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CBL RESTRUCTURES MANAGEMENT AGREEMENTS WITH SIX MEDICAL CENTERS

 LOS ANGELES, May 12 /PRNewswire/ -- CBL Medical Inc. (NASDAQ: CBLM) announced today that effective May 1, 1993, it temporarily suspended its Management Agreement with six Northern California medical centers owned by its affiliated Physician Groups; simultaneously, the Physician Groups entered into a management agreement with an unrelated company. Concurrently, CBL entered into an operating agreement with the same unrelated company to provide certain services for these centers.
 These interim agreements are for a 90-day period, following which, CBL will enter into a five-year agreement to provide certain services for a fee equal to 5 percent of aggregate gross billings of the six centers, not to exceed $1,875,000 in total. At the same time, but in a separate and unrelated transaction, the owners of the Physician Groups will sell their practices for an amount equal to 1 percent of aggregate gross billings for five years, not to exceed $375,000 in total. The five-year agreements are subject to completion of the buyer's due diligence.
 Robert B. Mishkin, president and chairman of the board, said, "The completion of these transactions is an important element in enabling CBL to reach its goals of attaining positive cash flow, strengthening its financial condition and maintaining acceptable profit margins."
 CBL Medical Inc. currently manages 10 medical centers and co-owns four Work Simulation Centers.
 -0- 5/12/93
 /CONTACT: Mike Porter, 212-564-4700, for CBL Medical/
 (CBLM)


CO: CBL Medical Inc. ST: California IN: HEA SU: CON

LS-JL -- LA014 -- 7394 05/12/93 09:03 EDT
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Publication:PR Newswire
Date:May 12, 1993
Words:250
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