COMPDENT REPORTS RECORD RESULTS FOR THIRD QUARTER AND NINE MONTHS.

(Nasdaq/NM:CPDN), a leader in the managed dental care industry, today announced record results for the third quarter and nine months ended September 30, 1995.

Revenues for the third quarter increased 129% to $31.9 million from $13.9 million for the third quarter of 1994. Net income for the quarter was $1.6 million, or $0.18 per share on 9.0 million average shares outstanding, compared with $408,000, or $0.09 per share on 4.3 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 $4.1 million for the quarter compared with $1.9 million for the year-earlier period.

For the nine months, revenues increased 93% to $78.4 million from $40.7 million for the prior-year period. After-tax net income for the nine months, before an extraordinary charge, was $3.3 million, or $0.47 per share on 6.4 million average shares outstanding. In the second quarter of 1995, there was a one-time extraordinary charge of $498,122, or $0.09 per share, for the write-off of unamortized loan fees associated with two loans that were prepaid with proceeds from CompDent's initial public offering on May 25, 1995. After the extraordinary charge, year-to-date net income increased 177% to $2.8 million, or $0.39 per share on 6.4 million average shares outstanding, from $995,000, or $0.21 per share on 4.3 million average shares outstanding. EBITDA was $9.1 million for the nine months compared with $5.5 million for the same period last year.

The increase in average common shares outstanding 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.

"We're very pleased with our performance for the quarter and on a year-to-date basis," said David R. Klock, president and chief executive officer. "Our record results reflect both strong internal growth in plan members and the successful integration of the DentiCare and CompDent acquisitions which were completed in December 1994 and July 1995, respectively. With these strategic acquisitions completed, we have an extremely strong base from which we will increase both the number of dentists participating in our program and the number of plan members."

CompDent Corp., headquartered in Atlanta, offers managed dental care plans as an alternative to traditional indemnity dental insurance and provides dental coverage for approximately 1.4 million plan members in 16 states. The Company's managed dental care plans are sold through a network of more than 8,800 independent agents and a 40-person direct sales force. -0-

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

                             Three Months Ended    Nine Months Ended
                                September 30,        September 30,
                              1995       1994      1995       1994
Revenues                     $31,872   $ 13,945  $ 78,379   $ 40,699

Income:
 Before extraordinary item   $ 1,647   $    408  $  3,251   $    995
   Extraordinary item              ~          ~      (498)         ~
   Net income                  1,647        408     2,753        995

Per share:
 Before extraordinary item   $  0.18   $   0.09  $   0.47   $   0.21
 Extraordinary item                ~          -     (0.08)         -
 Net income                  $  0.18   $   0.09  $   0.39   $   0.21

Weighted average common
   shares outstanding          9,041      4,256     6,411      4,255

CONTACT: Compdent Corp., Atlanta

Sharon S. Graham, 404/998-8936