Coastal Physician Group, Inc. Completes Acquisition of Operations of Sterling Healthcare Group, Inc.

DURHAM, N.C.--(BUSINESS WIRE)--July 8, 1999--

Combined Company to be Named PhyAmerica Physician Group

COASTAL PHYSICIAN GROUP, INC. (OTC:ERDR) ("Coastal") today announced that it completed the acquisition of the operations of Sterling Healthcare Group, Inc. ("Sterling").

Sterling was a wholly owned subsidiary of FPA Medical Management, Inc. ("FPA") headquartered in Miami, Florida. Coastal paid approximately $69.3 million and assumed certain current operating liabilities. Financing was provided to Coastal by National Century Financial Enterprises, Inc., Dublin, Ohio.

Steven M. Scott, M.D., Chairman and Chief Executive Officer of Coastal stated, "We are extremely pleased to have this transaction completed. Our goal is for our patients, physicians, and hospitals to have a positive experience while we combine our operations. Coastal and Sterling personnel began working together several weeks ago with a great spirit of teamwork towards providing for a seamless transition."

On July 29, 1999, shareholders are expected to approve PhyAmerica Physician Group, Inc. as the new corporate name. The combined companies have approximately 280 contracts served by approximately 2,300 physicians. Coastal has retained approximately 200 employees representing nearly all of FPA's employees that supported Sterlings' operations. A transition plan provides for maintaining offices at the Miami headquarters under a short-term lease agreement until another location is selected. The regional offices of Sterling are also expected to remain open.

Coastal Physician Group, Inc. is an emergency medicine physician management company and provides certain core competencies to physicians and hospitals throughout the United States.

Forward-looking Information or Statements: Except for statements of historical fact, certain statements made herein are forward-looking in nature and are inherently subject to uncertainties. The actual results of the Company may differ materially from those reflected in the forward-looking statements based on a number of important risk factors, including, but not limited to: the level and timing of improvements in the combined operations of the Company's businesses; the possibility that the Company may not be able to improve operations or execute its strategy as planned; and other important factors discussed above under "Other Trends and Uncertainties" and disclosed from time to time in the Company's Form 10-K, Form 10-Q and other Securities and Exchange Commission filings.