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CARENETWORK RECORDS 90.4 PERCENT EARNINGS INCREASE

 CARENETWORK RECORDS 90.4 PERCENT EARNINGS INCREASE
 MILWAUKEE, Feb. 20 /PRNewswire/ -- CareNetwork, Inc. (NASDAQ: CRNT)


announced record earnings increases of 90.4 percent and 202.6 percent for the fiscal year and quarter ended Dec. 31, 1991, respectively. On a per share basis, fiscal year and fourth quarter 1991 results were $1.03 and $0.22 as compared to $0.95 and $0.12 during the comparable periods in the prior year, representing 8.4 percent and 83.3 percent increases, respectively. This reflects the dilution from the issuance of 2,104,083 new shares due to the April 1991 initial public offering.
 1991 earnings were $4,642,000 on revenues of $160,343,000. Fourth quarter earnings results were $1,098,000 on revenues of $42,148,000. Revenue increases for the year and the quarter ended Dec. 31, 1991, were 32.6 percent and 32.0 percent, respectively, over the comparable year and quarter revenues in 1990.
 "This strong year-end and fourth-quarter performance reaffirms our track record of controlled growth and profitability and provides a solid foundation for the implementation of our growth strategy in 1992," said Kipton Kaplan, president and chief executive officer of CareNetwork. "The growth strategy calls for managed care joint ventures with providers and/or employers in regions outside Wisconsin, the acquisition of managed health care specialty businesses to provide our clients a comprehensive product line, and a medical credit card joint venture," he added.
 According to Craig R. Kasten, executive vice president and chief operating officer, "CareNetwork's 1991 results reflect continued revenue growth as well as benefit and administrative cost controls in our existing service areas. We look forward to sustaining these performance levels in 1992 as we expand operations into new regions and product lines."
 CareNetwork, Inc. is the parent company for Wisconsin Health Organization Insurance Corp.; Network EPO, Inc.; Geneva Benefits Administration, Inc.; and CareNetwork Medical Management Corp.
 CARENETWORK, INC.
 SUMMARY FINANCIAL RESULTS
 DEC. 31, 1991
 (In thousands, except per share data)
 FY FY Percent
 1991 1990 Increase
 (Decrease)
 Total revenues $160,343 $120,942 32.6
 Medical expenses 141,632 107,359 31.9
 Administrative expenses 13,668 10,078 35.6
 Operating income 5,043 3,505 43.9
 Net investment income 1,810 1,000 81.0
 Income taxes 2,184 1,567 --
 Minority interest 27 500 --
 Net income $4,642 $2,438 90.4
 Earnings per share $1.03 $0.95 8.4
 Medical loss ratio (pct.) 88.5 88.9 (0.4)
 Administrative expense ratio (pct.) 8.5 8.3 2.4
 Weighted average shares
 outstanding (000s) 4,501 2,563 75.6
 4Q 4Q Percent
 1991 1990 Increase
 (Decrease)
 Total revenues $42,148 $31,934 32.0
 Medical expenses 36,977 28,624 29.2
 Administrative expenses 4,283 2,659 61.1
 Operating income 888 651 36.4
 Net investment income 546 234 133.3
 Income taxes 336 522 --
 Minority interest 0 15 --
 Net income $1,098 $363 202.6
 Earnings per share $0.22 $0.12 83.3
 Medical loss ratio (pct.) 88.0 89.6 (1.8)
 Administrative expense ratio (pct.) 10.2 8.3 22.9
 Weighted average shares
 outstanding (000s) 5,009 2,929 71.0
 -0- 2/20/92
 /CONTACT: Walter R. Barry III of CareNetwork, 414-223-0172/
 (CRNT) CO: CareNetwork, Inc. ST: Wisconsin IN: INS SU: ERN


AL -- MN010 -- 1167 02/20/92 17:47 EST
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Date:Feb 20, 1992
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