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SAFEGUARD HEALTH ENTERPRISES INC. REPORTS THIRD QUARTER NET INCOME AND EARNINGS

 ANAHEIM, Calif., Nov. 9 /PRNewswire/ -- Safeguard Health Enterprises Inc. (NASDAQ-NMS: SFGD), announced today its financial results for the third quarter and nine-month period ended Sept. 30, 1993. Earnings per share of $.22 for the quarter equaled the prior year. Net income was $1,031,000, compared to $1,048,000 a year earlier. Revenue increased 4.9 percent to $15,887,000, compared to $15,148,000 for the same quarter a year ago. Net earnings for the third quarter of 1992 were positively impacted by a one-time gain of $.03 per share for litigation settlement.
 For the nine-month period ended Sept. 30, 1993, earnings per share were $.62, compared to $.63 a year ago. Net income was $2,937,000, compared to $2,993,000 a year earlier. Revenue increased 2.2 percent to $46,751,000, compared to $45,747,000 for the same period a year ago.
 "After relatively slow growth due to the significant economic difficulties occurring in California, we are pleased to report the largest increase in the quarterly revenue in over two years. As a result of the enhanced sales efforts, revenue was up 4.9 percent over the same quarter a year ago. Over 92,000 new members were added during the first nine months of 1993, up 42 percent from the same period last year. These new members offset entirely the loss of membership from continued layoffs in aerospace, defense, retailing and service industry sectors," said Steven J. Baileys, D.D.S., president and chief operating officer.
 "We are continuing to see the results of our significant investment in increased sales and marketing staff over the last nine months. A total of over $.10 per share has been specifically allocated this year to increasing sales and marketing activities of the company. These efforts have produced the largest increase in the number of new members this quarter than in any other quarter in the last two years," said Baileys.
 "The recent introduction of our Preferred Provider Organization product from the company's insurance subsidiary, with over 2,000 dentists participating, positions Safeguard to take advantage of the significant changes which are occurring in the health care industry. As consolidation continues within this industry, the company continues to define its niche within the marketplace by offering quality cost effective dental and vision benefits in a managed care environment," said Baileys.
 Safeguard is a multifaceted managed care company providing benefits to over 660,000 members enrolled in various managed care products, including dental and vision products, dental and vision point-of-service products and life insurance products. The company contracts with over 1,500 organizations and provides benefits through over 2,900 contracting providers. The company also owns 31 dental offices throughout California.
 SAFEGUARD HEALTH ENTERPRISES INC.
 (000s omitted, except per share data)
 Earnings Summary
 Quarter ended Percent of Percent of Percent
 Sept. 30, 1993 Revenue 1992 Revenue Change
 Health care revenue $15,887 100.0 $15,148 100.0 4.9
 Health care expenses 11,522 72.5 11,322 74.7 1.8
 S G&A expense 3,000 18.9 2,563 16.9 17.1
 Other income 161 1.0 455 3.0 (64.6)
 Income before
 income taxes 1,526 9.6 1,718 11.3 (11.2)
 Net income 1,031 6.5 1,048 6.9 (1.6)
 Net income per share $.22 $.22 ---
 Average shares
 outstanding 4,773 4,694 1.7
 Nine months ended Percent of Percent of Percent
 Sept. 30, 1993 Revenue 1992 Revenue Change
 Health care revenue $46,751 100.0 $45,747 100.0 2.2
 Health care expense 33,919 72.6 33,664 73.6 .8
 S G&A expense 8,718 18.6 7,953 17.4 9.6
 Other Income 472 1.0 776 1.7 (39.2)
 Income before income
 taxes 4,586 9.8 4,906 10.7 6.5
 Net income 2,937 6.3 2,993 6.5 1.9
 Net income per share $.62 $.63 ---
 Average shares
 outstanding 4,768 4,753 .3
 Selected Balance Sheet Data
 Percent
 Nine Months Ended Sept. 30, 1993 1992 Change
 Cash and marketable
 securities $18,180 $14,489 25.5
 Current assets 20,406 17,343 17.7
 Current liabilities 2,174 1,901 14.2
 Long-term debt 0 0 ---
 Shareholders' equity 25,914 21,835 18.7
 Total assets 28,519 24,584 16.0
 -0- 11/9/93
 /CONTACT: Ronald I. Brendzel, senior VP, of Safeguard Health Enterprises, 714-778-1005/
 (SFGD)


CO: Safeguard Health Enterprises Inc. ST: California IN: HEA INS SU: ERN

JL-LM -- LA017 -- 2085 11/09/93 09:03 EST
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Date:Nov 9, 1993
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