Coastal Physician Group Announces North Broward Hospital District Contract Renewal.

DURHAM, N.C.--(BUSINESS WIRE)--Aug. 25, 1997--

-Major Contract Extended Through 1999-

Coastal Physician Services, Inc. (CPS), a wholly-owned subsidiary of Coastal Physician Group, Inc. (NYSE: DR) today announced that the four hospital North Broward Hospital District in Broward County, Florida has renewed its physician agreements with Coastal Physician Services, Inc. These agreements extend Coastal's management and staffing for the District's Emergency Departments, Obstetrics, Gynecology and Pediatric practices through December 1, 1999.

Steven M. Scott, M.D., Coastal's President and Chief Executive Officer stated, "Coastal is extremely pleased with the Commissioners' decision to continue this mutually beneficial relationship which began in 1982. I see it as a tremendous vote of confidence in Coastal and our ability to meet the high standards of the North Broward Hospital District. We look forward to working with the District in providing quality medical care to the people of northern Broward County."

The Company stated that the agreements to provide services to the North Broward Hospital District is one of its largest physician agreements in the country, and is expected to generate approximately $16 million in annual revenues while providing practice management services to approximately 65 physicians.

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.

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Note: This news release contains statements that are forward-looking in nature, and are inherently subject to uncertainties. Actual results may differ materially from those reflected in the forward-looking statements based on a number of important risk factors.

CONTACT: Coastal Physician Group, Inc.

W. Randall Dickerson, CFO, 919/383-0355