AmSurg Corp. Signs Definitive Agreement With Physicians Resource Group for Purchase of Surgery Center Interests; AmSurg is Managing the Operations of 15 PRG Surgery Centers.

Business Editors

NASHVILLE, Tenn.--(BUSINESS WIRE)--Feb. 1, 2000

Ken P. McDonald, President and Chief Executive Officer of AmSurg Corp, (Nasdaq/NM:AMSGA)(Nasdaq/NM:AMSGB) today announced the signing of a definitive agreement with Physicians Resource Group, Inc. (&uot;PRG&uot;) for the purchase by AmSurg of PRG's interests in a portion of its single specialty ophthalmology ambulatory surgery centers. As part of the agreement, AmSurg is currently managing the operations of 15 centers. The agreement provides that AmSurg will purchase PRG's interest in 11 of these 15 centers for approximately $40 million in cash. The agreement also provides that AmSurg may purchase additional centers upon completion of satisfactory due diligence. AmSurg in the last 30 days consummated the purchase of interests in two other centers in Nevada and California previously affiliated with PRG.

Mr. McDonald remarked, &uot;We are very pleased to be announcing this definitive agreement with PRG, which, upon consummation, will substantially expand our base of surgery centers in operation and significantly strengthen our presence in ophthalmology. As part of our agreement with PRG, effective January 1 AmSurg began managing the operations of 15 centers. We expect to be better prepared to operate the centers as majority owners as a result of these interim management responsibilities.&uot;

PRG has filed for bankruptcy in the United States Bankruptcy Court for the Northern District of Texas. It is a condition to the closing of this transaction that the Bankruptcy Court approve the terms of the purchase agreement. Consummation of this transaction, which is expected during the first half of 2000, is also subject to other customary closing conditions. The management agreement is also subject to Bankruptcy Court approval.

Mr. McDonald concluded, &uot;Through this purchase, AmSurg will build upon its position as the clear leader in the single specialty surgery center industry. AmSurg is the country's leader in gastroenterology surgery centers, and with this addition, will establish itself as the leader in ophthalmology surgery centers as well. Our business was founded on the principle of providing high quality healthcare at a lower cost than traditional alternatives, which continues to be one of the most pressing demands in the healthcare industry. In meeting this demand, we have demonstrated our ability to expand this business profitably through increased same-center revenue growth, the development of startup centers and the acquisition of existing centers. We believe that the PRG transaction, when consummated, will substantially contribute to our efforts to continue our profitable growth into the future.&uot;

This press release contains forward-looking statements. These statements, which have been included in reliance on the &uot;safe harbor&uot; provisions of the Private Securities Litigation Reform Act of 1995, involve risks and uncertainties. You 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, AmSurg's and PRG's respective ability to meet all the conditions to the consummation of the transactions contemplated under the definitive agreement; the failure to obtain Bankruptcy Court approval of the proposed PRG transaction; AmSurg's ability to enter into partnership or operating agreements with the physician owners of additional PRG surgery centers; AmSurg's ability to effectively integrate the operations of PRG surgery centers into its operations, its ability to obtain the necessary financing or capital on terms satisfactory to AmSurg; and AmSurg's ability to manage its growth. 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 December 31, 1999, AmSurg owned a majority interest in 63 centers and had 12 centers under development.