First American Health Concepts continues building for the future.

PHOENIX--(BUSINESS WIRE)--March 14, 1995--First American Health Concepts, Inc. (NASDAQ:FAHC), has announced significant progress in the roll-out of a broad-based program designed to substantially grow its revenues and earnings into the future.

The company has and will continue to invest aggressively and prudently in developing and acquiring the resources essential to capitalize on the growing success of its managed eyecare programs and services marketed under the trade name Eye Care Plan of America (ECPA).

FAHC, which recently announced record second quarter and six-month revenues, has seen significant growth in its managed eyecare lines since their introduction in 1993.

"The existing market for managed eyecare is enormous," company President and Chief Executive Officer John A. Raycraft stated. "Insured and self-funded products represent the fastest growing segment of ECPA's business and the company is well-positioned to market these plans which can be readily serviced by our existing provider network."

While the managed vision care industry is still young, it is expected to grow rapidly over the next five years. According to a Booz Allen & Hamilton Inc. industry study, the market for managed vision care services is projected to grow at 15 percent annually, the fastest growing segment of the U.S. vision care industry.

The dynamics of the vision care business are changing rapidly, and FAHC plans to continue focusing its investments in those areas essential to providing the full range of capabilities necessary to capture a major share of this anticipated market growth.

Progress toward expanding FAHC's professional and highly-motivated sales staff will continue. "Marketing and selling the new self-funded and insured programs are both fundamentally different and more sophisticated than ECPA's unique non-insured program," Raycraft said.

Expansion of FAHC's internal marketing and sales support organization, along with upgraded customer account management capabilities, will also enable FAHC's highly-skilled sales staff to focus their efforts on generating new revenues through the effective use of redesigned marketing materials and enhanced sales support operations.

"Our strategy over the next 12 to 18 months is to focus on growing the managed vision care business," Raycraft said. "However, because a majority of employee benefit plans are pegged to a calendar year, revenue growth cannot be expected to develop uniformly on a quarterly basis."

FAHC will also continue to invest in the company's claim processing capabilities for the insured and self-funded business to assure delivery of the highest levels of performance and service to ECPA members.

First American will concentrate on its core business and will also be alert to strategic acquisition opportunities that will support the core business and enhance shareholder value. In addition, the company announced plans last week to repurchase up to five percent of its common stock for up to $1 million. FAHC's overall financial condition and liquidity are strong with nearly $4.3 million in cash and marketable securities, and working capital exceeding $3.8 million. Total assets were $6.6 million at Jan. 31, 1995.

First American Health Concepts, which recently moved up to NASDAQ's National Market System, markets and administers third-party vision care plans under the trade name Eye Care Plan of America (ECPA). The company serves nearly 10 million members and maintains the largest provider network of its type.

CONTACT: Charlotte Buchen Communications, 602/952-8050