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PROVIDENCE HEALTH CARE, INC. ADOPTS

 BEREA, Ohio, July 29 /PRNewswire/ -- Providence Health Care, Inc. (NASDAQ: PHCI) reported today that its Board of Directors has adopted a stock purchase rights plan. Lawrence Cummings, chairman of the board of Providence, said that "The adoption of the stock purchase rights plan is intended to enhance shareholder value by permitting our stockholders to benefit from the long-term value of the Company, and to deter unfair, inadequately priced or other attempts to acquire Providence Health Care on terms not approved by the Board of Directors."
 Distribution of the Rights does not affect the Company's financial condition, has no dilutive effect, is not taxable to the Company or its stockholders and does not affect reported earnings per share. Nor will it change the way in which shares of Providence Health Care, Inc.'s common stock currently trade.
 Under the Plan, a right to purchase one one-thousandth of a share of a new series of Providence Health Care, Inc. preferred stock will be distributed on Aug. 12, 1993 as a dividend on each share of common stock to all persons who were holders of record on July 27, 1993. The Rights will expire on July 27, 2003 and are redeemable by the Board of Directors under certain circumstances set forth in the Plan.
 The Rights Plan provides for the purchase of Providence Health Care, Inc. common stock by Rights holders at reduced prices under certain circumstances, including the acquisition by any person or group of more than 25 percent of the Company's outstanding common stock. In such event, each Right holder (other than the acquiring company) will become entitled to buy a number of additonal shares of common stock having a market value of twice the exercise price of each Right, which has initially been set at $10.
 If an acquiring company engages in a merger or other business combination with Providence Health Care, Inc. after the Rights become exercisable, the Rights will entitle holders (other than the acquiring company) to buy a number of shares of common stock of the acquiring company having a market value of twice the exercise price of each Right.
 Providence Health Care is a provider of long-term nursing care, principally in the state of Ohio. The Company operates 13 nursing facilities in Ohio, one in Vermont and one in Virginia for an aggregate of 1,245 beds. Providence also has a contract to manage a 175-bed facility in Ohio.
 -0- 7/29/93
 /CONTACT: Lawrence B. Cummings, chairman, president & CEO, Providence Health Care, Inc., 216-243-4732/
 (PHCI)


CO: Providence Health Care, Inc. ST: Ohio IN: HEA SU:

LC -- CL032 -- 7510 07/29/93 18:22 EDT
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Publication:PR Newswire
Date:Jul 29, 1993
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