Coastal Physician Group, Inc. announces executive changes.

DURHAM, N.C.--(BUSINESS WIRE)--Nov. 6, 1996--Coastal Physician Group, Inc. (NYSE: DR) today announced that Stephen D. Corman, the Company's Chief Financial Officer and member of its Board of Directors since 1991, has resigned from his position at Coastal. His resignation was in conjunction with a settlement of claims made in a lawsuit against Coastal, Mr. Corman, and others by Steven M. Scott, M.D., and Bertram E. Walls, M.D., both of whom are Coastal directors. The settlement, which dismisses all claims against Mr. Corman, was approved by Coastal's Board on Nov. 6, 1996. The settlement further calls for Mr. Corman to provide financial consulting services to Coastal over a five-month period. Pending court approval, the settlement will be a full resolution of all claims in the lawsuit against Mr. Corman.

Both Dr. Scott and Mr. Corman expressed that the settlement was an amicable one, and that it was their mutual desire that the Company move forward in a unified manner following the election to the Coastal Board of Dr. Scott's two nominees at the annual meeting of shareholders on Sept. 27, 1996.

Coastal named Timothy W. Trost to serve as Chief Financial Officer following Mr. Corman's resignation. Mr. Trost, 38 years old, joined the Company as Vice President of Corporate Development in March 1994 and was named Vice President, Corporate Controller and Chief Accounting Officer in January 1996. Prior to joining Coastal, he served since 1992 as Vice President of Finance and Controller for Morganite North America Inc. Prior to that, Mr. Trost spent twelve years with the accounting firm of Price Waterhouse LLP.

Coastal Physician Group, Inc. is a diversified physician management company providing a broad range of health care and administrative services to physicians, hospitals, employers, managed care programs and other health care providers.

CONTACT: Coastal Physician Group, Inc., Durham

Robert P. Borchert, 919/383-0355