AMERICAN ONCOLOGY RESOURCES ANNOUNCES SECOND QUARTER AND SIX MONTHS RESULTS; Receives $150 million credit line commitment.

HOUSTON--(BUSINESS WIRE)--July 30, 1996--American Oncology Resources, Inc., (Nasdaq:AORI) today announced results for the second quarter and six months ended June 30, 1996.

Revenues for the quarter were $47,374,000, up 92% from the $24,644,000 reported in the same period last year. Net income was $4,060,000 compared with the $2,068,000 reported in the same period last year. Net income per share was $0.09 compared to $0.06 per share for the same period in 1995. Average shares outstanding were 47,555,000, compared with 36,226,000 for the second quarter of last year. The earnings figures have been adjusted to reflect the 2-for-1 stock split which was effective May 31, 1996.

For the six months ended June 30, 1996, revenues rose 125% to $88,124,000, compared to $39,244,000 reported in the same period last year. Net income was $8,507,000, or $.18 per share, versus $3,050,000, or $.09 per share for the comparable 1995 period. Average shares outstanding were 47,447,000, compared with 34,002,000 for the first six months of last year.

R. Dale Ross, Chairman and Chief Executive Officer, said, "During the quarter, we continued to show solid revenue growth from existing and new practices. In markets in which we have had practices for over one year, revenues increased 16% over the second quarter last year."

Mr. Ross continued, "EBITDA margins (earnings before interest, taxes, depreciation and amortization) for the second quarter were lower than expected. This margin decrease relates to the rapid pace of the company's acquisitions which has resulted in a delay in practice integration. We are committed to a more timely integration of our new practices and have made significant infrastructure investments, including regional management teams."

The company also announced that it has obtained a commitment from First Union National Bank of North Carolina for an expanded credit facility. This commitment would increase the company's credit facilities from $40 million to $155 million. Mr. Ross added, "The new credit facility would strengthen our solid capital structure as it provides additional financial resources to meet our future working capital and acquisition needs. We believe this credit commitment demonstrates strong confidence in AOR."

"In the first six months of 1996, we added 40 physicians to the network and expanded into three new markets," said Mr Ross. "With our new credit facility and investment in operational infrastructure, we are confident we can effectively integrate and control our development opportunities."

American Oncology Resources is a national physician practice management company focusing exclusively on oncology. The Company currently provides comprehensive management services under management agreements including practice operations, practice development, marketing, facility development, managed care contracting and information systems to 195 physicians practicing in 15 states.

                     AMERICAN ONCOLOGY RESOURCES, INC.
                            Financial Highlights
                   (In thousands, except per share data)
                                (unaudited)

                                  Three Months         Six Months
                                 Ended June 30,      Ended June 30,
                                1996      1995      1996      1995

Revenue                      $  47,374 $  24,644  $ 88,124 $  39,244
Operating expenses
Pharmaceuticals and supplies    18,806     9,164    33,997    14,236
Practice compensation
 and benefits                    9,700     4,437    18,064     7,483
Other practice costs             5,668     2,806    10,463     4,527
General and administrative       3,711     2,261     6,580     4,153
Depreciation and amortization    2,192     1,142     4,094     1,883
                                40,077    19,810    73,198    32,282
Income from operations           7,297     4,834    14,926     6,962
Other income (expenses):
Interest income                    202       171       751       244
Interest expense                  (950)   (1,556)   (1,956)   (2,173)
Income before income taxes       6,549     3,449    13,721     5,033
Income taxes                     2,489     1,381     5,214     1,983
Net income                   $   4,060 $   2,068  $  8,507 $   3,050
Net income per share         $    0.09 $    0.06  $   0.18 $    0.09
Shares used in per
 share calculations             47,555    36,226    47,447    34,002

 Note: Shares used in 1995 calculations recomputed based on a 2-for-1
stock split effective 5/31/96.

                     AMERICAN ONCOLOGY RESOURCES, INC.
                    CONDENSED CONSOLIDATED BALANCE SHEET

                                       June 30,     December 31,
                                         1996          1995
                                      (unaudited)     (audited)
     ASSETS
Current assets:
   Cash and short-term investments     $  17,482      $  59,783
   Accounts receivable                    44,698         31,152
   Other current assets                    9,554          4,857
     Total current assets                 71,734         95,792

Property and equipment, net               13,571         11,157
Management service agreements,
 net and other assets                    208,130        165,410
                                       $ 293,435      $ 272,359

   LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities                    $  25,113      $  36,068
Long-term indebtedness and
 deferred income taxes                    53,748         45,111
   Total liabilities                      78,861         81,179

Stockholders' equity                     214,574        191,180
   Total liabilities and
    stockholders' equity               $ 293,435      $ 272,359

CONTACT: American Oncology Resources

L. Fred Pounds, 713/873-2674

or

Morgen-Walke Associates

Robert P. Jones/Jill Ruja

Michelle Zawrotny - Media Contact, 212/850-5600