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EMPLOYEE BENEFIT PLANS REPORTS SECOND QUARTER EARNINGS, ANNOUNCES RECENT DEVELOPMENTS

 EMPLOYEE BENEFIT PLANS REPORTS SECOND QUARTER EARNINGS,
 ANNOUNCES RECENT DEVELOPMENTS
 MINNEAPOLIS, Jan. 15 /PRNewswire/ -- Employee Benefit Plans, Inc. (NYSE: EBP) today reported second quarter revenues of $53.4 million, compared with $38.2 million a year ago, a $15.2 million or 39 percent increase. For the quarter ended Nov. 30, 1991, operating earnings were $6.0 million, compared with $4.5 million in the 1990 period, a $1.5 million or 33 percent increase. EBP's second quarter net earnings were $2.8 million or $0.34 per share, compared with earnings before extraordinary item of $2.4 million or $0.34 per share a year ago. On Jan. 9, EBP issued a press release that estimated quarterly earnings of $0.34 per share.
 EBP also announced that it has signed an agreement to purchase Employee Benefit Administrators, Inc. (EBA). EBA, a third-party administrator based in Grand Rapids, Minn., serves approximately 43,000 employees.
 Separately, two shareholder class-action lawsuits were served yesterday against the company and certain officers and directors alleging violations of federal securities laws. EBP believes that these lawsuits, which were filed following the market decline in EBP's common stock after its Jan. 9 press release, are without merit. The company intends to vigorously defend the lawsuits.
 EBP, headquartered in Minneapolis, is a leader in designing and managing self-funded employee benefit programs for companies throughout the United States.
 EMPLOYEE BENEFIT PLANS, INC. AND SUBSIDIARIES
 SELECTED FINANCIAL INFORMATION
 Three Months Ended
 11/30/91 11/30/90
 Revenues:
 Managed health care $17,579,879 $13,527,127
 Reinsurance 33,755,625 23,990,093
 Investment 2,108,069 687,768
 Total revenues 53,443,573 38,204,988
 Operating Expenses:
 Loss and loss adjustment exp. 17,588,299 12,083,060
 Salaries and benefits 9,349,833 6,530,053
 Policy acquisition costs 13,043,694 9,623,199
 General and administrative 7,460,874 5,451,838
 Total expenses 47,442,700 33,688,150
 Earnings from operations 6,000,873 4,516,838
 Interest expense 1,364,405 161,825
 Earnings before provision for
 income taxes and extraordinary
 item 4,636,468 4,355,013
 Provision for income taxes 1,852,000 1,950,000
 Earnings before extraordinary
 item 2,784,468 2,405,013
 Extraordinary item-tax benefit
 resulting from utilization of
 loss carryforward -- 1,950,000
 Net earnings 2,784,468 4,355,013
 Earnings per common and common
 equivalent share:
 Earnings before extraordinary
 item $0.34 $0.34
 Extraordinary item -- 0.27
 Net earnings $0.34 $0.61
 Weighted average common and common
 equivalent shares outstanding 8,236,676 7,112,988
 Six Months Ended
 11/30/91 11/30/90
 Revenues:
 Managed health care $35,171,456 $26,255,599
 Reinsurance 64,804,286 46,117,752
 Investment 4,071,291 1,280,874
 Total revenues $104,047,033 $73,654,225
 Operating Expenses:
 Loss and loss adjustment exp. 33,842,602 23,067,810
 Salaries and benefits 17,965,492 12,993,064
 Policy acquisition costs 24,680,617 18,225,260
 General and administrative 14,657,297 11,094,010
 Total expenses 91,146,008 65,380,144
 Earnings from operations 12,901,025 8,274,081
 Interest expense 2,694,996 331,936
 Earnings before provision for
 income taxes and extraordinary
 item 10,206,029 7,942,145
 Provision for income taxes 4,079,000 3,275,000
 Earnings before extraordinary
 item 6,127,029 4,667,145
 Extraordinary item-tax benefit
 resulting from utilization of
 loss carryforward -- 3,207,000
 Net earnings 6,127,029 7,874,145
 Earnings per common and common
 equivalent share:
 Earnings before extraordinary item $0.74 $0.67
 Extraordinary item -- $0.46
 Net earnings $0.74 $1.13
 Weighted average common and common
 equivalent shares outstanding 8,259,076 6,957,801
 BALANCE SHEET DATA
 11/30/91 5/31/91
 Working capital $27,282,658 41,772,266
 Total assets 187,881,361 187,767,362
 Long-term debt, including
 current portion 76,165,473 76,901,449
 Shareholders' equity 76,029,008 68,909,701
 -0- 1/15/92
 /CONTACT: Lynne M. Warne of EBP, 612-525-4352/
 (EBP) CO: Employee Benefit Plans, Inc. ST: Minnesota IN: INS SU: ERN


AL -- MN012 -- 9860 01/15/92 09:04 EST
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Date:Jan 15, 1992
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