Coastal Physician Group retains Smith Barney as investment banker to explore the sale of the Company.

DURHAM, N.C.--(BUSINESS WIRE)--Sept. 23, 1996--Coastal Physician Group, Inc. (NYSE: DR) today announced that it has engaged the investment banking firm of Smith Barney Inc. as the Company's lead financial advisor to assist Coastal in evaluating a possible sale of the Company.

"We recognize the importance of evaluating all alternatives to enhance Coastal's value for our shareholders, and are continuing to actively explore the sale of the entire Company and all other possible strategic or financial transactions, including equity placements in addition to our asset sale and business revitalization initiatives," said Joseph G. Piemont, President and Chief Executive Officer of Coastal Physician Group. "These initiatives are supplemental to our turnaround efforts to date and should not impede the aggressive implementation of our comprehensive plan, which we believe is only enhancing the value of our organization by reducing our indebtedness and improving the operation of our businesses."

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