Birman Managed Care Announces New Hospital Contract; Company Increases Presence in the Northeast.

Business Editors

COOKEVILLE, Tenn.--(BUSINESS WIRE)--April 6, 2000

BIRMAN MANAGED CARE, INC.(NASDAQ:BMAN), a physician-driven health care consulting and management company, announced today that its subsidiary, The Birman Group, Inc., has secured a new contract with a hospital in the State of New York. The contract is valued at more than $500,000 for the first year, and has an automatic one-year renewal clause.

This is the second contract this week for Birman, whose sales efforts have expanded in the northeastern region of the United States. This is the Company's first engagement in New York. Earlier this week, the Company announced a new contract in Pennsylvania, also a first in that state. Birman's sales have been slow over the past months, as hospitals continue to wrestle with an increasingly difficult Federal regulatory environment. High-level consulting, such as that provided by Birman, is a strategic decision, and therefore requires a lengthy approval process.

David N. Birman, MD, Chairman and CEO of Birman Managed Care, said "We have been working to develop a client base in the northeast for some time. It is my impression that the company's maturity and staying ability with our clients is beginning to make a difference. Our contracts do not come easily though because we continue to use physicians for the work that we do. It is difficult for non-physicians to understand the clinical issues and medical complexities that form the very base of the Federal government's concerns. Therefore, gaining a contract requires an extensive educational approach for each hospital's administration and medical staff. We are quite pleased with the results of our new client's due-diligence process that resulted in Birman's first New York engagement."

Since 1989, BIRMAN MANAGED CARE, INC. has maintained a highly specialized health care consulting company with a professional team of physicians and allied health professionals. Through its subsidiary, Birman Group, Inc., the Company offers a wide range of consulting services, compliance products and quality management services that are customized for health care providers including hospitals and physician offices.

The information contained herein includes "forward looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Investors are cautioned that forward-looking statements involve risks and uncertainties, including general economic conditions, delays and risks associated with the performance of contracts, consumer and industry acceptance and regulatory risks.