Community Medical Transport announces 1996 results.

YONKERS, N.Y.--(BUSINESS WIRE)--March 24, 1997--Community Medical Transport, Inc. (Nasdaq National Market:CMTI), a leading provider of comprehensive medical transportation services in New York and New Jersey, today announced financial results for its fourth quarter and year ended December 31, 1996. (See attached tables for details.)

Revenues Increase 154% in Fourth Quarter of 1996

During 1996, the Company completed the acquisitions of three medical transportation companies: A-1 Ambulance Service in June 1996, and Hudson Valley Ambulance and Elite Ambulance in August 1996. The addition of revenues from these acquisitions and prior year acquisitions coupled with greater volume generated by an expanded customer base drove revenue to record levels for the quarter and year ended December 31, 1996, up 154% and 133%, respectively, compared to revenues in the same prior year periods.

The full-scale integration of the Company's three 1996 acquisitions commenced late in the fourth quarter and as such, in 1996 the Company had not yet realized the efficiencies and costs-savings it anticipates for 1997. Operating expenses rose disproportionately compared to revenue growth in the fourth quarter and year ended December 31, 1996, primarily due to acquired overhead and personnel of the three acquisitions and costs associated with insurance premiums, and personnel and maintenance costs to accommodate anticipated expanded volume. It should be noted that higher operating expenses in the 1996 fourth quarter include approximately $200,000 in non-recurring acquisition-related expenses. Additionally, as indicated below, the Company has identified, on an annualized basis, approximately $1.2 million (or approximately $300,000 per quarter) of redundant operating expenses which will be eliminated beginning in 1997.

With the inclusion of the acquired companies, the Company's business has shifted toward ambulance services, which as a demand-response business, requires a more significant operating infrastructure investment. While ambulance services are expected to add revenue and improved operating margins in 1997, the Company was not yet generating the level of ambulance business necessary to fully offset the higher operating expenses, including personnel as well as its fleet insurance and related costs.

Selling, general and administrative expenses as a percentage of sales rose 4.4% as initial economies of scale realized through the acquisitions were offset by significantly higher marketing expenses. To gain market share and support its expanded business capabilities and ambulance services, the Company significantly increased its marketing and expenditures in 1996 compared to the prior year, with more than $200,000 of marketing and sales costs in just the fourth quarter of the year. Finally, the Company had higher interest expenses in the 1996 periods as compared to the 1995 periods primarily related due to funding the 1996 acquisitions. As a result of these factors and after preferred dividends, the Company reported a net loss of $120,000, or $.03 per share, and net income of $357,000, or $.10 per share, for the fourth quarter and year ended December 31, 1996.

Company Identifies More Than $1.2 Million In Operating Savings For 1997

Dean Sloane, President and Chief Executive Officer of Community Medical, commented, "As we aggressively consolidate the acquired businesses into our operations, we have identified numerous operating expense reduction opportunities totaling more than $1.2 million over the course of 1997. With strong revenue growth expected in 1997, these efficiencies should be reflected in a significantly improved operating performance."

Mr. Sloane continued, "In 1996, Community Medical firmly positioned itself as a leading contender for major medical transportation contracts in New York and New Jersey. Including the exclusive contracts announced separately today with Cabrini Medical Center and the New York Veteran's Administration Hospitals, we have added more than $2.5 million to our annual revenue base. With our full medical transportation capabilities, extensive geographic coverage and concerted marketing efforts, we are confident that Community Medical is positioned for dynamic and profitable growth this year and beyond."

In addition to the three acquisitions closed In 1996, Community Medical entered into letters of intent and agreements for the acquisitions of five additional medical transportation providers. In this regard, Mr. Sloane added, "All announced intended acquisitions remain under agreement and three acquisitions have been targeted for completion in the second quarter of 1997. We look forward to completing these acquisitions and rapidly integrating them into our core operations."

All forward looking information are estimates by the Company's management and are subject to various risks and uncertainties that may cause results to differ from management's current expectations. Such factors include the Company's ability to close pending acquisitions; changes in healthcare regulations and reimbursement policies; increased competition; and other risks as detailed from time to time in the Company's SEC reports and filings.

Community Medical Transport, Inc. provides medical (emergency and non- emergency) and other specialized transportation services in New York and New Jersey. The Company is dedicated to administering, managing and servicing the transportation needs of healthcare facilities, managed care providers and municipalities. Whether provided as a single transport or in a managed transportation program, Community Medical's services will be offered at fees that help its customers meet their cost containment objectives, with sensitivity to those patients in its care. -0-

                  COMMUNITY MEDICAL TRANSPORT, INC.
                  Consolidated Statement of Income
               (In Thousands, Except Per Share Amounts)

                               Year Ended         Three Months Ended
                              December 31,            December31,
                           1996        1995         1996     1995

Revenue                   $15,532   $ 6,653      $ 5,534   $ 2,176

Income from operations(1)     908       962         (158)      292
Other income (expense) - net  107       ---          107       ---
Interest income (expense)
 - net                       (323)        80        (187)        4

Income (loss) before
 provision
 for income taxes             692      1,042        (238)      296

Provision for income taxes    298        450        (100)      129

Net income (loss)       $     394  $     592    $   (138) $    167

Net income (loss)
 per share(2)           $     .12  $     .19    $   (.03)     $.05

Adjustment for cumulative
   preferred stock
   dividends                  (37)        ---         18       ---

Net income (loss) available
 to common
 stockholders          $      357   $     592   $   (120)  $   167

Net income (loss) per
 share adjusted
  for cumulative preferred
  stock dividends      $      .10   $     .19   $   (.03)  $   .05

Shares Used in Computing
  Net Income Per
  Share                 3,419,200   3,145,300  4,064,600 3,390,300

(1) Includes $207,000 in non-recurring acquisition charges in the 1996 periods.

(2) Does not give effect to the cumulative preferred stock dividend as shown in the table above and is provided for comparative purposes daily.

CONTACT: Community Medical Transport, Inc., Yonkers

Dean L. Sloane, President & CEO, [phone]

or

CMTI's INVESTOR RELATIONS COUNSEL:

The Equity Group Inc.

Tamara Ehlin, [phone]

e-mail: [e-mail]