First American Health Concepts Inc. Expands Into California.

Business Editors/Health & Medical Writers

PHOENIX--(BW HealthWire)--Jan. 19, 2000

First American Health Concepts Inc. (AMEX: FAH), which markets and administers third-party managed vision care plans nationwide under the trade name Eye Care Plan of America (ECPA), Wednesday announced the licensing of its subsidiary, Eye Care Plan of America - California Inc. (ECPA-CA), to act as a Specialized Knox-Keene Health Care Service Plan.

The license grants the company authority to market prepaid managed vision care plans in California.

"Because of its population and its benefits potential, California is one of the most important U.S. optical markets," said John A. Raycraft, president of First American.

"It has been a priority for First American to expand our business in this region as part of a strategy to serve customers throughout the country. The licensing process is required to acquire additional customers and to increase market share. We are pleased that this effort has come to fruition with the establishment of our local company, ECPA-CA."

First American began staffing ECPA-CA in conjunction with the Knox Keene application process.

"The application for licensure is a significant and time consuming hurdle. The California Department of Corporations requires the applicant to have extensive local operational and overhead items in place, therefore we are ready to begin operations immediately," said ECPA-CA President, Robert Pyle.

ECPA-CA is not expected to contribute to earnings before fiscal 2002 due to start up costs associated with marketing and operations, as well as the time required to build revenues in this cyclical business.

"Many companies maintain calendar year benefit plans that began January 1, 2000," explained Raycraft. "We see the next 11 months as an opportunity to prepare ourselves for significant enrollment and subsequent growth in revenue to occur in January 2001," he said. "We expect the results from those enrollments will begin to be seen in the company's overall earnings in fiscal 2002."

This release contains forward-looking statements which may involve known and unknown risks, uncertainties and other factors that may cause actual results and performance to be materially different from any future results or performance suggested by these statements.