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CARENETWORK ANNOUNCES TENTATIVE SETTLEMENT TO SHAREHOLDER LAWSUIT

 MILWAUKEE, Jan. 13 /PRNewswire/ -- CareNetwork, Inc. (NASDAQ: CRNT) announced today that a tentative settlement agreement has been reached among the parties to the consolidated shareholder securities litigation, Steinberg v. CareNetwork, Inc. et. al. The tentative settlement agreement, which is subject to a number of conditions including preparation of definitive agreements and court approval, calls for a payment by the company of $1.5 million and additional payments by some of the other defendants in exchange for a release
of the plaintiffs' claims. The company's settlement payment approximates the $1.5 million litigation accrual announced in the third quarter 1993, so it is not expected to result in a material charge to earnings.
 "The CareNetwork board of directors and I are very pleased to close this chapter as we see continued progress on the company turnaround," said Elwood I. Kleaver, Jr., president and chief executive officer of CareNetwork, Inc. "We consider the settlement prudent to avoid ongoing legal and business costs associated with continuing to defend the litigation," he added.
 CareNetwork, Inc. is the parent company for Wisconsin Health Organization Insurance Corporation; Network EPO, Inc.; and CNI Medical Management Corporation.
 -0- 01/13/94
 /CONTACT: Elwood I. Kleaver, Jr., president and chief executive officer, 414-223-7712; or Walter R. Barry, director of corporate communications, 414-223-0172, both of CareNetwork/
 (CRNT)


CO: CareNetwork, Inc. ST: Wisconsin IN: INS SU:

CP-DB -- MN012 -- 1878 01/13/94 16:17 EST
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Publication:PR Newswire
Date:Jan 13, 1994
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