AmSurg Corp. First-Quarter Revenues Increase 43%, On 12% Growth in Same-Center Revenues; Earns $0.17 Per Diluted Share for the Quarter.

Business Editors

NASHVILLE, Tenn.--(BUSINESS WIRE)--April 18, 2001

Ken P. McDonald, President and Chief Executive Officer of AmSurg Corp. (Nasdaq NM: AMSGA) (Nasdaq NM: AMSGB), today announced financial results for its first quarter ended March 31, 2001. First quarter revenues were $45,139,000, up 43% from $31,633,000 for the first quarter of 2000. Net earnings increased 33% to $2,685,000 from $2,023,000. Diluted earnings per share for the first quarter grew 21% to $0.17 from $0.14.

Mr. McDonald said, "We are very pleased with the Company's performance for the first quarter. In addition to achieving our 13th consecutive quarter of record revenues, record earnings and increased same-center revenues since we became a public company, we also added six new centers to our base of operations during the quarter. In addition, on April 5, we announced the effectiveness of our public offering of 4 million AmSurg Class A shares, which reflected an increase of approximately 10% in the size of the offering as originally contemplated, and on April 16, we were notified by the underwriters of their decision to exercise their over-allotment option of 600,000 shares, which we expect to close on April 19. We believe this successful offering strengthens our position as the leader of the practice-based surgery center industry and supports our prospects for continued consistent and substantial growth.

"Also, during the quarter, we announced our intention to combine the Class A and Class B shares into a single class of common stock, after complying with SEC and Nasdaq requirements. We intend to present this proposal for a shareholder vote at our annual shareholders meeting in the summer of 2001.

"AmSurg's results continued the Company's trend of substantial revenue growth attributable to both a significant, procedure-driven increase in same-center revenues and the ongoing expansion of our base of centers in operation. Procedure growth is primarily accountable for the 12 % increase in AmSurg's same-center revenues for the quarter, which follows three consecutive years of double-digit percentage increases in the Company's annual same-center revenues. Average centers in operation expanded 31% to 84 centers from 64 for the first quarter of 2000.

"We acquired each of the six new centers added during the quarter, including two of the three remaining centers being contemplated under our definitive purchase agreement with Physicians Resource Group, Inc. ("PRG"). With these two centers, we have now acquired a total of eight of PRG's centers. As a result of the center acquisitions during the first quarter, we completed the period with 87 centers in operation, up 34% from the 65 in operation at the end of the first quarter of 2000.

"We believe that the first quarter's results have positioned us very well to achieve our financial and operating targets for 2001. We continue to believe that our long-term sustainable growth rate for same-center revenues is in the range of 7% to 9%, our target for the remainder of 2001. We also anticipate an increasing contribution from newer centers not yet in the same-center base, especially the 18 centers added in 2000, 13 of which were added in the second half of the year. In addition, with six centers acquired in the first quarter, four centers under development, four centers under letter of intent and one de novo center awaiting certificate of need certification, we have made significant progress toward achieving our goal of adding 12 to 15 new centers for the full year. Because of the continuing operating momentum evident in the Company's results for the first quarter, we remain comfortable with a target of 22% to 25% growth in diluted earnings per share for 2001.

"We believe the ongoing strength of AmSurg's performance has broadened its leadership position in the practice-based surgery center industry. We enhanced this position further with the completion of the equity offering subsequent to the quarter's end, which provided net proceeds of $66.4 million to the Company. The net proceeds have been used to repay borrowings under the Company's credit facility, substantially improving its financial position. Net proceeds of $10.2 million from the exercise of the over-allotment option, which is scheduled to close on April 19, will also be used to repay debt. As a result of the completion of the public offering, the Company's strong internally generated cash flow and the operating momentum AmSurg has developed, we remain confident of the Company's ability to generate additional significant profitable growth in 2001."

AmSurg Corp. will hold a conference call to discuss this release today at 4:15 p.m. Eastern time. Investors will have the opportunity to listen to the conference call over the Internet by going to www.amsurg.com and clicking Investor Relations or by going to www.streetevents.com at least fifteen minutes early to register, download, and install any necessary audio software. For those who cannot listen to the live broadcast, a replay will be available at these sites shortly after the call through the end of business on May 18, 2001.

This press release contains forward-looking statements. These statements, which have been included in reliance on the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, involve risks and uncertainties. Investors are hereby cautioned that these statements may be affected by the important factors, among others, set forth in AmSurg's filings with the Securities and Exchange Commission, and, consequently, actual operations and results may differ materially from the results discussed in the forward-looking statements. Factors that might cause such a difference include, but are not limited to, the Company's ability to enter into partnership or operating agreements for new practice-based ambulatory surgery centers; its ability to identify suitable acquisition candidates and negotiate and close acquisition transactions; its ability to obtain the necessary financing or capital on terms satisfactory to the Company to execute its expansion strategy; its ability to manage growth; its ability to effectively integrate the operations of the surgery centers acquired from PRG into its operations; its ability to contract with managed care payers on terms satisfactory to the Company for its existing centers and its centers that are currently under development; its ability to obtain and retain appropriate licensing approvals for its existing centers and centers currently under development; its ability to minimize start-up losses of its development centers; its ability to maintain favorable relations with its physician partners; and the implementation of the proposed rule issued by the Health Care Financing Administration, which would update the rate setting methodology, payment rates, payment policies and the list of covered surgical procedures for ambulatory surgery centers; and risks associated with the Company's status as a general partner of limited partnerships. AmSurg disclaims any intent or obligation to update these forward-looking statements.

AmSurg Corp. develops, acquires and manages physician practice-based ambulatory surgery centers and specialty physician networks in partnership with surgical and other group practices. At March 31, 2001, AmSurg owned a majority interest in 87 centers and had four centers under development.

                            AMSURG CORP.
     Unaudited Selected Consolidated Financial and Operating Data
            (Dollars in thousands except per share amounts)

                                            For the Three Months
                                               Ended March 31,
                                          -------------------------
Statement of Earnings Data:                   2001            2000
---------------------------               ----------     ----------
Revenues                                  $   45,139     $   31,633

Operating expenses:
      Salaries and benefits                   12,056          8,548
      Supply cost                              5,585          3,781
      Other operating expenses                 9,505          6,863
      Depreciation and amortization            3,252          2,282
                                          ----------     ----------
      Total operating expenses                30,398         21,474
                                          ----------     ----------
      Operating income                        14,741         10,159

Minority interest                              8,545          6,158
Interest expense, net                          1,721            711
                                          ----------     ----------
     Earnings before income taxes              4,475          3,290
Income tax expense                             1,790          1,267
                                          ----------     ----------
     Net earnings                         $    2,685     $    2,023
                                          ==========     ==========
Earnings per common share:
    Basic                                 $     0.18     $     0.14
    Diluted                               $     0.17     $     0.14

Weighted average number of shares
 and share equivalents (000's):
    Basic                                     14,750         14,547
    Diluted                                   15,539         14,867

Operating Data:
Centers in operation at end of period             87             65
Centers under development/not opened at
  end of period                                    4             11
Development centers awaiting CON
  approval at end of period                        1              -
Centers under letter of intent                     4              7
Average number of centers in operation            84             64
Average revenue per center                $      538     $      494
Same center revenues increase                    12%            10%
Procedures performed during the period        89,036         64,480
EBITDA after minority interest            $    9,448     $    6,283
Operating cash flow per share             $     0.36     $     0.26

                                           March 31,      Dec. 31,
Balance Sheet Data:                          2001           2000
-------------------                       ----------     ----------
Cash and cash equivalents                 $    9,806     $    7,688
Working capital                               30,729         26,589
Total assets                                 215,450        190,652
Long-term debt and other long-term
  obligations                                 91,358         71,832
Minority interest                             23,327         21,063
Shareholders' equity                          85,960         83,145