FPA Medical Management and AHI Healthcare Systems shareholders approve merger.

SAN DIEGO & DOWNEY, Calif.--(BUSINESS WIRE)--March 17, 1997--FPA Medical Management, Inc. (NASDAQ:FPAM) and AHI Healthcare Systems, Inc. (NASDAQ:AHIS) announced today that their merger was completed. Each share of AHI Healthcare System's common stock will be exchanged for .391 shares of FPA Medical Management's common stock based on FPA's average closing price of $22.99 during the measurement period. Based on AHI's 14,551,541 shares outstanding, the aggregate consideration was approximately 5,689,652 shares of FPA common stock or approximately $117 million based on the $20.56 closing price of FPA's common stock on the Nasdaq National Market on March 14, 1997.

Dr. Seth Flam, FPA's President and Chief Executive Officer, stated, "This transaction with AHI advances FPA's position as the largest primary care physician practice management company in the country. We are proud to merge with a company that shares our commitment to primary care and quality."

"The merger will immediately add more than 200,000 HMO enrollees serviced through FPA's affiliated physicians, expand FPA's primary care operations into three new markets, and adds nine HMO payors to the FPA network," commented Dr. Sol Lizerbram, Chairman of FPA.

Steven M. Lash, FPA's Executive Vice President and Chief Financial Officer commented, "We are pleased to complete our merger with AHI Healthcare Systems. Based on the final terms of the agreement, the transaction will provide immediate accretion to FPA shareholders and will bring the Company's total 1996 annualized revenue to nearly $1 billion."

Dr. Leonardo Berezovsky, AHI's Chairman and Chief Executive Officer, stated, "On behalf of AHI management, we are proud to be affiliated with such a high quality company. The combined entity will clearly advance the primary care focus in the managed care industry."

FPA Medical Management, Inc. is a national healthcare management service organization that organizes and manages primary care physician networks to contract with HMO's and other prepaid health insurance plans to provide physician and related healthcare services and provides contract management and support services to hospital based emergency departments.

Certain statements contained in this release are forward looking. Although FPA Medical Management, Inc. believes that its expectations are based on reasonable assumptions within the bounds of their knowledge of its business and operations, there can be no assurance that actual results will not differ materially from its expectations. Factors that could cause actual results to differ from expectations include the difficulty in controlling healthcare costs and integrating new operations from acquired companies and the possible negative effects of prospective healthcare reform. For other important factors that may cause actual results to differ materially from expectations and underlying assumptions, see reports by FPA Medical Management, Inc. and AHI Healthcare Systems, Inc. filed with the Securities and Exchange Commission.

CONTACT: Investor Contact:

Steven M. Lash

Executive Vice President and

Chief Financial Officer

FPA Medical Management, Inc.

619-453-1000

or

Robert P. Jones/Jill Ruja

Media Contact: Miriam Adler

Morgen-Walke Associates

212-850-5600