFORE
       EXTRAORDINARY ITEMS                 $1.19         $0.91
      LOSS ON RETIREMENT OF DEBT,
       NET OF TAXES                         $---       ($0.37)
      NET INCOME                           $1.19         $0.54
     WEIGHTED AVERAGE SHARES
      OUTSTANDING                      8,475,000     6,540,000

Link to this page: