COMPDENT REPORTS RECORD PERFORMANCE; SECOND QUARTER NET INCOME UP MORE THAN 400%.

ATLANTA--(BUSINESS WIRE)--July 23, 1996--CompDent Corporation (Nasdaq/NM:CPDN), a leader in providing total dental benefits, today announced record results for the second quarter and six months ended June 30, 1996.

Revenues for the quarter increased 48% to a record $34.8 million from $23.5 million for the same quarter of 1995. Net income rose 430% to $2.4 million from $454,000 for the year-earlier period. Earnings per share were $0.24 on 10.2 million average shares outstanding, compared with $0.06 on 5.9 million average shares outstanding, for the same quarter last year. EBITDA (earnings before interest, taxes, depreciation and amortization), a standard measure of operating cash flow, was $6.1 million compared with $2.8 million for the second quarter of 1995.

For the first half of 1996, revenues increased 42% to a record $66.1 million from $46.5 million for the first half of 1995. Net income rose 318% to $4.6 million from $1.1 million for the year-earlier period. Earnings per share were $0.46 on 10.2 million average shares outstanding, compared with $0.17 on 5.1 million average shares outstanding, for the first half of 1995. EBITDA for the first half of the year was $11.1 million compared with $5.5 million for the comparable period in 1995. Results for the second quarter and first half of 1995 included a one-time extraordinary charge of $498,000, or $0.09 per share, for the write-off of unamortized loan fees associated with two loans that were prepaid with proceeds from the initial public offering on May 25, 1995.

The increase in average common shares outstanding for both periods is a result of the Company's initial public offering in May 1995 in which 3.93 million shares were issued and a secondary offering in August 1995 in which 1.9 million shares were issued.

Commenting on the results, David R. Klock, chairman, president and chief executive officer, said, "Our strong second quarter performance reinforces our consistent internal growth as well as the positive contribution of the two acquisitions completed in 1996. Revenue growth was driven by a continuation of solid same store growth of 15% and the impact of Texas Dental Plans and Dental Care Plus.

"We completed the acquisition of Dental Care Plus in May, and the integration process has gone extremely well. The acquisition has been non-dilutive for the first two months of combined operations. With Texas Dental and Dental Care Plus, we now have national reach and a dominant market position in a growing number of states, including Florida, Illinois and Texas, with approximately 500,000 plan members in each of these markets. With these strategic acquisitions, we are truly a total dental benefits company, offering a full array of dental products, including managed care, referral fee-for-service and third-party administrative services. In the third quarter we will be rolling out to all of our states a referral-fee-for-service product that has shown excellent financial results in Georgia and Tennessee.

"We continue to explore opportunities for attractive, non-dilutive acquisitions that solidify our market position or enhance our position as a total dental benefits company."

CompDent Corp., headquartered in Atlanta, offers a full product line of dental care plans including managed 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. -0-

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

                             Three Months Ended    Six Months Ended
                                  June 30,             June 30,
                              1996       1995      1996       1995
Revenues                     $34,762   $ 23,476  $ 66,147   $ 46,507

Income:
 Before extraordinary
   item and income tax       $ 4,330   $  1,661  $  8,261   $  2,841
 Income tax provision          1,923        709     3,617      1,232
 Extraordinary item               --       (498)       --       (498)
    Net income                 2,407        454     4,644      1,111

Per share:
 Before extraordinary item   $  0.24   $   0.15  $   0.46   $   0.27
 Extraordinary item               --      (0.09)       --      (0.10)
 Net income                  $  0.24   $   0.06  $   0.46   $   0.17

Weighted average common
   shares outstanding         10,185      5,903    10,191      5,084

EBITDA(a)                      6,051      2,824    11,076      5,519

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

CONTACT: CompDent Corporation, Atlanta

Sharon S. Graham, 770/998-8936