Birman Managed Care, Inc. reports continued significant growth in operating results for the fiscal third quarter ended March 31, 1997.

COOKEVILLE, Tenn.--(BUSINESS WIRE)--May 15, 1997--BIRMAN MANAGED CARE, INC. (NASDAQ/NNM: BMAN) announced today its fiscal third quarter operating results for the period ended March 31, 1997. Dr. David N. Birman, Chairman, President and CEO of BIRMAN MANAGED CARE, INC., commented, "We take great pride in reporting our operating results for the third quarter of fiscal 1997. Our continued revenue growth will allow the Company to further develop and expand its health plans and Quality Management Program."

For the three months ended March 31, 1997 revenues for the Company increased by 50%, to a record $3,707,850, from $2,474,630; and for the nine months ended March 31, 1997 revenues increased by 52%, to a record $8,804,132 from $5,789,950, in the comparable periods of the prior year. The growth in revenue was attributable to management's action to initiate engagements of new hospital-clients and to specifically target larger hospital-clients for the Quality Management Program.

For the three months ended March 31, 1997 net income for the Company decreased by 7% to $482,475, from $519,002 and net income per fully diluted share decreased by 14% to $.06 per share, from $.07 per share from comparable periods of the prior year. Net income results for the quarter were impacted by costs associated with the Company's initial public offering along with investments made in the development of the Company's health plans in Mississippi and Tennessee. These investments are expected to make the Company more profitable over the short and long term.

For the nine months ended March 31, 1997 net income for the Company increased by 36% to $855,055, from $627,960 and net income per fully diluted share increased by 38% to $.11 per share from $.08 per share from comparable periods of the prior year.

The Company successfully completed it's Initial Public Offering of 2,000,000 shares of common stock priced at $5.00 per share on February 12, 1997. The Underwriters of the offering were Royce Investment Group, Inc. and Continental Broker-Dealer Corp. -0-

                         BIRMAN MANAGED CARE, INC. AND SUBSIDIARIES
                      CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                        (unaudited)

                  Three Months Ended            Nine Months Ended
                        March 31,                    March 31,
                   1997          1996            1997        1996

Revenues       $ 3,707,850    $ 2,474,630   $ 8,804,132  $ 5,789,950
Cost of Revenue  1,214,825        591,419     3,104,205    1,592,120
Gross Profit     2,493,025      1,883,211     5,699,927    4,197,830
Selling, General
 and Administrative
 Expenses        1,742,924      1,103,835     4,388,309    3,235,402
Income from
 Operations        750,101        779,376     1,311,618      962,428
Other Income
 (Expense)
Interest (Expense)  (2,508)        (9,262)       (3,501)     (39,242)
Interest Income     53,327         16,253       114,937       28,655
Minority Interest in
 Subsidiary Earnings 1,890              -         1,890            -
                    52,709          6,991       113,326      (10,587)
Income Before
 Income Taxes      802,810        786,367     1,424,944      951,841
Provision for
 Income Tax
 Expense           320,335        267,365       569,889      323,881
Net Income     $   482,475    $   519,002   $   855,055  $   627,960
Per Share Data:
Primary Net Income
 Per Share           $0.06          $0.08         $0.12        $0.09
Primary Weighted
 Average Common
 Shares
 Outstanding     7,568,924      6,703,517     6,894,169    6,703,517
Fully Diluted
 Net Income Per
 Share               $0.06          $0.07         $0.11        $0.08
Fully Diluted
 Weighted Average
 Common Shares
 Outstanding     8,608,574      7,703,517     7,961,152    7,703,517

    BIRMAN MANAGED CARE, INC.  is a health care consulting and
management company dedicated to improving the quality, reducing the
cost, and enhancing the efficiency of the delivery of health care
services through focusing on the physician as the most important
factor in the health care industry.  Currently, the Company is
providing its proprietary "Quality Management Program"  in 32
hospitals in 13 states.  In addition, the Company is developing and
will operate various managed health care programs in association with
hospitals, physicians and other health care providers.

CONTACT: DOUGLAS LESSARD, CFO  [phone]

LINDA DECKER, IR [phone]