Concentra Managed Care Rtgs Put on S&PWatch Negative.

NEW YORK--(BUSINESS WIRE)--Nov. 4, 1998--Standard & Poor's CreditWire 11/4/98 -- Standard & Poor's today placed its ratings on Concentra Managed Care Inc. on CreditWatch with negative implications (see list below).

This action follows the company's announcement that it has formed a special committee of the board of directors to evaluate various strategic alternatives.

Boston, Mass.-based Concentra is a nonrisk bearing company that focuses on managing the care of people unable to work as a result of a work-related injury. The company has grown very quickly from a small base and has had some difficulty in integrating its various acquisitions and gaining synergies between different but related business lines. The company has not met earnings projections for the past few quarters and has announced that it will be taking a charge to earnings of about $15 million-25 million in the fourth quarter of 1998. In addition, Concentra has experienced management turnover, including the resignation of the company's chief executive officer. Standard & Poor's will monitor the outcome of the company's strategic review before taking further rating action.--CreditWire

RATINGS PLACED ON CREDITWATCH WITH NEGATIVE IMPLICATIONS

Rating Concentra Managed Care Inc.

Corporate credit rating BB- $97.8 million 6% convertible

subordinated notes due 2001 B $230 million 4.5% convertible

subordinated notes due 2003 B Bank loan rating BB-