Coastal completes acquisition of Raleigh Primary Care Physician practices.

DURHAM, N.C.--(BUSINESS WIRE)--May 10, 1995--Coastal Healthcare Group Inc. (NYSE: DR) announced today that its subsidiary, Integrated Provider Networks Inc., has completed its acquisition of a large pediatric group in Raleigh, North Carolina. The practices include North Raleigh Pediatric Group, Raleigh Pediatric Associates and Western Wake Pediatrics and Adolescent Medicine. Terms of the transactions were not disclosed.

"These practices have 19 of the premier pediatricians in this fast growing North Carolina market," stated Steven M. Scott, M.D., President and Chief Executive Officer. "This acquisition further strengthens our local physician network, provides us a strong presence in Raleigh and Cary, and enhances our ability to provide the highest quality and most cost effective services to patients in the Research Triangle."

Coastal Healthcare Group Inc. -- The Physician Company, is the largest physician management company in the United States, and provides a broad range of health care and administrative services to physicians, hospitals, employers, managed care programs and other health care providers.

CONTACT: Coastal Healthcare Group Inc.

Steven M. Scott, 919/383-0355

or

Edelman Financial

Robert P. Borchert, 212/704-8293