American Physicians Service Group Inc. expands third quarter earnings per share by 75 percent.

Physicians Service Group, Inc. ("APS") (NASDAQ:AMPH) today announced that for the three months ended Sept. 30, 1995, revenues were $4,370,000 vs. $4,251,000 for the same period in 1994. Net income of $538,000, or $0.14 per share, for the third quarter of 1995 rose 75 percent as compared to net income of $287,000, or $0.08 per share, for the same quarter of 1994.

For the nine months ended Sept. 30, 1995, APS reported revenues of $14,386,000 vs. $12,115,000 for the same period in 1994. Net income of $1,196,000 or $.31 per share, for the nine months ended Sept. 30, 1994 advanced a strong 94 percent as compared to net income of $568,000 or $.16 per share, for the same period in 1994.

Ken Shifrin, chairman of the board, stated, "Continued improvement in the insurance management and broker/dealer operations along with the explosive growth at our equity-basis affiliate, Prime Medical Services, Inc. (NASDAQ: PMSI), were the key elements in this quarters' 75 percent increase over the same period in 1994."

Shifrin continued, "Prime Medical's expansion into lithotripsy, a non- invasive method of treating kidney stones, has fueled its double-digit earnings growth. Coming from an initial acquisition of one lithotripter in 1992, four in 1993, eight more in 1994 and two units year-to-date in 1995, Prime has emerged as the number three player in the lithotripsy field. We anticipate Prime continuing to make acquisitions as an integral part of its long-term strategy of developing a national lithotripsy network."

The company also announced the sale of the assets of APS Communications Corporation ("APS Communications"), its publications subsidiary, to Alliance Media, Inc. APS Communications publishes The Spanish Yellow Pages for Mexico, a buying guide of U.S. products and services that is distributed in 11 cities in Mexico.

Shifrin stated, "The sale of the The Spanish Yellow Pages for Mexico was effective Oct. 23, 1995. This business was unprofitable for our company and clearly did not fit with our other operations. Alliance Media, Inc., a Nashville based publisher of yellow page directories provides a much better opportunity for the growth of The Spanish Yellow Pages for Mexico. Alliance Media, Inc. currently publishes directories in Tennessee, Kentucky, Ohio, and Texas."

APS is a management and financial services firm with subsidiaries and affiliates which provide: medical malpractice insurance services for doctors and hospitals; brokerage and investment services to institutions and individuals; computer systems for medical clinics, university medical schools, physician hospital organizations (PHOs) and other physician networks; and lithotripsy in 19 states. The company is headquartered in Austin, Texas and maintains offices in San Antonio, Dallas and Little Rock. -0-

                  AMERICAN PHYSICIANS SERVICE GROUP, INC.
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                          SELECTED FINANCIAL DATA
                          -----------------------
                   (In thousands, except per share data)

                             Three Months Ended     Nine Month Ended
                                September 30,         September 30,
                             ------------------    ------------------
                                1995      1994        1995      1994
                              ------    ------      ------    ------
Revenues                      $4,370     4,251      14,386    12,115
Earnings Before Income
 Taxes                           734       444       1,738       861
                              ------    ------      ------    ------
Net Earnings                  $  538       287       1,196       568
Net Earnings Per
 Common Share
   Primary                    $  .14       .08         .32       .16
   Fully diluted              $  .14       .08         .31       .16

 Weighted Average Shares
 Used in Computation
   Primary                     3,860     3,523       3,722     3,516
   Fully diluted               3,925     3,523       3,818     3,516

-0-

CONTACT: American Physicians Service Group Inc.

Kenneth Shifrin, W.H. Hayes, 512/328-0888