COMPDENT REPORTS RECORD FIRST QUARTER RESULTS; 27% INCREASE IN NET INCOME.

ATLANTA--(BUSINESS WIRE)--April 22, 1997--CompDent Corporation (Nasdaq/NM:CPDN), a leader in providing total dental benefits, today announced record results for the first quarter ended March 31, 1997. Revenues for the quarter increased 21% to $37.8 million from $31.4 million for the same quarter of 1996. Net income for the quarter rose 27% to $2.8 million, or $0.28 per share, from $2.2 million, or $0.22 per share, for the year-earlier period. EBITDA (earnings before interest, taxes, depreciation and amortization), a standard measure of operating cash flow, increased 44% to $7.2 million for the quarter compared with $5.0 million for the first quarter of 1996.

"We're pleased to report another record quarter," said David R. Klock, chairman and chief executive officer. "In 1996 we broadened our business from managed dental care to the full spectrum of dental benefits; while managed dental care remains our core business.

"During the quarter we announced an important strategic initiative for CompDent in the formation of a new subsidiary, Dental Health Management, Inc. (DHM), a dental practice management company. Moving into dental practice management is a natural extension of our existing lines of business. With operations in 24 states and a leading position in most of our markets, CompDent is in a unique position to take advantage of the emerging trend toward consolidation in dental services and the continuing demand for managed dental benefits. While DHM will not contribute significantly to CompDent's earnings in 1997, we believe that DHM will complement our existing dental provider networks, thereby contributing to the growth of our dental benefit plans. Initial reaction has been very positive and we remain very enthusiastic about the prospects for DHM."

Also during the quarter CompDent completed the previously announced acquisition of American Dental Provider, Inc., an Arkansas-based managed dental care provider, together with its affiliated company, Diamond Dental & Vision, Inc., an Arkansas referral fee-for-service dental company. Through this acquisition, CompDent gained approximately 20,000 members and a statewide dental panel and sales network.

CompDent Corporation, headquartered in Atlanta, offers a full product line of dental care plans including network-based dental care, referral fee-for-service and third-party administration. The Company's dental care plans are sold through a network of independent agents and a direct sales force. At March 31, 1997, CompDent offered its services in 24 states. -0-

                         COMPDENT CORPORATION
                         FINANCIAL HIGHLIGHTS
                             (UNAUDITED)
                 (in thousands, except per share data)

                                       Three Months Ended
                                            March 31,
                                        1997        1996
Revenues                               $37,835    $31,385

Net income                             $ 2,839    $ 2,237

Net income per common share            $  0.28    $  0.22

Weighted average common
   shares outstanding                   10,167     10,156

EBITDA (a)                             $ 7,200    $ 5,024

(a) Earnings before interest, taxes, and depreciation and amortization.

CONTACT: CompDent Corp., Atlanta

Sharon S. Graham, 770/998-8936