American Dental Partners Reports First Quarter 2002 Financial Results.

Business Editors and Medical Writers

WAKEFIELD, Mass.--(BUSINESS WIRE)--May 6, 2002

American Dental Partners, Inc. (NASDAQ:ADPI) announced financial results today for the first quarter ending March 31, 2002.

"Our financial performance this past quarter showed sequential improvement over the prior quarter. Patient revenues increased, earnings from operations margins improved and cash flow from operations reached record levels," said Gregory A. Serrao, Chairman, President and CEO.

Comparing the first quarter of 2002 with the first quarter of 2001, which included $1.5 million or $0.11 per share of special charges and unusual expenses:

-- Earnings from operations were $2,743,000 on net revenue of $36,851,000 as
compared to $1,855,000 on net revenue of $38,096,000.

-- Net earnings were $1,177,000 as compared to $367,000.

-- Diluted net earnings per share were $0.16 as compared to $0.05.

-- Cash earnings per diluted share, calculated by adding the after-tax impact
of amortization of goodwill and intangible assets to net earnings, was $0.24
for the first quarter of 2002, compared to $0.14 in 2001.

Patient revenue for the quarter was $52,957,000. Same market revenue growth for the quarter was 3% over the prior year and 4% over the prior quarter, excluding the affiliates whose operations were disrupted by the managed care contract terminations of early 2001.

"We are pleased with our sequential quarterly improvements. Patient revenue increased, and with our continued focus on cost control, our earnings from operations margin improved over the prior quarter," said Mr. Serrao. "Also during the quarter cash flow from operations reached a record $4 million. We continued to reinvest in our business, completing one practice relocation and two practice affiliations that were combined with two of our existing affiliates. Free cash flow after affiliations and capital expenditures was nearly $3 million, allowing us to retire debt," said Mr. Serrao.

Mr. Serrao concluded, "We believe the actions taken in 2001 are having a positive impact on our current results. Revenues and margins increased, we achieved record cash flow and our balance sheet's capitalization structure improved.

The Company is currently evaluating the applicability of Statement of Financial Accounting Standards No. 142 "Goodwill and Other Intangible Assets" to its dental group affiliation model and the impact its application might have on future amortization expense.

For further discussion of these events and a comprehensive review of the first quarter ending March 31, 2002, the Company will host its previously announced conference call on Tuesday, May 7, 2002 at 10:00 a.m. EST, which will be broadcast live over the Internet at www.amdpi.com. The call will be hosted by Gregory A. Serrao, Chairman, President and CEO. To access the webcast, participants should visit the Investor Relations section of the website at least fifteen minutes prior to the start of the conference call to download and install any necessary audio software. A replay of the webcast will be available at www.amdpi.com and www.streetevents.com approximately two hours after the call through 6:00 p.m. EST  Tuesday, May 14, 2002.

American Dental Partners is one of the nation's leading business partners to dental groups. The Company is affiliated with 19 dental groups which have 155 dental facilities with approximately 1,400 operatories located in 14 states. Nine of the Company's affiliates are accredited by the Accreditation Association for Ambulatory Health Care.

Note: Some of the information in this press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. The words "believe," "expect," "anticipate," "project," and similar expressions, among others, identify forward-looking statements. Forward-looking statements speak only as of the date the statement was made. Such forward-looking statements are subject to uncertainties and other factors that could cause actual results to differ materially from those projected, anticipated or implied. Certain factors that might cause such a difference include, among others, the Company's risks associated with overall or regional economic conditions, contracts its affiliated dental groups have with third party payors and the impact of any terminations or potential terminations of such contracts, the cost of and access to capital, fluctuations in labor markets, the Company's acquisition and affiliation strategy, management of rapid growth, dependence upon affiliated dental groups, dependence upon service agreements and government regulation of the dental industry. Additional risks, uncertainties and other factors are set forth in the "Risk Factors" section of the Company's Registration Statement on Form S-4 (File No. 333-56941).

                    AMERICAN DENTAL PARTNERS, INC.
                         FINANCIAL HIGHLIGHTS
               (in thousands, except per share amounts)
                              (unaudited)


                                                  Three Months Ended
                                                       March 31,
                                                    2002       2001


Net revenue                                        $36,851   $38,096

Operating expenses:
  Salaries and benefits                             17,167    18,027
  Lab fees and dental supplies                       5,650     5,844
  Office occupancy                                   4,405     4,044
  Other operating expenses                           3,247     3,175
  General corporate expenses                         1,428     1,833
  Depreciation                                       1,223     1,310
  Amortization of goodwill and intangible assets       988     1,004
  Special charges                                     --       1,004
       Total operating expenses                     34,108    36,241

Earnings from operations                             2,743     1,855
     Interest expense, net                             816     1,287

Earnings before income taxes                         1,927       568
  Income taxes                                         750       201

  Net earnings                                     $ 1,177   $   367


Net earnings per common share:
  Basic                                            $  0.16   $  0.05
  Diluted                                          $  0.16   $  0.05

Weighted average common shares outstanding:
  Basic                                              7,202     7,179
  Diluted                                            7,381     7,405



                    AMERICAN DENTAL PARTNERS, INC.
                         FINANCIAL HIGHLIGHTS
                            (in thousands)


                                              March 31,  December 31,
                                                2002        2001
                                             (unaudited)
ASSETS
Current assets:
  Cash and cash equivalents                   $  1,585   $  1,540
  Receivables due from affiliated
   dental groups                                19,379     19,366
  Other current assets                           4,840      5,345

       Total current assets                     25,804     26,251

Property and equipment, net                     29,295     29,605

Other non-current assets:
  Goodwill, net                                  2,704      2,704
  Intangible assets, net                        84,370     85,146
  Other assets                                     599        629
       Total other non-current assets           87,673     88,479

       Total assets                           $142,772   $144,335


LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
  Accounts payable and accrued expenses       $ 15,644   $ 15,531
  Current maturities of debt                     1,591      1,597
       Total current liabilities                17,235     17,128

Non-current liabilities:
  Long-term debt                                51,845     54,840
  Other liabilities                             10,624     10,591

       Total non-current liabilities            62,469     65,431

       Total liabilities                        79,704     82,559


Stockholders' equity                            63,068     61,776

Commitments and contingencies
       Total liabilities and
        stockholders' equity                  $142,772   $144,335