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CORVEL ANNOUNCES RECORD QUARTERLY RESULTS

 IRVINE, Calif., Jan. 20 /PRNewswire/ -- CorVel Corp. (NASDAQ: CRVL) reported record revenues of $15.8 million for its third fiscal quarter ended Dec. 31, up 30 percent from $12.2 million in the same quarter of the prior year. Net income for the quarter was a record $661,000, or $.16 per share, an increase of 56 percent from the net income of $423,000, or $.10 per share, in the same quarter of the prior year. The company attributes the growth to increasing employer interest in managing health care expenses.
 Revenue for the nine-month period ended Dec. 31 was $44.5 million, up 31 percent from $33.8 million in the prior year. Net income was $1,779,000, up 56 percent from $1,140,000 for the same period in the prior year.
 During the quarter the company announced the signing of a national service agreement with The Home Insurance Co. This agreement established CorVel as the managed care vendor to Home's workers compensation customers throughout the country, and includes the full line of the company's services. "The investments in our branch network and service breadth are beginning to pay off," said Gordon Clemons, CorVel president. "This agreement is evidence of our emergence as a leading health care management organization."
 During the quarter the company continued its expansion of service locations, reaching 100 branches nationwide. Investments in software and related computer systems also were important activities in the quarter. "Despite the weak economy, continuing investment in service locations and technology is a CorVel commitment," said Clemons. "The infrastructure necessary to meet customer needs in the managed competition' environment of the '90s will strongly favor companies with CorVel's technical skills, national presence and breadth of service. Our systems capabilities are a deciding factor with large customers."
 Patient management revenues were strong in the quarter, benefiting from the continuing roll out of the company's Advocacy line of services and systems. Advocacy is designed to integrate the separate activities involved in patient management and to interface with the cost containment services of the company's MedCheck reimbursement management systems. These systems anticipate the needs of national employers for both local service throughout the country and consolidated national reporting.
 CorVel Corp. is an independent nationwide provider of medical cost containment and managed care services designed to address the rapidly escalating costs of workers compensation. The company operates from 100 offices providing service in 42 states.
 CORVEL CORP.
 Quarterly Income Statement
 Three and Nine Months Ended Dec. 31, 1992
 Three Months Ended
 Dec. 31, 1992 Dec. 31, 1991
 Revenue $15,843,000 $12,208,000
 Costs and expenses 14,761,000 11,514,000
 Income before income taxes 1,082,000 694,000
 Income tax expense 421,000 271,000
 Net income $661,000 $423,000
 Earnings per common and common
 equivalent share $.16 $.10
 Weighted average common and
 common equivalent shares 4,120,000 4,133,000
 Nine Months Ended
 Dec. 31, 1992 Dec. 31, 1991
 Revenue $44,464,000 $33,840,000
 Costs and expenses 41,542,000 31,950,000
 Income from operations 2,922,000 1,890,000
 Other:
 Net gain from sale of name 3,000,000 ---
 Managed care
 reconfiguration charge (3,000,000) ---
 Income before incomes taxes 2,922,000 1,890,000
 Income tax expense 1,143,000 750,000
 Net income $1,779,000 $1,140,000
 Earnings per common and
 common and equivalent share $.43 $.31
 Weighted average common and
 common equivalent shares 4,101,000 3,633,000
 The net gain of $3.0 million was generated from the sale of the company's former name, "FORTIS." The managed care charge of $3.0 million was to provide for a reconfiguration of its managed care services and related computer hardware and software.
 -0- 1/20/93
 /CONTACT: Gordon Clemons, president of CorVel, 714-851-1473/
 (CRVL)


CO: CorVel Corp. ST: California IN: HEA SU: ERN

JL-KJ -- LA029 -- 6980 01/20/93 14:34 EST
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Date:Jan 20, 1993
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