Coastal Physician Group, Inc. Stock Expected to Trade on the OTC Electronic Bulletin Board.

DURHAM, N.C.--(BUSINESS WIRE)--Dec. 18, 1998--Coastal Physician Group, Inc. (NYSE:DR) today announced that the New York Stock Exchange, Inc. ("NYSE") has informed the Company that trading in its common stock will be suspended prior to the opening on Monday, January 4, 1999, or earlier if the Company commences trading in another securities marketplace.

Steven M. Scott, M.D., President and Chief Executive Officer, said, "We are disappointed by the decision of the NYSE, but will join several other healthcare companies that have recently not met the NYSE's continued listing standards and are now trading in other markets. We continue to be very encouraged by our new business and improving financial results. Our employees, physicians and hospital clients continue to show strong support for our services."

In July 1998, the Company submitted a plan to the NYSE for meeting the continued listing requirements. While the results for the Company's core operations exceeded those included in the plan, the consolidated financial results were adversely impacted by the losses reported by Healthplan Southeast, Inc., the Florida-based health maintenance organization which was sold in October 1998.

"We were optimistic that the improved results in our core operations would have convinced the NYSE to continue listing the stock while the Company moved forward with the plan. However, since the Company does not meet their continued listing criteria, the NYSE decided to take this action," stated W. Randall Dickerson, Chief Financial Officer. "We began disclosing our discussions with the NYSE in our Form 10-K, so their actions were somewhat anticipated. We regret this step had to be taken at this particular time, but we expect the stock will continue to be publicly traded."

The Company stated that it will investigate trading of the Company's common stock in other marketplaces, but expects that trading will be conducted on the OTC Electronic Bulletin Board.

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, 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 timing of any divestitures; the level and timing of improvements in the operations of the Company's core 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.