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OMEGA HEALTH SYSTEMS ANNOUNCES RESULTS

 MEMPHIS, Tenn., Nov. 8 /PRNewswire/ -- Omega Health Systems, Inc. (NASDAQ Small Cap: OHSI) the Memphis-based provider of comprehensive eye care services and managed eye care networks, today announced results for the third quarter ended Sept. 30, 1993. For the nine months ended Sept. 30, 1993, the company earned $109,000 or $.03 per share compared to a loss of $4,364,000 or $1.42 per share for the same period in 1992. For the three months ended Sept. 30, 1993, the company earned $45,000 or $.01 per share compared to a loss of $3,746,000 or $1.18 per share for the same period in 1992. The 1992 results include a charge of $3,034,000 for the write off of goodwill and other intangibles.
 During the third quarter, the company completed the exchange of 411,300 shares of its common stock for all of the limited partnership interests in nine limited partnerships for which company subsidiaries serve as general partner. With the completion of the exchange, all of the company's subsidiaries are wholly owned. The exchange had the effect of increasing the company's stockholders' equity by approximately $700,000.
 Other significant recent developments include:
 -- Omega and Eye Health Network, Inc., a Denver-based eye health and
 vision care provider organization, have signed a letter of intent
 to combine their organizations. Following the combination, EHN
 will operate as a subsidiary of Omega. The companies intend to
 complete the transaction by Dec. 31, 1993.
 -- Omega has entered into an agreement under which Surgical Care
 Affiliates, Inc. (SCA), the Nashville-based operator of
 ambulatory surgery centers, will become a preferred provider to
 Omega eye care networks. Omega will develop managed care
 networks that include SCA facilities. Eight states have been
 targeted for initial efforts under the agreement.
 -- SCA has agreed to purchase certain assets, including surgical
 equipment, of Omega's Nashville ambulatory surgery center. Omega
 will relocate its surgery activities to SCA's Nashville surgery
 center. Upon closing of the sale, which is anticipated in the
 fourth quarter, Omega would recognize a gain of approximately
 $400,000.
 Andrew W. Miller, chairman, commented, "We are pleased with the progress we have made to reposition the company to take advantage of managed care opportunities." Thomas P. Lewis, president and chief executive officer, added, "We are making significant progress in achieving our goal of developing a national eye care delivery system."
 With the completion of the EHN merger, Omega will have managed care contracts covering approximately 560,000 lives and provider networks in 18 states. Networks are under development in an additional 12 states with the goal of having a national network in place by mid-1994. Omega shares are traded on the NASDAQ Small Cap Market under the symbol "OHSI."
 OMEGA HEALTH SYSTEMS, INC.
 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 (Unaudited)
 Nine months ended Three months ended
 Sept. 30, Sept. 30,
 1993 1992 1993 1992
 (in thousands) (in thousands)
 Center net revenues $12,655 $12,778 $4,354 $4,353
 Management and other revenues 1,144 1,470 395 529
 Total revenues 13,799 14,248 4,749 4,882
 Center operating expenses 12,155 13,632 4,095 4,841
 Cost of sales 400 470 150 185
 Selling, general and
 administrative 1,154 1,255 430 569
 Write off of goodwill and other
 intangibles 0 3,034 0 3,034
 Earnings (loss) from operations 90 (4,143) 74 (3,747)
 Non-operating revenue (expense):
 Interest expense (244) (303) (69) (101)
 Interest and other income 62 123 12 44
 Gain on sale of centers 217 0 0 0
 Earnings (loss) before
 minority interest 125 (4,323) 17 (3,804)
 Minority interest (16) (41) 28 58
 109 (4,364) 45 (3,746)
 Income tax expense 0 0 0 0
 Net earnings (loss) $109 ($4,364) $45 ($3,746)
 Average number of shares
 outstanding 3,272,078 3,065,525 3,401,138 3,181,909
 Net earnings (loss) per
 common share $0.03 ($1.42) $0.01 ($1.18)
 CONDENSED CONSOLIDATED BALANCE SHEETS
 (Unaudited)
 Sept. 30,
 1993 1992
 (in thousands)
 Assets:
 Cash $711 $1,304
 Receivables 2,550 2,238
 Property and equipment 2,483 3,744
 Other assets 1,919 1,896
 Total assets $7,663 $9,182
 Liabilities and Stockholders' Equity:
 Accounts payable and accrued expenses 2,098 1,687
 Notes payable and long-term debt 3,075 4,601
 Total liabilities 5,173 6,288
 Minority interest 0 731
 Stockholders' equity 2,490 2,163
 Total liabilities and stockholders' equity $7,663 $9,182
 -0- 11/8/93 R
 /CONTACT: Thomas P. Lewis, president and chief executive officer, or Ronald L. Edmonds, senior vice president and chief financial officer, of Omega Health Systems, 901-683-7868/
 (OHSI)


CO: Omega Health Systems, Inc. ST: Tennessee IN: HEA SU: ERN

CM-MM -- CH002R -- 1813 11/08/93 13:21 EST
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Date:Nov 8, 1993
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