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AMERICA SERVICE GROUP REPORTS EARNINGS FOR 1992

 NEW CASTLE, Del., March 2 /PRNewswire/ -- America Service Group Inc. (NASDAQ: ASGR), today reported income for the year ended Dec. 31, 1992, of $1,776,000 or 49 cents per share, before an extraordinary charge.
 This compares to prior year earnings of $2,953,000 or 83 cents per share, before an extraordinary benefit. For the quarter ended Dec. 31, 1992, income was $505,000 or 14 cents per share, before an extraordinary charge, compared to $867,000 or 25 cents per share, before an extraordinary benefit, for the fourth quarter of 1991.
 Net income for 1992, including an extraordinary charge, was $66,468 or 2 cents per share, compared to net income of $3,557,842 or $1 per share, in 1991, including an extraordinary credit.
 For the year, revenues increased 28.5 percent to $77.3 million from $60.2 million in 1991. The rise in revenues was attributed to the addition of several new contracts, contractual and newly negotiated price increases under existing contracts and an increase in the number of inmates covered by existing contracts of the company's Prison Health Services subsidiary. Health care expenses increased 39.4 percent to $66.7 million for 1992 from $47.9 million for the prior year. As a percentage of revenues, health care expenses continued their upward trend because of increased offsite medical expenses. Health care expenses continue to be impacted by increases in the cost of workers compensation, health dental, and unemployment insurance.
 The extraordinary charge in the fourth quarter of 1992, which reduced net income by $1,710,000 or 47 cents per share, resulted from a previously announced settlement in February 1993 of litigation with Doyle H. Moore, one of the company's founders. Of the total amount of the charge, $1,300,000 represented a settlement payment to Moore and the balance represented associated litigation costs. The extraordinary benefit in 1991 of $605,400 or 17 cents per share, resulted from the utilization of net operating loss carryforwards.
 Jeffrey A. Reasons, president and chief executive officer, said that "the company continues to experience strong growth in revenues. With the commencement of our first Department of Defense contract through our ASG Management Company subsidiary in October and the acquisition of our UniSource pharmacy operation in September, we are in a position to continue to develop our role in the managed health care market. The recent litigation settlement will permit management to concentrate on the business of health care."
 America Service Group Inc. trades as "ASGR" on the NASDAQ National Market System. Through its subsidiaries, Prison Health Services, Inc. (PHS), and ASG Management Company, Inc. (ASGM), ASGR contracts to provide managed health care services to correctional facilities throughout the United States and to federal governmental agencies. Through its newest subsidiary, UniSource, ASGR packages and sells pharmaceutical and related products to physicians, maritime vessels and to institutions where health care services are currently being delivered through PHS and ASGM.
 AMERICA SERVICE GROUP INC.
 Results of Operations
 (Unaudited; in thousands, except per-share amounts)
 Periods ended Three months Year
 Dec. 31 1992 1991 1992 1991
 Revenue $21,330 $17,441 $77,299 $60,172
 Health care expense 18,836 13,902 66,697 47,850
 Gross profit 2,494 3,539 10,602 12,322
 SG & A expense 1,884 2,242 8,483 7,917
 Income from operations 610 1,297 2,119 4,405
 Other income 146 140 687 498
 Income taxes (251) (570) (1,030) (1,345)
 Charge equivalent to benefit
 of loss carryforwards --- --- --- (605)
 Income before extraordinary item 505 867 1,776 2,953
 Extraordinary item:
 Tax benefit from NOL --- --- --- 605
 Costs of litigation
 settlement (1,710) --- (1,710) ---
 Net income (1,205) 867 66 3,558
 EPS before extraordinary item $.14 $.25 $.49 $.83
 EPS after extraordinary item (.33) .25 .02 1.00
 Common & common equivalent
 shares outstanding 3,272 3,472 3,608 3,558
 /delval/
 -0- 3/2/93
 /CONTACT: Margaret O. Harrison, CFO of America Service Group, 302-888-0200/
 (ASGR)


CO: America Service Group Inc. ST: Delaware IN: HEA SU: ERN

JS-MJ -- PH009 -- 1926 03/02/93 11:51 EST
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Date:Mar 2, 1993
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