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ACCESS HEALTH REPORTS 38 PERCENT HIGHER SECOND QUARTER REVENUES, INCREASED EARNINGS

 SACRAMENTO, Calif., May 5 /PRNewswire/ -- Access Health Marketing (NASDAQ: ACCS) today reported a 38 percent revenue increase, record call volumes and higher earnings for the second quarter of fiscal 1993. Reflecting the continued strong acceptance of Access Health's personal health management programs, revenues rose 38 percent to $4,244,000 from $3,065,000 in the prior-year quarter.
 Support services revenues, which are generated by recurring sources, increased 25 percent to $2,953,000, reflecting growth and retention of the client base and higher call volumes during the quarter. Call volumes increased 65 percent to 137,000. In addition to growth in support service revenue during the second quarter, license implementations for the company's Ask a Nurse(R) and Cancer HelpLink(R) products rose 83 percent during the second quarter of fiscal 1993, to $1,291,000 from $705,000 in the corresponding prior- year quarter.
 Before new product development costs, operating income and income before taxes increased 88 percent and 86 percent, respectively, over the corresponding prior-year period. Operating expenses for the quarter included new product development costs of $470,000 related to Access Health's recently formed managed care division. Net income, including product development expenses, increased to $362,000 from $346,000 a year earlier. Per share results were 6 cents for the current-year quarter, based on 20 percent more shares outstanding, vs. 7 cents in the same period last year, attributable to the company's initial public offering in February 1992.
 For the six-month period ended March 31, 1993, revenues increased 34 percent to $7,989,000 from $5,973,000 in the corresponding prior- year period. Call volume for the period rose 55 percent. Before new product development costs, six-month operating income and income before taxes rose 84 percent and 83 percent, respectively, over the prior-year period.
 "I am particularly pleased with the company's performance, especially in light of the investments that are underway for our new managed care products. Our results for the quarter indicate the continued strength of our products for the hospital market which helps hospitals respond to reform-driven changes in the healthcare industry," said Kenneth B. Plumlee, president and chief executive officer. "Revenues related to our programs for managed care organizations and self-insured employers will commence during our third fiscal quarter."
 In the first quarter of fiscal 1993, the company introduced two major new products for the employer and managed care markets, Personal Health Advisor(TM) and the Access Care Management System(TM). During the second quarter of fiscal 1993, Access Health announced the signing of agreements with Blue Cross of California, Provident Life & Accident, Blue Cross and Blue Shield of Oregon and Legacy Health System of Oregon to provide healthcare demand management services to selected members of these plans.
 "Our Blue Cross contracts, which will initially serve approximately 4 percent of the memberships of Blue Cross California and Blue Cross Blue Shield Oregon, together represent an estimated $1.4 million in revenue to Access Health in the first year of contracts. We expect that the successful operation of these pilot programs will lead to expansion of the contracts," Plumlee stated.
 During the first two quarters of fiscal 1993, prior to the commencement of program revenues related to Personal Health Advisor and the Access Care Management System, additional costs, such as sales and marketing, new personnel, training and pre-implementation services, were incurred related to contracts with initial managed care customers.
 "Our products are designed to support reform-driven changes by helping to improve the quality of care and reduce costs," Plumlee said. "We believe personal health management services represent a significant and compelling opportunity for Access Health. Based on strong market response to our new products we plan to continue our strategy of investing in new product development and expanding our sales and marketing organization to assure Access Health's leadership role. In addition, we will expand our call center capacity during the remainder of the year."
 Access Health's personal health management programs help managed care organizations, self-insured employers and hospitals manage consumer demand for healthcare services. Its telephone-based programs feature health information, prevention and care management services, which are designed to improve patient access, ensure the cost-effective delivery of care and promote member satisfaction by providing consumers with information they need to make better health care decisions and avoid unnecessary or inappropriate care.
 ACCESS HEALTH MARKETING INC.
 Condensed Consolidated Statements of Operations
 ($ in thousands except per share amounts)
 (Unaudited)
 Three Months Six Months
 Ended March 31, Ended March 31,
 1993 1992 1993 1992
 Revenues:
 Support services $2,953 $2,360 $5,501 $4,595
 License implementations 1,291 705 2,488 1,378
 Total revenues 4,244 3,065 7,989 5,973
 Costs and expenses:
 Cost of revenues:
 Support services 1,736 1,347 3,275 2,530
 License implementations 361 314 659 587
 Sales and marketing 704 610 1,291 1,303
 General and administrative 464 273 939 560
 Product development 470 0 861 0
 Total costs and expenses 3,735 2,544 7,025 4,980
 Income from operations 509 521 964 993
 Other income 95 55 190 108
 Income before income taxes 604 576 1,154 1,101
 Provision for income taxes 242 230 462 440
 Net income $362 $346 $692 $661
 Net income per share $.06 $.07 $.11 $.13
 Shares used in per share
 calculations 6,363 5,284 6,308 4,996
 -0- 5/5/93
 /CONTACT: John E. Gebhart III of Access Health Marketing, 916-851-4000; or Craig A. Parsons of Pondel Parsons & Wilkinson, 310-207-9300, for Access Health Marketing/
 (ACCS)


CO: Access Health Marketing ST: California IN: HEA SU: ERN

LS-JL -- LA013 -- 4738 05/05/93 09:16 EDT
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Date:May 5, 1993
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