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CARENETWORK RECORDS THIRD QUARTER 1992 LOSS

 CARENETWORK RECORDS THIRD QUARTER 1992 LOSS
 MILWAUKEE, Oct. 28 /PRNewswire/ -- CareNetwork, Inc. (NASDAQ: CRNT)


announced a $3,644,000 loss on revenues of $45,827,000 in the third quarter of 1992. For the nine months ended Sept. 30, 1992, a loss of $4,934,000 was realized on revenues of $136,358,000. The quarterly and year-to-date results include tax benefits of $1,802,000 and $2,689,000, respectively, due to net operating loss carrybacks.
 On a per share basis, the third quarter of 1992 results reflect an $.80 per share loss, compared to a $.22 per share gain for the third quarter of 1991. For the nine months ended Sept. 30, 1992, a $1.06 per share loss was recognized compared to an $.82 per share gain for the nine months ended Sept. 30, 1991.
 Third quarter 1992 revenues were up 14.6 percent over the third quarter of 1991 revenues of $40,005,000. WHO enrollment as of Sept. 30, 1992, was 140,629, a 2.5 percent increase over 137,142 as of Sept. 30, 1991. Network EPO enrollment was 5,968 members.
 The company established reserves of approximately $2,000,000 that recognize potential provider group deficits and termination costs of WHO service contracts with certain independent physician associations. In addition, higher physician costs further increased health care expenses over the second quarter of 1992. The company recognized $266,000 for expenses related to severance agreements of former executives.
 "We are financially sound with $30 million in cash and investment securities," said John C. Moats, interim chief executive officer, CareNetwork, Inc. "Our board of directors is committed to maximize shareholder value." In reference to the company's operational problems, he stated, "We have seen improvements in claims processing and accuracy of utilization information. This progress is reflected in recent provider contract renewals for 1993."
 CARENETWORK, INC.
 SUMMARY OF FINANCIAL RESULTS
 THIRD QUARTER 1992
 (Dollars in thousands, except per share data)
 Third Quarter
 1992 1991
 Total revenues $45,827 $40,005
 Medical expenses 46,376 35,673
 Administrative expenses 5,155 3,193
 Operating income (loss) (5,704) 1,139
 Other income 258 542
 Tax benefit (expense) 1,802 (558)
 Net income (loss) $(3,644) $1,123
 Earnings (loss) per share $(.80) $.22
 Cash & invest. securities $30,618 $42,604
 Net property, plant & equipment 8,900 6,080
 Net tangible book value 24,151 31,783
 Medical loss ratio (percent) 101.4 89.3
 Admin. expense ratio (percent) 11.2 8.0
 Weighted average shares
 outstanding (000s) 4,533 5,033
 Nine Months
 1992 1991
 Total revenues $136,358 $118,196
 Medical expenses 130,481 104,657
 Administrative expenses 14,338 9,384
 Operating income (loss) (8,461) 4,155
 Other income 838 1,264
 Tax benefit (expense) 2,689 (1,848)
 Minority interest -- 27
 Net income (loss) $(4,934) $3,544
 Earnings (loss) per share $(1.06) $.82
 Medical loss ratio (percent) 95.9 88.7
 Admin. expense ratio 10.5 7.9
 Weighted average shares
 outstanding (000s) 4,669 4,332
 CareNetwork, Inc. is the parent company for Wisconsin Health Organization Insurance Corp.; Network EPO, Inc.; Geneva Benefits Administration, Inc.; and CareNetwork Medical Management Corp.
 -0- 10/28/92
 /CONTACT: John C. Moats, interim chief executive officer, 414-223-0176; Thomas R. Sobocinski, executive vice president & chief marketing officer, 414-223-7714; Patrick A. Roberts, vice president, finance, 414-223-7752; or Walter R. Barry, manager of investor relations, 414-223-0172; all of CareNetwork/
 (CRNT) CO: CareNetwork, Inc. ST: Wisconsin IN: INS MTC SU: ERN


KH -- MN027 -- 6271 10/28/92 17:18 EST
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Date:Oct 28, 1992
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