American HealthChoice Announces Status of Reorganization.

Business Editors

IRVING, Texas--(BUSINESS WIRE)--Feb. 3, 2000

American HealthChoice, Inc. (OTCBB:AHIC) today announced that the Company is in the process of completing its Plan of Reorganization, which it intends to file, along with a Disclosure Statement, with the Bankruptcy Court by the third week of February.

Dr. J. W. Stucki, President and Chief Executive Officer of American HealthChoice stated, &uot;I believe that the terms of the proposed plan are fair to all creditors and parties in interest and I expect that the plan will be approved expeditiously.&uot;

An important component of the reorganization is the conversion of approximately $3,400,000 of secured debt into equity. Also, American HealthChoice has executed a letter of intent to acquire three established clinics located in South Texas with expected gross annual revenue of $5,000,000 and expected cash flow of approximately $1,500,000. The purchase price is approximately $6,000,000 with $900,000 in cash at closing and the remainder in a note, which will be convertible into common stock if annual cash flow targets are achieved over a three year period. The acquisition and future working capital requirements are expected to be funded through an infusion of approximately $1,500,000 in new equity. The debt conversion and the acquisition of the clinics will significantly increase the number of outstanding shares of common stock. In this regard Dr. Stucki stated, &uot;Although the number of outstanding shares will increase, shareholder value will be enhanced through a healthy balance sheet and future profits at the acquired clinics.&uot;

After Confirmation of the Plan of Reorganization, the Company intends to pursue additional acquisitions. The Board of Directors is currently reviewing proposals with the objective of enhancing and maximizing shareholder value.

American HealthChoice, Inc. is a provider of healthcare services and operates primary care clinics located in Texas and Louisiana. Its stock is quoted on the OTC Bulletin Board under the symbol &uot;AHIC.&uot;

&uot;Safe Harbor&uot; Statement: The statements in this release that relate to future plans, expectations, events, performance, and the like are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and the Securities Exchange Act of 1934. Actual results or events could differ materially from those described in the forward-looking statements due to a variety of factors, including those set forth in the company's report on Form 10-KSB for fiscal year 1999 filed with the Securities and Exchange Commission.