Birman Managed Care, Inc. Announces Preliminary Record Fourth Quarter and Year End Results - Annual Revenues Increased 47%.

COOKEVILLE, Tenn.--(BUSINESS WIRE)--Sept. 10, 1997--BIRMAN MANAGED CARE, INC. (NASDAQ/NNM: BMAN) announced today preliminary operating results for the fourth quarter and year ended June 30, 1997.

For the fourth quarter of fiscal year ended June 30, 1997, the Company reported record revenues of $3,554,515, an increase of 35% from the $2,626,996 reported in the comparable period a year ago. Revenues for the fiscal year ended June 30, 1997 were a record $12,358,647, an increase of 47% from the reported $8,416,946 for fiscal 1996.

Income after taxes for the fourth quarter of fiscal 1997 totaled $512,591, or $.06 per share, as compared with $543,821, or $.07 per share on fewer shares outstanding in the comparable quarter in fiscal 1996. For the fiscal year ended June 30, 1997 the Company reported income after taxes of $1,367,464, or $.17 per share; an increase of 17% as compared with $1,171,781 or $.15 per share on fewer shares outstanding for fiscal year 1996. These results exclude a non-cash charge for stock-based compensation of $1,191,665 resulting from the release of escrowed shares, which is offset on the Company's balance sheet by a corresponding increase to paid- in capital. There is no impact on stockholders' equity on the Company's financial statement as a result of the release of the escrow shares and corresponding non-cash charge.

Dr. David N. Birman, Chairman, President and CEO of BIRMAN MANAGED CARE, INC., "The Company is very pleased with the preliminary operating results for fiscal 1997 which were in line with our expectations. Along with the completion of our initial public offering in February, and the start-up of our subsidiary Care3, Inc.'s health plan in Mississippi, the Company has experienced significant growth."

BIRMAN MANAGED CARE, INC. is a health care consulting and management company dedicated to improving the quality of healthcare 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 30 hospitals in 14 states. The Company is currently operating an HMO in Mississippi. In addition, the Company is developing and plans to operate managed health care programs in association with hospitals, physicians and other health care providers. -0-

                BIRMAN MANAGED CARE, INC. AND SUBSIDIARIES
              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
            PRELIMINARY FOURTH QUARTER AND YEAR END OPERATING RESULTS
                                (unaudited)

                  Three Months Ended           Twelve Months Ended
                        June 30,                      June 30,
                   1997          1996             1997       1996

Revenues        $ 3,554,515    $ 2,626,996   $12,358,647   $ 8,416,946
Cost of Revenue   1,103,507        686,812     4,207,712     2,278,932
Gross Profit      2,451,008      1,940,184     8,150,935     6,138,014
Selling, General and
 Administrative
 Expenses         1,580,218      1,001,205     5,968,527     4,236,607
Stock Based
 Compensation     1,191,665              -     1,191,665             -
Income (Loss) from
 Operations        (320,875)       938,979       990,743     1,901,407
Other Income (Expense)
 Interest Income    115,035         18,602       229,972        47,257
Interest (Expense)   (3,944)        (5,593)       (7,445)      (44,835)
Loss on Sale
 of Assets           (9,039)        (5,065)       (9,039)       (5,065)
Minority Interest     1,162              -         3,052             -
Income (Loss) Before
 Income Taxes      (217,661)       946,923     1,207,283     1,898,764
Provision for Income Tax
 Expense            461,413        403,102     1,031,302       726,983
Net Income (Loss) $(679,074)    $  543,821     $ 175,981    $1,171,781
                 ==========     ==========    ==========     =========
Net Income, Excluding
 Charge from Release of
 Escrow Shares (2) $512,591     $  543,821   $ 1,367,646    $1,171,781
                 ==========     ==========    ==========    ==========
Per Share Data:
Primary Net
 Income (Loss)
Per Share             $(.10)        $  .08        $  .02          $.17
                       =====          ====          ====          ====
Primary Net Income,
 Per Share,
 Excluding Charge from
 Release of Escrow
 Shares (2)           $ .07         $  .08        $  .19          $.17
                       ====           ====          ====          ====
Primary Weighted Average
 Common Shares
 Outstanding      7,620,889      6,703,517     7,618,011     6,703,517
                  =========      =========     =========     =========
Fully Diluted Net
 Income (Loss)
 Per Share            $(.09)        $  .07        $  .02         $ .15
                       =====          ====          ====          ====
Fully Diluted Net
 Income, Per
 Share, Excluding
 Charge from
 Release of Escrow
 Shares (2)           $ .06          $ .07         $ .17         $ .15
                       ====           ====          ====         =====
Fully Diluted Weighted
 Average Common Shares
 Outstanding      8,287,586      7,703,517     8,284,678     7,703,517
                  =========      =========     =========     =========

    1) Stock Based Compensation: In connection with the Company's
initial public offering of Common Stock by Prospectus dated February
12, 1997, David N.  Birman, M.D., an Officer and Director of the
Company, deposited 1,000,000 shares of Common Stock into escrow.  For
the fiscal year ended June 30, 1997, 333,333 of these shares were
released from escrow as the Company achieved the earnings target of
$.17 per share as defined in the escrow agreement.  The release of
these shares from escrow resulted in a non-cash charge to operations
for stock based compensation based on the fair market value of the
shares on June 30, 1997.  This non-cash charge for stock based
compensation was offset on the Company's balance sheets by a
corresponding increase to paid-in capital and therefore, there is no
impact on stockholders' equity on the Company's financial statement
as a result of the release of the escrow shares
    (2) Net income and earnings per share amounts have been restated
to exclude the non-cash charge for stock based compensation resulting
from the release of shares from escrow as disclosed in Note 1.
    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]