Advanced Health Corporation corrects figures in 4th graf and year end figures in financial table.

TARRYTOWN, N.Y.--(BUSINESS WIRE)--Feb. 6, 1997--In BW1108 (ADVANCED-HEALTH) Reports Positive Earnings In Fourth Quarter and Releases Year End Results, in 4th graf, net loss figures for 1996 are corrected.

Also, in table for Year Ended 1996, Other Income, Net Loss and Net Loss Per Share figures have been corrected.

The corrected version follows:

Advanced Health Corporation (Nasdaq: ADVH) today announced its revenues and earnings for fourth quarter and year ended December 31, 1996.

In announcing the results, Chief Operating Officer and Chief Financial Officer Alan Masarek commented, "The fourth quarter was a strategic quarter for Advanced Health. We are reporting positive earnings for the first time, an indication that our operating plan is on target and has momentum. We believe our continued growth is a result of our focus on physician requirements: revenue growth and cost reductions with concurrent improvements in the quality of care. We continue to execute our strategy of expanding our group practice and network management service agreements along the East Coast, while leveraging the use of our information tools for physicians at the point-of-care. In the fourth quarter, we increased the number of group practices under management, from 4 to 6, increasing the number of physicians under our direct management from 74 to 116."

Earnings Turn Positive

For the three months ended December 31, 1996, net revenues increased more than ninefold to $6.8 million from $701,000 for the same period in 1995. Net income grew to $429,000 in fourth quarter 1996, as compared to a loss of $(2.2) million for the same period in 1995. Accordingly, net earnings per share for the quarter were $0.06, an improvement over last year's comparable net loss per share of $(0.44).

For the year ended December 31, 1996, net revenues increased to $18.9 million from $1.1 million in 1995. Net loss for the company was $(2.4) million in 1996, as compared to a loss of $(5.7) million in 1995. Accordingly, net loss per share for 1996 was $(0.43), an improvement over last year's net loss per share of $(1.47).

"Physicians on the East Coast are now feeling the squeeze of managed care," said Jon Edelson, MD, Chairman and CEO, "and they are looking to us to help them succeed in this environment. Few companies can provide these physicians with both the business and clinical management solutions they need. Our unique approach to physician practice management -- driven by the power of information technology -- has fueled our success with our current clients and will continue to give us an edge, we believe, with prospective clients in 1997."

Advanced Health Corporation (AHC), based in Tarrytown, NY, is a health care management company, providing services that enable physicians to advance the quality and cost-effectiveness of health care. AHC provides physician practice management services through its Advanced Health Management subsidiary and currently serves over 1,800 physicians. Unlike other physician practice management companies, Advanced Health partners with - instead of purchasing - physician group practices, thereby maintaining physicians' independence and autonomy. AHC provides clinical information systems through its Advanced Health Med-E-Systems' subsidiary; these systems provide physicians with patient-specific clinical and payor information at the point-of-care to improve the quality and reduce the costs of health care. -0-

             ADVANCED HEALTH CORPORATION AND SUBSIDIARIES
                CONSOLIDATED STATEMENTS OF OPERATIONS
               (In thousands, except per share amounts)
                            (unaudited)


                    For the Three Months Ended    For the Year Ended
                        Dec. 31,    Dec. 31,      Dec. 31,     Dec. 31,
                          1996        1995          1996         1995

Total revenues             $6,751       $701        $18,923       $1,054
Gross Profit                2,678        397          8,886          714
Operating income/(loss)       237     (2,203)        (2,484)      (5,699)
Other income/(loss)           192         (6)            43           (8)
Net income/(loss)            $429    ($2,209)       ($2,441)     ($5,707)

PER SHARE
       INFORMATION
Net income/(loss) per
 share                      $0.06     ($0.44)        ($0.43)      ($1.47)

Weighted average common
 shares outstanding         7,556      4,987          5,639        3,893

Editor's Note: This release is also available on the Internet over the World Wide Web: http://www.noonanrusso.com

CONTACT: Victoria Feder

Director of Marketing

Advanced Health Corporation

914-524-4204

e-mail: [e-mail]

or

Noonan/Russo Communications, Inc.

212-696-4455

Pam Burian (investors), ext. 213

Michele Helm (media), ext. 225

e-mail: [e-mail]