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UNITED AMERICAN HEALTHCARE CORPORATION ANNOUNCES STRONG FIRST-QUARTER RESULTS

 UNITED AMERICAN HEALTHCARE CORPORATION
 ANNOUNCES STRONG FIRST-QUARTER RESULTS
 DETROIT, Nov. 6 /PRNewswire/ -- United American Healthcare Corporation (NASDAQ: UAHC) today announced an 11-percent increase in net income for the first quarter ended Sept. 30, 1992, along with a 21-percent increase in management fees from related parties.
 Total revenues for the quarter this year do not include revenues from the discontinued CountyCare business. This year's first-quarter revenues without CountyCare were $7,008,203 compared with the first- quarter last year's total of $8,922,254 which included $3,110,185 of CountyCare revenue.
 "Therefore, we are very pleased that on a comparable basis our revenues rose 21 percent to $7,008,203 from $5,812,069 without CountyCare which was only minimally profitable," said chairman Julius V. Combs, M.D.
 In this year's quarter, management fees from related parties rose 21 percent to $6,787,093, from $5,621,943 in the comparable quarter a year ago. As earlier indicated, a 1991 Medicaid rate increase adjustment for OmniCare Health Plan resulted in a one-time payment of $396,000 to United American in this year's first-quarter revenues.
 Earnings before income tax expense were up 12 percent to $1,980,801 from $1,772,372. Promotion and advertising expense were up sharply by $367,000, or 87 percent, as United American stepped up media exposure in both Detroit and Cleveland.
 Net earnings in the first quarter this year were $1,329,801, or 26 cents a share. For the year-earlier period, the company posted net earnings of $1,199,972, or 24 cents a share. There were 5,060,393 shares outstanding in both reporting periods.
 "We want to make it clear that, while overall revenues are lower, the quality of earnings has, in fact, improved," said Julius V. Combs, M.D. "Management fee revenue has always been more profitable than the CountyCare program and carries no risk of medical loss.
 "Advertising and promotion expenses were up sharply in the first quarter. These expenses were unusually high for a first quarter. We decided to 'strike while the iron is hot' to market Omnicare's Sick Child Benefit. We know of no other HMO in the country with this product and want to take advantage of OmniCare's competitive edge. We are also pushing hard with marketing Personal Physician Care in the Cleveland area.
 "The second quarter is typically our most critical marketing period. Therefore, advertising and promotion expenses will continue but will not be out of line with expenses for the same quarter last year," Dr. Combs said.
 United American Healthcare Corp. is a health-care management company. UAHC provides a full range of services to two health maintenance organizations -- OmniCare Health Plan in Southeast Michigan and Personal Physician Care of Ohio, based in Cleveland. The company's strategy is to expand its expertise into avenues such as Third Party Administrator services as it has done with Detroit's Bing Group.
 Three Months Ended
 September 30,
 Medical Loss Ratio 1992 1991
 OmniCare Health Plan 84 pct 80 pct
 Personal Physician Care 79 pct 76 pct
 September 30,
 Managed Care Enrollment 1992 1991
 OmniCare Health Plan 94,861 92,179
 Personal Physician Care 16,454 17,383
 United American Healthcare Corporation and Subsidiary
 CONSOLIDATED STATEMENTS OF EARNINGS
 (Unaudited)
 Three months ended
 September 30,
 1992 1991
 Revenues
 Management fees from
 related parties $ 6,787,093 $ 5,621,943
 Wayne County capitation fees --- 3,110,185
 Interest and other 221,110 190,126
 Total revenues 7,008,203 8,922,254
 Expenses
 Salaries, fringe benefits
 and payroll taxes 2,664,861 2,364,602
 Promotion and advertising 786,258 419,036
 Depreciation and amortization 124,992 104,438
 General, administrative and
 other operating expenses 1,451,291 1,229,667
 Wayne County medical payments --- 3,032,139
 Total expenses 5,027,402 7,149,882
 Earnings before income
 tax expense 1,980,801 1,772,372
 Income tax expense 651,000 572,400
 Net earnings $ 1,329,801 $ 1,199,972
 Net earnings per common
 share $ .26 $ .24
 Shares Outstanding 5,060,393 5,060,393
 -0- 11/6/92
 /CONTACT: Dr. Julius V. Combs, M.D., chairman and CEO, United American Healthcare Corporation, 313-393-0200; or Dixie Watterson, 708-564-5610, Mark Perlgut, 212-874-6800, or Earle Brown, 813-796-1452, all of The Investor Relations Company, for United American Healthcare Corporation/
 (UAHC) CO: United American Healthcare Corporation ST: Michigan IN: HEA SU: ERN


DH -- DE002 -- 8077 11/06/92 09:36 EST
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Date:Nov 6, 1992
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