Health Professionals Inc. announces second quarter results.

FORT LAUDERDALE, Fla.--(BW HealthWire)--May 19, 1997--Health Professionals Inc. (ASE:HPI) Monday announced operating results for the quarter and six months ended March 31, 1997.

Operating revenues for the quarter and six months ended March 31,1997 were $2,331,000 and $4,251,000 compared with $1,781,000 and $3,731,000 for the same period last year. The increase in operating revenues was due to increases in the rendition of physician medical services, practice management services, diagnostic laboratory services and other ancillary medical services, as well as increases in research revenue due to continuing enrollment into ongoing clinical trials and the initiation of new trials.

Selling, general and administrative expenses for the quarter and six months ended March 31, 1997 were $1,296,000 and $2,874,000 as compared with $1,449,000 and $2,659,000 for the same period last year. The increase for the six months ended March 31, 1997 relates primarily to an increase in depreciation and amortization and other expenses related to the purchases of clinics in fiscal year 1996 and first quarter fiscal 1997.

The company sustained a loss from operations of $(206,000), or $(.04) per share, for the quarter ended March 31, 1997, compared with a loss of $(83,000) or $(.00) per share for the same period in 1996. The loss included $262,000 in depreciation and amortization expenses as compared to $283,000 for the same period in 1996. The difference in results for the periods was due to a reversal of reserves totaling $436,000 during the same period last year, coupled with an improvement in the results of current operations.

The company has undertaken a major restructuring of its executive personnel responsibilities and a consolidation of its executive and other personnel functions. Certain non-management staff functions have also been consolidated. Salary and benefit savings from these changes commenced this quarter and will be fully recognized in the third quarter of fiscal 1997. For the fiscal year ending Sept. 30, 1997, the company expects a net reduction of salaries and related expenses, after certain salary increases, of approximately $383,000 with annualized savings of approximately $532,000.

The company is continuing to expand its network of company-owned facilities by acquiring established physician practices. The company is also continuing to expand its clinical research trials participation, its research programs and the development of its information technologies system infrastructure. Certain start-up, acquisition and research and development costs increase the company's deficit in working capital, which deficit should ultimately be offset by increased revenues resulting from these activities. During the first quarter of fiscal 1997, the company acquired the operations of an established medical practice in Los Angeles and in the second quarter has entered into new clinical trials contracts as previously disclosed.

Health Professionals Inc. through its subsidiary CSI, owns and operates an integrated health care delivery and clinical research system that includes a multistate network of primary care and clinical research facilities specializing in immune system disorders, consisting primarily of HIV, AIDS, and Chronic Fatigue Immune Dysfunction Syndrome (CFIDS). -0-

                      HEALTH PROFESSIONALS INC.

                  THREE MONTHS ENDED           SIX MONTHS ENDED
                       MARCH 31                    MARCH 31
                  1997          1996          1997          1996
              ------------  ------------  ------------  ------------
Operating
  Revenues    $  2,331,000  $  1,781,000  $  4,251,000  $  3,731,000

Selling, general
  and
  administrative
  expenses    $  1,296,000  $  1,449,000  $  2,874,000  $  2,659,000

Provision
  (Recovery) for
  loss on
  advanced & other
  professional
  reserves    $     67,000  $   (436,000) $     96,000  $   (895,000)

Net Income
  (loss)      $   (206,000) $    (83,000) $ (1,142,000) $    (51,000)

Net loss per
  share               (.04)         0.00         (0.24)         0.00

Cash flow from
  operations            --            --  $   (864,000) $  2,521,000

Weighted average
  number of shares
  outstanding     4,666,000     2,189,000     4,666,000     2,189,000


BALANCE SHEET DATA:            MARCH 31        SEPT. 30
                                 1997            1996
                             ------------    ------------
Current Assets               $  4,422,000    $  3,743,000

Total Assets                 $ 12,569,000    $ 12,242,000

Current Liabilities          $  6,064,000    $  5,416,000

Long-Term Debt               $  2,079,000    $  1,519,000

Stockholders Equity          $  4,426,000    $  5,307,000

CONTACT: Health Professionals Inc.

Ingrid Howe, 954/766-2552