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CARENETWORK REPORTS A $.45 PER SHARE FIRST QUARTER 1993 LOSS

 MILWAUKEE, May 4 /PRNewswire/ -- CareNetwork, Inc. (NASDAQ: CRNT) announced a $2.0 million net loss on revenues of $40.0 million in the first quarter of 1993. On a per share basis, the first quarter of 1993 results reflect a $.45 per share net loss, compared to an $.11 per share net loss for the first quarter of 1992.
 First quarter 1993 revenues were down 10.7 percent from the first quarter of 1992 revenues of $44.8 million. WHO enrollment as of April 1, 1993 was 105,380, a 20.1 percent decrease from 131,821 as of Dec. 31, 1992. Network EPO enrollment was 4,581 members.
 "The first quarter loss was expected and is unacceptable," said Elwood I. Kleaver, Jr., the president and chief executive officer of CareNetwork, Inc. "Since my arrival in mid-February, I have identified the functional areas that need improvement, am implementing specific plans in each area, and am measuring outcomes. My vision for CareNetwork going forward is to create customer health care value as measured by cost containment, customer satisfaction and health outcomes improvements.
 "During the last two months, we have implemented improvements to inpatient pre-certification and medical appropriateness reviews to provide WHO and Network EPO members the highest quality, most cost- effective, and most medically appropriate health care. We are enhancing on-site case management to reduce inpatient stays and are implementing a program to monitor billing practices which reflect proper and acceptable billing standards. This summer we will enhance our provider profiling to reduce medical cost variations and improve medical outcomes within our delivery network.
 "These are examples of the outcomes-oriented plan to improve utilization management. Going forward, I will be creating a 'customer- first' corporate culture, streamlining decision-making responsibility and accountability, and implementing changes in hospital and IPA contracting with the goal of developing win-win-win relationships with our customers and providers.
 "The board of directors and management are committed to renew its stakeholder relationships and to create shareholder value as a result of these turnaround efforts."
 CARENETWORK, INC.
 SUMMARY FINANCIAL RESULTS
 (Dollars in thousands, except per share data)
 First Quarter Ending
 3/31/93 3/31/92
 Total revenues $39,997 $44,793
 Medical expenses 37,560 41,352
 Administrative expenses 4,703 4,670
 Operating loss (2,266) (1,229)
 Other income 228 267
 Tax benefit (expense) -- 412
 Net loss $(2,038) $(550)
 Loss per share $(.45) $(.11)
 Cash & invest. securities $21,603 $30,197
 Net property, plant and equipment 8,310 9,300
 Net tangible book value(a) 18,787 30,492
 Medical loss ratio (percent)(b) 94.1 92.5
 Admin. Expense Ratio (percent)(c) 11.8 10.4
 End of period shares outstanding (000s) 4,533 4,848
 Weighted average shares outstanding (000s) 4,533 4,879
 (a) Net tangible book value is defined as total shareholders' equity less goodwill.
 (b) Medical loss ratio is defined as total health care services expenses divided by subscriber premiums earned.
 (c) Administrative expense ratio is defined as selling, general and administrative expenses divided by total operating revenue.
 CareNetwork, Inc. is the parent company for Wisconsin Health Organization Insurance Corp.; Network EPO, Inc.; Geneva Benefits Administration, Inc.; and CNI Medical Management Corp.
 -0- 5/4/93
 /CONTACT: Elwood I. Kleaver, Jr., president and chief executive officer, 414-223-7712; Thomas R. Sobocinski, executive vice president and chief marketing officer, 414-223-7714; or Walter R. Barry, manager of investor relations, 414-223-0172; all of CareNetwork/
 (CRNT)


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

AL -- MN006 -- 4494 05/04/93 16:14 EDT
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Date:May 4, 1993
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