Advanced Health Corp. Named In Expanded Class Action by Reinhardt & Anderson.

NEW YORK--(BUSINESS WIRE)--July 24, 1998-- You are hereby put on notice that a class action lawsuit was filed in the United States District Court for the Southern District of New York, on behalf of all persons who purchased or otherwise acquired the common stock of Advanced Health Corp. (NASDAQ: ADVH; "Advanced Health" or the "Company"), between May 7, 1997 and June 30, 1998, inclusive (the "Class Period").

The complaint charges Advanced Health and certain officers and directors of the Company during the relevant time period with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. The complaint alleges that defendants issued a series of materially false and misleading statements concerning the Company's business, products, operations and finances. Because of the issuance of a series of false and misleading statements, the price of Advanced Health common stock was artificially inflated during the Class Period. Prior to the disclosure of the adverse facts described above, certain officers and directors of Advanced Health sold significant amounts of Advanced Health common stock to the unsuspecting investing public. These sales generated proceeds in excess of $6.6 million to them. In addition, Advanced Health completed a secondary offering of its stock reaping proceeds of over $40 million.

Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Reinhardt & Anderson. Reinhardt & Anderson devotes its practice to securities, antitrust and consumer class actions and has recovered hundreds of millions of dollars on behalf of defrauded investors and consumers in class actions throughout the United States.

If you are a member of the class described above, you may, not later than sixty days from July 1, 1998, move the Court to serve as lead plaintiff of the class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements.

If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Randall H. Steinmeyer of Reinhardt & Anderson, by telephone at 888-253-5139 or 612-227-9990, by facsimile at 612-297-6543, or by e-mail at [e-mail].

    CONTACT: Reinhardt & Anderson
              Randall H. Steinmeyer, 888-253-5139
              [e-mail]