Advanced Health Merges Millenium and Genesis Groups in New Jersey.

TARRYTOWN, N.Y.--(BUSINESS WIRE)--Feb. 24, 1997--

Merger Grows Millenium Into A 23-Doctor Integrated Group Practice;

Advanced Health Also Launches Internet Home Page

Advanced Health Corporation (Nasdaq: ADVH) today announced the signing of a contract to merge two physician groups in northern New Jersey. The two physician groups are Millennium Medical, P.A., and Genesis Medical, P.C.

Millennium Medical, a practice managed by Advanced Health since September 1996, is based in Union County, New Jersey, and is a primary care-based multispecialty group comprised of 10 physicians. Advanced Health has been providing Millennium with a full range of integrated management services and clinical information systems.

Genesis Medical, based in Cranford, New Jersey, is a primary care-driven group comprised of 13 physicians. The merger will create a 23-doctor, fully integrated group with multiple care centers in the community. Advanced Health will provide full practice management services and information systems to the merged entity.

"This is a strategic agreement for both groups and Advanced Health," said Jon Edelson, M.D., Chairman and C.E.O. of Advanced Health. "This merger is an implementation of our stated strategy for Millenium, to grow the number of physicians and to expand its reach in northern New Jersey. Both practices have prominent physicians who are dedicated to providing the highest quality care to their patients. We look forward to providing the professional management services and information technology they need to support their operations and to continue to grow their group practice."

"We are thrilled with this merger," said Ray Ledon, M.D. of Millenium. "Genesis adds to our roster of leading physicians and gives us the opportunity to improve the quality of care to our patients. As a merged group, we look forward to continuing our relationship with Advanced Health, a relationship which has allowed us to focus on providing superior care to our patients."

"The merger with Millenium," said Bernard Toro-Echague, M.D. of Genesis, "will enable us to operate more efficiently. The integrated group structure allows us to provide high quality medical services to an even broader base of patients in New Jersey. We are also excited to work with Advanced Health, whose professional management services and information technology have proven to be quite impressive."

Separately, Advanced Health also announced the launch of its corporate home page site on the Internet's World Wide Web. The site address is http://www.advhealth.com.

The site provides an explanation of ADVH's differentiating business model which emphasizes partnering with physicians, rather than purchasing them, and providing physicians with clinical information systems at the point-of-care. It also features important information about the company's two subsidiaries, Advanced Health Management and Advanced Health Med-E-Systems(TM). Viewers get key facts on AHM's physician management services, details on AHMES's wide range of clinical information technology products and services, and will soon get information on AHM's physician partners. The site also boasts Physician NetSurf(TM), an ideal place for health care professionals to launch searches. It has "hyperlinks" to numerous health care-related sites, including medical indexes, and the major web search engines. E-mail and an online response card are available for site visitors to request additional information on the Company and provide feedback.

Advanced Health Corporation (ADVH) is a leading physician practice management company that vertically integrates practice and network management services with clinical information systems. Unlike other physician practice management companies Advanced Health partners with - instead of purchases - physician group practices, thereby maintaining physicians' independence and providing the optimal incentives to achieve practice success. ADVH provides physician practice management services through its Advanced Health Management subsidiary and currently serves over 1,800 physicians. ADVH 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- Editor's Notes: This release is available on the Internet at http://www.advhealth.com and at http://www.noonanrusso.com.

CONTACT: Advanced Health Corporation

Victoria Feder

[phone]

e-mail: [e-mail]

or

Noonan/Russo Communications, Inc.

[phone]

Pam Burian (investors), ext. 213

Michele Helm (media), ext. 225

e-mail: [e-mail]