Birman Managed Care, Inc.'s subsidiary secures major health plan contract with Imperial Palace Biloxi - Projected annual revenue in excess of $3,600,000.

COOKEVILLE, Tenn.--(BUSINESS WIRE)--JUNE 26, 1997--BIRMAN MANAGED CARE, INC. (NASDAQ/NNM: BMAN) announced today that the Company's subsidiary, Care3, Inc., has been selected by the Imperial Palace Hotel in Biloxi, MS to be their health plan provider. With a potential to add 2,500 to 3,000 members to the Care3 health plan and projected revenues reaching $3,600,000 to $4,200,000 on an annualized basis, this will be the largest contract held by the Company.

The Imperial Palace Biloxi has nearly 1,100 hotel rooms under construction and is slated to be the largest hotel in the Back Bay area of the Gulf Coast when it opens, now scheduled for late summer of this year. When fully operational the hotel will employ approximately 1,500 persons.

The health plan will provide coverage for employees and dependents. Enrollment under the plan has started and is expected to reach 400 - 500 members by the end of September with full enrollment expected by the end of October. The contract period runs from July 1, 1997 through October 1998.

Mr. Vincent W. Wong, President and CEO of Care3, Inc. commented, "This agreement serves as a strong indication that both employers and their employees acknowledge the cost effectiveness of managed care health plans. It also demonstrates the confidence placed on Care3 to service a major account. When our health plan is fully-operational with the Imperial Palace, it is anticipated Care3 will be one of the largest health plans on the Mississippi Gulf Coast."

Dr. David N. Birman, Chairman of the Board of BIRMAN MANAGED CARE, INC., said, "The engagement of the Imperial Palace as a fully insured customer is highly significant to the growth of Care3 in the Gulf Cost area. A client of this size and caliber will help us to substantially improve our market share in this region."

BIRMAN MANAGED CARE, INC. is a health care consulting and management company dedicated to improving the quality of health care while reducing costs and enhancing the efficiency of delivery services by focusing on the physician as the most important factor in health care delivery. Currently, the Company is providing its proprietary "Quality Management Program" in 29 hospitals in 14 states. In addition, the Company is developing and plans to operate managed health care programs in association with hospitals, physicians and other health care providers and is licensed to operate an HMO in six southern counties of Mississippi.

This release contains forward-looking statements that involve risks and uncertainties. In addition to historical information, investors should carefully consider the risks associated with an investment in the Company's securities as previously outlined by the Company in its prior filings with the Securities and Exchange Commission.

CONTACT: DOUGLAS LESSARD, CFO [phone]

LINDA DECKER, IR [phone]