Coastal appoints W. Randall Dickerson as Chief Financial Officer.

DURHAM, N.C.--(BUSINESS WIRE)--March 10, 1997--Coastal Physician Group, Inc. (NYSE:DR) today announced that W. Randall Dickerson has been named interim Chief Financial Officer effective March 17, 1997. Mr. Dickerson will replace Timothy W. Trost, who tendered his resignation to pursue another business opportunity.

Mr. Dickerson, age 42, joined Coastal in 1993 and is currently the Chief Financial Officer of Healthcare Business Resources, Inc., the Company's physician billing and collection services subsidiary. He has previously held the positions of Corporate Controller and, prior to that, Corporate Treasurer of Coastal. Prior to joining Coastal, Mr. Dickerson was a partner with the accounting firm Ernst & Young. He is a certified public accountant and a graduate of the University of South Carolina.

As previously reported, Coastal management is continuing active negotiations with its existing lenders on a possible extension of the maturity date of the outstanding indebtedness beyond July 1, 1997 and on additional financing. The Company also stated that its discussions with another lender regarding Coastal's financing needs are progressing. However, there can be no assurance that additional funds will be provided by either the existing lenders or an alternate financing source.

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.

Robert P. Borchert, Senior Vice President, 919/383-0355