Complete Wellness Centers, Inc. Reports Financial Results for Second Quarter.

WASHINGTON, D.C.--(BUSINESS WIRE)--August 12, 1998--

Shareholders Approve Convertible Preferred Stock Issuance to Wexford;

Increase in Authorized Common Stock

Complete Wellness Centers, Inc. ("CWC"), a multi-disciplinary physician practice management company, announced its financial results for the three and six months ended June 30, 1998.

For the current second quarter, total revenues rose 342% to $8,150,786 from last year's second quarter revenues of $1,842,460. The increase in revenues was due in great part to the net addition of 57 Integrated Medical Centers since June 1997 with the balance of the increase attributable to new subsidiaries which initiated operations after June 1997. The net loss for the current second quarter declined substantially to $570,751 or $.22 per share from last year's second quarter net loss of $712,194 or $.38 per share. The reduction in net loss reflects the addition of the weight loss subsidiary and the increasing number and improving operating results of the affiliated medical centers. It should be noted that in the current second quarter, the Company incurred $224,019 in network development costs related to the activities of Optimum Health Services, Inc., which the Company intends to spin off into a separate business entity, and $120,000 in legal expenses associated with the federal investigation. Excluding these non-recurring costs, the second quarter loss would have been $226,732 or $.09 per share.

In commenting on the results, C. Thomas McMillen, Chairman and CEO of Complete Wellness Centers, Inc., stated, "We have made substantial progress towards our goal of growing our top line and cutting our losses thus far this year. We now have 84 Integrated Medical Centers and 54 weight loss centers in operation, the former being under management agreements with CWC and the latter, wholly-owned by CWC. Our plans call for developing 20 additional medical centers by year end."

Additionally, at a Special Shareholders' Meeting, the Company's shareholders approved an amendment to the Company's investment agreement with Wexford Management, L.L.C. ("Wexford"). Under the amendment, Wexford agrees to relinquish redemption rights with respect to its Preferred Stock position in the Company in exchange for the ability to convert its Preferred position to Common Stock if certain terms and conditions of the amended agreement are not met. The Company's shareholders also approved an increase in the number of shares of Common Stock the Company is authorized to issue from 10 million to 50 million.

Complete Wellness Centers, Inc., a multi-disciplinary health services company, develops traditional and alternative provider networks, integrated medical centers, and related products focused on patient wellness. Its common stock and warrants trade on the NASDAQ Small Cap market under the symbols, CMWL and CMWLW, respectively.

This release contains forward-looking statements regarding the plans or objectives of the Company for future operations, including the development of the multi-disciplinary medical centers. The forward- looking statements included herein are based on current expectations that involve some uncertainties. Actual results may differ materially from those projected in such forward-looking statements.

           COMPLETE WELLNESS CENTERS, INC. AND SUBSIDIARIES
                 CONSOLIDATED STATEMENTS OF OPERATIONS
                              (UNAUDITED)

                           Three Months Ended    Six Months Ended
                               June 30,             June 30,
                           1998      1997       1998       1997

Revenue:
 Integrated medical
  clinics              $5,091,647 $1,002,068 $10,018,316 $1,813,947
 Weight management
  centers               2,993,054          0   5,303,951         0
  Other income             66,085    840,392     151,767   990,755
Total operating
 revenue                8,150,786  1,842,460  15,474,034 2,804,702
Direct expenses:
  Salary and consulting
   costs                1,897,298    685,074   3,739,895 1,101,932
  Management fees       2,096,093    884,691   4,983,717 1,241,765
  Costs of weight
   management revenue     617,434       ---    1,081,679       ---
  Rent                    716,646     74,084   1,253,714   110,735
  Advertising and
   marketing              386,523     28,672     605,853    52,885
  Bad debt expense      1,124,921    254,483   2,169,540   473,144
Total direct expenses   6,838,915  1,927,004  13,834,398 2,980,461
Network development cost  224,019        ---     427,676      ---
General and
 administrative         1,638,861    654,502   2,125,743 1,029,281
Depreciation and
 amortization              23,627     21,122     109,908    36,303
Operating loss           (574,636)  (760,168) (1,023,691)(1,241,343)
Interest expense                0      1,757       1,487    24,869
Interest income             3,885     44,084      26,846    47,370
Minority interest               0      5,851      (7,179)    5,851
Net loss before
 income taxes            (570,751)  (711,990) (1,005,511)(1,212,991)
Income taxes                    0        204       1,045      4,204
Net loss after
 income taxes           ($570,751)  (712,194) (1,006,556)($1,217,195)

Loss per share - basic     ($0.22)    ($0.38)    ($0.40)     ($0.70)

Weighted average
 common shares          2,543,610 1,860,767   2,539,020   1,745,016


    CONTACT: C. Thomas McMillen, Chairman and C.E.O.
              Complete Wellness Centers, Inc., 202/639-9700




                                or
              Investor Relations Counsel
              The Equity Group Inc.
              Linda Latman, 212/836-9609