Comprehensive Care Reports Second Quarter Financial Results.

TAMPA, Fla.--(BUSINESS WIRE)--Jan. 12, 1999--

Company Reports Significant Increase in Earnings From Continuing

Operations for the Current Six Month Period and Achieves Slight

Increase in Revenue Despite Discontinued Operations 

Comprehensive Care Corp. (NYSE:CMP) Tuesday reported revenues from continuing operations for the second quarter ended Nov. 30, 1998 of $10,215,000, an increase of 4.7% over 1997 second quarter revenues which were $9,757,000 from continuing operations.

Net losses from continuing operations, after recognizing dividends for preferred convertible shareholders, totaled $423,000, or $.12 loss per share, for the current reporting period as compared to net income from continuing operations of $163,000 after dividends, or $.05 per share, in the previous year's comparable period. The quarter's results included approximately $600,000 of expenses related to the previously announced Argentina bid and costs associated with the sale of its Fort Worth/Dallas hospital which occurred in December, 1998. Net losses from discontinued operations for the three months ended Nov. 30, 1998 totaled $524,000, or $.13 loss per share, compared to net income for the three months ended Nov. 30, 1997 of $510,000, or $.15 earnings per share.

For the six months ended Nov. 30, 1998, revenues from continuing operations totaled $20,331,000, a 5.3% increase over revenues of $19,300,000 posted for the six month period ended Nov. 30, 1997. Net income from continuing operations for the current six month period, after recognizing dividends for preferred convertible shareholders, totaled $144,000, or $.04 earnings per share, versus a net loss from continuing operations of $221,000 after dividends, or $.07 loss per share in the previous year's six month reporting period. For the six months ended Nov. 30, 1998, the company posted a net loss of $389,000, or $.12 loss per share, which includes a loss of $653,000 from discontinued operations and a one-time $120,000 extraordinary gain from the company's debenture exchange in the first quarter, compared to a net loss of $162,000, or $.05 loss per share, for the six months ended Nov. 30, 1997.

Chriss Street, chairman of Comprehensive Care, stated: "We have now reached a pivotal point in the evolution of Comprehensive Care. Despite having to make numerous difficult decisions in order to focus on high growth areas of business during the past several quarters, our efforts have securely positioned the company for significant increases in revenue and earnings. The opportunities that are presenting themselves to CompCare are indicative of what our proven management team believes is a sign of things to come as we move into the new millennium. As such, we fully intend to emerge as a renowned leader in the delivery of quality healthcare programs worldwide."

The company has scheduled a conference call for 4:30 p.m. EST  today (Tuesday, Jan. 12, 1999) which is open to the public. Participants are invited to call 1-800-526-7151 and request the "CompCare Conference Call."

Comprehensive Care, based in Tampa, administers and operates behavioral healthcare programs for government agencies and managed care organizations. The company currently has contracts covering approximately 1.5 million healthcare organization members and Medicaid recipients, and has a network of approximately 15,000 practitioners. -0-

                       COMPREHENSIVE CARE CORP.
                Consolidated Statements of Operations
                             (Unaudited)
           (Amounts in thousands, except per share amounts)


                               Three Months Ended    Six Months Ended
                                    Nov. 30,             Nov. 30,
                                 1998     1997        1998     1997

Operating revenues             $10,215  $ 9,757     $20,331  $19,300

Costs and expenses:
 Healthcare operating expenses   8,366    8,145      15,993   16,926
 General and administrative
  expenses                       1,619    1,221       3,236    2,272
 Provision for doubtful
  accounts                         243       11         302       90
 Depreciation and amortization     246      216         481      392
                                10,474    9,593      20,012   19,680

Operating income (loss) from
 continuing operations            (259)     164         319     (380)

Other income (expense):

Asset write-down                  (146)      --        (146)      --
Gain on sale of assets               1       --           1      156
Loss on sale of assets              (4)      (1)         (4)      (8)
Interest income                     63       94         134      207
Interest expense                   (42)     (58)        (88)    (121)
                                  (128)      35        (103)     234
Income (loss) for continuing
 operations before income taxes   (387)     199         216     (146)
Income tax expense                 (15)     (16)        (30)     (34)
Income (loss) from continuing
 operations                       (402)     183         186     (180)

Discontinued operations:
 Income (loss) from operations,
  less applicable income tax
  expense of $0                   (454)     510        (583)      59
 Estimated loss on disposal,
  including provision for
  operating losses through
  disposal date, less applicable
  income tax expense of $0         (70)      --         (70)      --
 Income (loss) before
  extraordinary item              (926)     693        (467)    (121)

Extraordinary gain, net of
 taxes of $0                        --       --         120       --
Net income (loss)                 (926)     693        (347)    (121)

Dividends on convertible
 preferred stock                   (21)     (20)        (42)     (41)

Net income (loss) attributable
 to common shareholders         $ (947)   $ 673      $ (389)  $ (162)

Basic earnings per share:
 Income (loss) from continuing
  operations                    $(0.12)   $0.05      $ 0.04   $(0.07)
 Discontinued operations:
  Income (loss) from operations  (0.13)    0.15       (0.17)    0.02
  Estimated loss on disposal     (0.02)      --       (0.02)      --
 Extraordinary item                 --       --        0.03       --
 Net income (loss)              $(0.27)   $0.20      $(0.12)  $(0.05)

Diluted earnings per share:
 Income (loss) from continuing
  operations                    $(0.12)   $0.05      $ 0.04   $(0.07)
 Discontinued operations:
  Income (loss) from operations  (0.13)    0.13       (0.17)    0.02
  Estimated loss on disposal     (0.02)      --       (0.02)      --
 Extraordinary item                 --       --        0.03       --
 Net income (loss)              $(0.27)   $0.18      $(0.12)  $(0.05)

"Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995: Except for historical information, the matters discussed in this news release that may be considered forward-looking statements may be subject to certain risks and uncertainties that could cause the actual results to differ materially from those projected, including uncertainties in the market, pricing, competition, procurement efficiencies, and other risks detailed from time to time in the company's SEC reports. The company assumes no obligation to update the information in this release.