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PREMIER ANESTHESIA REPORTS FIRST QUARTER RESULTS; CONSISTENT WITH PREVIOUSLY ANNOUNCED ESTIMATE

 ATLANTA, May 10 /PRNewswire/ -- Premier Anesthesia, Inc. (NASDAQ: PRAN), the nation's leading provider of contract anesthesia services to hospitals and clinics, today reported a first quarter net loss of $1.2 million or 14 cents per share, which was slightly less than the estimated first quarter loss anticipated and announced in late March.
 Net revenues for the three months ended March 31, 1993, totalled $20.5 million, a 61 percent increase over the $12.7 million net revenues reported for the same period last year. The 14 cents loss per share on the $1.2 million net loss in the first quarter this year compared to earnings per share of six cents on $388,000 in net income for the first quarter of 1992.
 About half of the first quarter 1993 revenue increase over 1992 was due to the Dec. 31, 1992, acquisition of National Pain Institute, Inc. (NPI), which treats acute and chronic pain, primarily through out-patient centers. This acquisition was accounted for as a purchase. Accordingly, the company started to recognize NPI's revenue in January 1993. The remaining revenue increase was attributable to growth in contract revenue associated with starting 11 anesthesia contracts between April 1, 1992, and March 31, 1993. Three new contracts were added in the first quarter, offset by two contract terminations.
 NPI is primarily responsible for the company's first quarter loss. Delays in closing the NPI purchase transaction and related deferred marketing activity caused NPI's patient visits and resulting revenue to decline significantly. In addition, NPI incurred some restructuring costs to resolve some operational issues.
 Despite the growth in anesthesia contract revenue, the company experienced a decline in its profitability due to start-up expenses associated with the development of three new subsidiaries -- contract radiology services; locum tenens (temporary) physician staffing; and anesthesia systems. In addition, the company relocated its corporate headquarters and increased its staff in anticipation of incremental anesthesia contracts delayed in the sale process.
 Richard D. Ballard, president and chief executive officer, summed up the results by saying, "The first quarter was a disappointment, but we are positioned to resume profitable operations. NPI's patient visit traffic has returned to normal levels. We do not anticipate any more quarterly losses this year and still expect to report earnings per share of at least 25 cents for 1993 on revenues of approximately $100 million." Ballard added that "our potential sales funnel for anesthesia contracts has enough qualified prospects to grow the business in line with our expectations." In 1992, the company reported earnings of $2.6 million, or 30 cents per share, on revenue of $58.8 million.
 PREMIER ANESTHESIA, INC.
 Consolidated Statements of Operations (Unaudited)
 Quarter ended March 31 1993 1992
 Net revenues $20,461,195 $12,680,725
 Direct expenses 16,145,703 10,629,407
 Gross margin 4,315,492 2,051,318
 Operating expenses:
 Salaries and benefits 3,426,272 1,129,018
 Other 3,020,542 456,588
 Total 6,446,814 1,585,606
 Income (loss) from operations (2,131,322) 465,712
 Other income, net 99,414 208,104
 Income (loss) before income taxes (2,031,908) 673,816
 Income tax expense (benefit) (828,874) 269,608
 Net income (loss) (1,203,034) 404,208
 Dividends and accretion on preferred stock -- 15,733
 Net income (loss) applicable
 to common stock (1,203,034) 388,475
 Net income (loss) per common share (.14) 0.06
 Weighted average shares outstanding 8,705,829 7,030,450
 -0- 5/10/93
 /CONTACT: Joseph G. Bleser, executive vice president and chief financial officer, 404-390-3613, or Linda S. Hammock, vice president- finance, 404-458-4358, both of Premier Anesthesia, Inc., or Hal Le Vay of Porter, Le Vay & Rose, Inc., 212-564-4700, for Premier Anesthesia/
 (PRAN)


CO: Premier Anesthesia, Inc. ST: Georgia IN: HEA SU: ERN

TS-OS -- NY093 -- 6676 05/10/93 16:47 EDT
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Date:May 10, 1993
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