Coast Dental Services, Inc. Announces Record Results for the Year and Quarter Ended Dec. 31, 1997.

TAMPA, Fla.--(BUSINESS WIRE)--Feb. 9, 1998--Coast Dental Services, Inc. (the "Company") (NASDAQ symbol: CDEN) announced today record results in net revenues and earnings for the year and the quarter ended December 31, 1997. The Company reported that net revenue increased 146% to $20,034,536 for the year ended December 31, 1997 as compared to $8,128,148 for the year ended 1996. Income before income taxes for the year ended December 31, 1997 increased 265% to $5,124,100 for the year ended December 31, 1997 as compared to $1,402,964 for the year ended 1996. Pro forma net income and pro forma basic earnings per share increased to $3,285,712 and $0.55 per share, respectively, for year ended 1997 compared to pro forma net income and pro forma basic earnings per share of $855,808 and $0.24 per share, respectively, for year ended 1996. The Company also produced strong growth for the quarter ended December 31, 1997, reporting an increase of 132 % in net revenue to $6,473,860 and an increase of 415% in net income to $1,264,183 and $0.17 basic earnings per share as compared to the quarter ended December 31, 1996 on a pro forma basis.

During the fourth quarter, the Company completed agreements to acquire certain assets and to manage a total of five (5) Dental Centers in existing Florida markets. The aggregate consideration paid by the Company for these five acquired Dental Centers consisted of $1,203,500 in cash, $60,000 in assumed liabilities and $393,000 in notes. On a pro forma basis, management fees attributable to these acquired Dental Centers would have added approximately $2,526,000 of net revenue to the Company in 1996. Additionally, the Company opened four (4) internally developed Dental Centers, three in the Atlanta, Georgia market and one in the Florida market. As of December 31, 1997, the Company was managing fifty-eight (58) Dental Centers in Florida and Georgia. Commenting on the results, Chairman and Chief Executive Officer Terek Diasti said, "We had an incredible finish to an incredible year. The 4th quarter and year end results are indicative of the strength and talent of the entire Coast team, the success of the Coast operating model, and the demand for our management services. The past year was very exciting for the Company. We started the year with the completion of a successful initial public offering in a difficult market. The Company added a total of 29 new internally developed and acquired Dental Centers, increasing from 29 in 1996 to 58 at the end of 1997, we strengthened our significant market share in Florida and opened our first Dental Centers outside of Florida in the Atlanta, Georgia market. In September, we completed a secondary offering raising approximately $40 million in additional working capital for the Company.

"Also during the fall, the Company expanded it's management team by adding three individuals, one in each of the operations, development and finance departments. These individuals came from different multi-location retailers, adding depth of talent and experience to our Coast team. In the fourth quarter we successfully integrated our new management team members and additionally strengthened our corporate systems and infrastructure to meet the expected growth in 1998. Our focus on a uniform operating model for our managed Dental Centers, and commitment to geographic concentration and management of Dental Centers performing general dentistry, continue to be proven effective by our results. We are very excited about the future."

The Company's chief financial officer, Joseph R. Smith, added, "with over $45 million of available cash and a credit facility of $15 million, the Company has the necessary capital to continue its rapid expansion over the foreseeable future. Our low Developed Dental Center cost structure, internal growth and geographically concentrated acquisitions, allowed us to double the number of Dental Centers under management in 1997 and more than double net revenues while only spending approximately $10.5 million to accomplish this task."

The Company's achievements have continued in January 1998 with the opening of two (2) internally developed Dental Centers, one in the Atlanta, Georgia market and one in the Florida market. As a result, the Company now provides management services to professional associations employing dental professionals located in sixty (60) Dental Centers in Florida and Georgia. -0- SPECIAL NOTE REGARDING FORWARD LOOKING STATEMENTS

This press release contains statements which constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act, as amended and Section 21E of the Securities Exchange Act of 1934. The words "expect", "believe", "goal", "plan", "intend", "estimate" and similar expressions and variations thereof used in this press release are intended to specifically identify forward-looking statements. Those statements appear in a number of places in this press release and include statements regarding the intent, belief, or current expectations of the Company, its director or its officers with respect to, among other things: (I) the demand for the Company's management services; (ii) the strength of the Company's management team, systems and infrastructure; (iii) the Company's successful operating model; and (iv) future prospects for the Company going forward. Investors and prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors. The factors that might cause such differences included, among others, the following: (I) the Company's ability to maintain the success of its operating model; (ii) the demands that expansion of the coverage of the Services and Support Agreement and the integration of new Dental Centers will place, and the effect that such demands will have on the Company's resources, infrastructure, systems and current operations; (iii) the Company's ability to attract and retain management personnel; (iv) the Company's ability to meet the demand for its management services and successfully operating in new markets; (v) the ability of the Company to implement its operating model in newly acquired Dental Centers where a different corporate culture previously existed; (vi) political developments, governmental regulations; (vii) increased costs resulting from technological advancements; (viii) general economic and competitive business conditions and the effect thereof on demand for the Company's management services; (ix) the continued relationship with the Company's affiliated professional association customers and their ability to grow and expand and for additional factors as set forth in the Company's previous filings with the Securities and Exchange Commission. The Company undertakes no obligation to publicly update or revise the forward-looking statements made in this press release to reflect events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events. -0-

                 COAST DENTAL SERVICES, INC.
             CONDENSED STATEMENTS OF OPERATIONS
                        (Unaudited)

                          Quarter Ended            Year Ended
                           December 31,            December 31,
                         1996        1997        1996         1997
Net revenue           $2,786,333  $6,473,860  $8,128,148  $20,034,536
Dental Center
 expenses:
    Staff salaries       804,304   2,068,942   2,324,496    6,228,923
    Dental supplies
     and lab fees        461,082     882,806   1,202,986    2,844,118
    Advertising          220,596     358,436     674,918    1,191,888
    Rent                 266,705     725,919     811,210    2,115,890
    Depreciation          80,961     198,509     203,753      545,859
    Other                101,240     147,181     234,130      433,168
    Total Dental Center
     expenses          1,934,888   4,381,793   5,451,655   13,359,846
    Gross profit         851,445   2,092,067   2,676,655    6,674,690
General and administrative
 expenses                371,467     724,937   1,089,401    2,255,397
    Operating profit     479,978   1,367,130   1,587,254    4,419,293
 Interest income
  (expense)              (71,400)    473,891    (184,290)     704,807
Income before income
 taxes                   408,578   1,841,021   1,402,964    5,124,100
Income tax expense            --     576,838          --    1,715,218
 Net income            $ 408,578  $1,264,183  $1,402,964   $3,408,882
Pro forma income tax
 benefit (expense)       159,346          --    (547,156)    (142,021)
Pro forma net income   $ 249,232  $1,264,183  $  855,808   $3,266,861
Basic earnings per
 share                 $     .12  $      .17  $      .40   $      .57
Pro forma basic
 earnings per share    $     .07  $      .17  $      .24   $      .55
Diluted earnings per
 share                 $     .00  $      .16  $      .00   $      .56
Pro forma diluted
 earnings per share    $     .00  $      .16  $      .00   $      .54

CONTACT: Coast Dental Services, Inc., Tampa

Joseph R. Smith, Chief Financial Officer

813/288-1999