American Oncology Resources reports third quarter results; Announces Four New Oncology Groups and Enters 12th State.

HOUSTON--Oct. 30, 1995--(BUSINESS WIRE)--American Oncology Resources, Inc. (Nasdaq: AORI) today announced record revenues and earnings for the three month and nine month periods ended September 30, 1995.

Revenue for the third quarter was $25,497,000 up 329% from $5,942,000 in the third quarter of 1994. Net income for the quarter was $4,654,000, or $0.20 per share, as compared to $507,000, or $0.03 per share, recorded in the same period last year. Results for the quarter included $1,502,000, or $0.07 per share, related to nonrecurring events. Average weighted shares outstanding in the quarter rose 50% to 22,815,000, compared with 15,168,000 shares in the third quarter of 1994.

Revenue for the first nine months was $64,741,000, up 421% from $12,437,000 in the same nine month period of 1994. Net income for the nine months was $7,704,000, or $0.41 per share, as compared to $424,000, or $0.03 per share, recorded in the first nine months last year.

The Company also announced that it has completed transactions with two oncology practices based in Schenectady, Albany and Troy, New York, providing medical and radiation oncology services, and additional transactions with oncology groups in Asheville, North Carolina and Boulder, Colorado. These transactions, adding 23 physicians to the AOR network, include management services agreements under which AOR will manage the operations of the practices and assist the groups in new practice development, as well as agreements under which AOR has purchased the non- medical assets and assumed the non-medical liabilities of the practices. Terms of these transactions were not disclosed.

"We are enthusiastic regarding the response to the AOR mission and vision since the successful completion of our initial public offering," stated R. Dale Ross, AOR Chairman and Chief Executive Officer. "Although we are always subject to the variable of timing in our transactions, the strong volume of activity and physician interest in the AOR model continues to accelerate. Since our IPO in June, the Company has entered into six long-term management agreements, adding 35 physicians in Virginia, North Carolina, New York and Colorado. This increases the AOR network by 36% to 132 physicians under management, operating 57 sites of service in 12 states."

"The Company is experiencing a favorable climate for consolidation transactions which expand the founding group's presence within each new AOR market," said Mr. Ross. "The transactions in existing markets facilitate the creation of an effective regional cancer network, one that is very attractive to managed care payors. The original six physician group in Denver now consists of 23 physicians covering an expanded service area throughout Colorado, extending from Boulder through Denver to Colorado Springs. With physician practice management representing one of the fastest growing sectors in health care, AOR is well positioned to access the oncology market potential through additional transactions with physicians, enhancement of operations, physician recruitment and the initiation of new services within existing markets."

American Oncology Resources is a national physician practice management company focusing exclusively on oncology. The Company currently provides comprehensive management services under management agreements including practice operations, practice development, marketing, facility development, managed care contracting and information systems management to 132 physicians practicing in 57 sites of service in 12 states. -0-

                     AMERICAN ONCOLOGY RESOURCES, INC.
                           FINANCIAL HIGHLIGHTS
                   (in thousands except per share data)

                              Three Months Ended   Nine Months Ended
                                 September 30        September 30

                              1995(1)   1994     1995(1)   1994
Revenue                       $25,497  $5,942    $64,741  $12,437
Net Income                   $  4,654  $  507   $  7,704 $    424
Net Income Per Share         $   0.20  $ 0.03   $   0.41 $   0.03
Average Shares Outstanding     22,815  15,168     18,939   14,779

(1) Includes $1,502,000 of pre-tax income, resulting in $0.07 net income
per share, attributable to nonrecurring events.

CONTACT: L. Fred Pounds

Vice President, Finance

or

Leo E. Sands

Vice President, Planning and Development

713/873-2674