AmSurg Net Earnings Increase 89% for Second Quarter of 1999; Earnings Per Share Grow 50% to $0.12.

NASHVILLE, Tenn.--(BUSINESS WIRE)--July 21, 1999--

Ken P. McDonald, President of AmSurg Corp. (Nasdaq/NM:AMSGA) (Nasdaq/NM:AMSGB) today announced financial results for its second quarter and six months ended June 30, 1999. For the second quarter, revenues increased 36% to $24,677,000 from $18,122,000 for the second quarter of 1998. Net earnings rose 89% to $1,733,000 from $916,000. Diluted earnings per share for the latest quarter were $0.12, a 50% increase from $0.08 for the second quarter last year, on a 27% rise in weighted average shares outstanding primarily because of the June 1998 common stock offering and the simultaneous conversion of preferred stock into common stock.

For the first half of 1999, revenues were $48,071,000, up 43% from $33,709,000 for the first six months of 1998. Net earnings increased 116% to $3,298,000 from $1,525,000. Diluted earnings per share rose 57% to $0.22 for the first six months of 1999 from $0.14 for the comparable period in 1998, on a 34% increase in weighted average shares outstanding.

Earnings for the first six months of 1999 as described above exclude the impact of the cumulative effect of an accounting change of $126,000, or $0.01 per diluted share. Results for the second quarter and first six months of 1998 exclude the operations of the Company's two physician practices, which were sold during 1998.

"We are pleased to report another quarter of substantial profitable growth," said Mr. McDonald. "Our results reflect the fact that the Company continued to produce double-digit same-center revenue growth. We attribute a large part of the 14% rate of same-center revenue growth for the second quarter - AmSurg's fourth consecutive quarter of double-digit same-center revenue increases - to the focused strategic plans we implement with each of our physician group partners to increase market share in each local market.

"AmSurg's revenue growth also reflected the 17% increase in centers in operation to 54 at the quarter's end from 46 at the same time in 1998. We added two new centers during the quarter through acquisition. We also continued to work on five new centers under development and increased the number of centers under letter of intent at the quarter's end to 11 compared with five at this same time in 1998.

"The pipeline of both development and acquisition letters of intent is at the highest level since AmSurg became a publicly held company. The development centers under letter of intent and the majority of the five centers under construction are expected to open in the year 2000 and will provide a substantial foundation from which to pursue our development center goals for the year 2000. In addition, several of the potential acquisitions under letter of intent, as well as one of the acquisitions completed during the second quarter, are centers that are substantially larger than AmSurg's standard center. Because we believe these centers will produce more revenues and earnings than the standard AmSurg center, we believe we will achieve expected financial results from new centers for 1999 with potentially fewer new centers coming into operation than originally planned.

"The Company also continues to work towards the execution of a definitive agreement with Physicians Resource Group, Inc., with whom we have signed a previously announced letter of intent to acquire an interest in PRG's ophthalmology surgery centers. We have completed financial and operational due diligence on nearly one-half of the approximately 40 ophthalmology surgery centers in which PRG has an ownership interest. At this time, we can report that most of the physician practices we have met through this process have an interest in further negotiations with AmSurg, and we have an interest in coming to an agreement with most of them. Because of the many contingencies that must be met to complete this transaction, however, we again caution that we are uncertain as to the transaction's ultimate impact on the Company."

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. 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, the Company's ability to enter into partnership or operating agreements for new practice-based ambulatory surgery centers and new specialty physician networks; 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 in order to execute its expansion strategy; its ability to manage growth; 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; the implementation of the proposed rule issued by the Health Care Financing Administration ("HCFA") which would update the rate setting methodology, payment rates, payment policies and the list of covered surgical procedures for ambulatory surgery centers; and risks relating to the Company's technological systems, including becoming Year 2000 compliant. As to the proposed transaction with PRG, factors include, but are not limited to the companies' respective ability to meet all the conditions to the execution of a definitive agreement and the consummation of the transactions contemplated thereunder; AmSurg's ability to enter into partnership or operating agreements with the physician owners of the surgery centers; and AmSurg's ability to effectively integrate the operations of the PRG surgery centers into its operations. 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 June 30, 1999, AmSurg owned a majority interest in 54 centers and had five centers under development. -0-

                             AMSURG CORP.
                    Unaudited Financial Highlights
               (in thousands, except per share amounts)

                            Three Months Ended       Six Months Ended
                                 June 30,                June 30,
As reported:                1999         1998        1999        1998
------------             ---------    ---------   ---------   --------
Revenues                 $ 24,677     $ 20,120    $ 48,071    $ 37,949
Net earnings (loss)
 before cumulative
 effect of an accounting
 change                    1,733        (2,650)      3,298      (1,950)
Cumulative effect of a
 change in the method
 in which pre-opening
 costs are recorded             -            -        (126)          -
                         ---------    ---------   ---------   ---------


Net earnings (loss)      $  1,733     $ (2,650)   $  3,172    $ (1,950)
                         =========    =========   =========   =========
Basic earnings (loss)
 per common share:
   Net earnings (loss)
    before cumulative
    effect of an
    accounting change    $   0.12     $  (0.25)   $   0.23    $  (0.19)
   Net earnings (loss)   $   0.12     $  (0.25)   $   0.22    $  (0.19)
Diluted earnings (loss)
 per common share:
   Net earnings (loss)
    before cumulative
    effect of an
    accounting change    $   0.12     $  (0.25)   $   0.22    $  (0.19)
   Net earnings (loss)   $   0.12     $  (0.25)   $   0.22    $  (0.19)
Weighted average number
 of shares and share
 equivalents:
   Basic                   14,359       10,623      14,341      10,148
   Diluted                 14,700       10,623      14,710      10,148

Pro forma:
---------
Revenues                 $ 24,677     $ 18,122(1) $ 48,071    $ 33,709(1)
                         =========    =========   =========   =========
Net earnings before
 cumulative effect
 of an accounting
 change                  $  1,733     $    916(1) $  3,298    $  1,525(1)
                         =========    =========   =========   =========

Net earnings per
 common share before
 cumulative effect
 of an accounting
 change (diluted)        $   0.12     $   0.08(1) $   0.22    $   0.14(1)
                         =========    =========   =========   =========



     (1) Excludes the operations of the Company's two physician
practices, which were sold in 1998.