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PACIFICARE HEALTH SYSTEMS ANNOUNCES SECOND QUARTER RESULTS

 CYPRESS, Calif., April 28 /PRNewswire/ -- PacifiCare Health Systems Inc. (NASDAQ: PHSYA, PHSYB) announced today that operating revenue for the second quarter ended March 31, 1993, increased 31 percent to $555,125,000, compared to $424,566,000 for the same quarter last year. Net income for the quarter was $15,176,000, or $0.54 per share, compared to $10,193,000, or $0.42 per share a year ago. The March quarter results include the write-off of net intangible assets totaling $844,000, or $0.03 per share. Total membership grew 14 percent to 1,040,157 at March 31, 1993.
 "The second quarter results are highlighted by solid growth in membership and operating revenue," said Alan Hoops, president and chief executive officer. "When compared to the prior year, commercial membership was up 8 percent, and our Secure Horizons Medicare membership grew 37 percent with all states reporting healthy gains.
 "Higher operating revenue resulted in a 1.6 percentage point decrease in our marketing, general and administrative expense ratio. Total health care service expenses were higher due to increased hospital, outpatient and out-of-area emergency costs in our commercial programs offset by higher premium revenue in our Medicare programs.
 "PacifiCare Health Systems is continuing to broaden its managed care capabilities. Our Houston plan is now fully operational, and we have begun to enroll both commercial and Medicare members. Our pharmacy management company, Prescription Solutions, is rapidly building a sizeable client base. In addition, we recently announced our entrance into the small employer group market in California.
 "We remain convinced that a health care system based on managed competition is the best way to provide quality, cost-effective health care," Hoops continued. "We are eagerly awaiting the Clinton Administration's plan for health care reform and expect that managed competition will provide the foundation for that new plan."
 For the first six months of fiscal 1993, operating revenue was $1,039,882,000, an increase of 33 percent over the same period last year. Net income for the same six-month period was $25,877,000, or $0.93 per share, compared to $16,825,000, or $0.71 per share a year earlier.
 PacifiCare Health Systems Inc. is one of the nation's leading managed health care organizations. Primary operations include HMOs for employer groups and Medicare beneficiaries in California, Oklahoma, Oregon, Texas and Washington with more than 1 million members. Other specialty managed care operations include a health and life insurance company, a behavioral health managed care organization, a utilization review services firm and a health promotion company.
 PACIFICARE HEALTH SYSTEMS INC.
 Financial Summary
 (Unaudited)
 Three months ended
 Income Statement March 31,
 (in thousands except per share data) 1993 1992
 Premiums $550,094 $421,882
 Other income 5,031 2,684
 Total operating revenue 555,125 424,566
 Health care services:
 Medical services 215,458 166,592
 Hospital services 194,963 143,107
 Other services 55,879 41,878
 Total health care services 466,300 351,577
 Marketing, general & admin expenses 66,127 57,190
 Amortization of intangibles 1,484 668
 Operating income 21,214 15,131
 Interest income 5,799 4,079
 Interest and other expense (461) (1,596)
 Income before income taxes 26,552 17,614
 Provision for income taxes 11,376 7,421
 Net income $15,176 $10,193
 Weighted avg number of shares outstanding 28,042 24,153
 Earnings per share $0.54 $0.42
 Operating Statistics
 Medical loss ratio (health care services
 as a percentage of premium revenue):
 Consolidated 84.8 pct 83.3 pct
 Commercial 82.9 pct 79.2 pct
 Secure Horizons Medicare 86.5 pct 88.5 pct
 Marketing, general & admin expenses
 as a percentage of operating revenue 11.9 pct 13.5 pct
 Operating income as a percentage of
 operating revenue 3.8 pct 3.6 pct
 Six months ended
 Income Statement March 31,
 (in thousands except per share data) 1993 1992
 Premiums $1,029,974 $779,197
 Other income 9,908 5,448
 Total operating revenue 1,039,882 784,645
 Health care services:
 Medical services 405,289 309,194
 Hospital services 366,991 268,017
 Other services 101,953 76,084
 Total health care services 874,233 653,295
 Marketing, general & admin expenses 128,310 107,984
 Amortization of intangibles 2,123 962
 Operating income 35,216 22,404
 Interest income 10,442 8,506
 Interest and other expense (933) (1,901)
 Income before income taxes 44,725 29,009
 Provision for income taxes 18,848 12,184
 Net income $25,877 $16,825
 Weighted avg number of shares outstanding 27,769 23,821
 Earnings per share $0.93 $0.71
 Operating Statistics
 Medical loss ratio (health care services
 as a percentage of premium revenue):
 Consolidated 84.9 pct 83.8 pct
 Commercial 82.9 pct 80.5 pct
 Secure Horizons Medicare 86.9 pct 87.7 pct
 Marketing, general & admin expenses
 as a percentage of operating revenue 12.3 pct 13.8 pct
 Operating income as a percentage of
 operating revenue 3.4 pct 2.9 pct
 At March 31, 1993
 Secure
 Membership Data Comm'l Horizons Total
 PacifiCare of California 563,295 200,434 763,729
 PacifiCare of Oklahoma 107,461 7,582 115,043
 PacifiCare of Oregon 63,910 25,911 89,821
 PacifiCare of Texas 53,831 17,733 71,564
 Total membership 788,497 251,660 1,040,157
 At March 31, 1992
 Secure
 Membership Data Comm'l Horizons Total
 PacifiCare of California 531,395 145,027 676,422
 PacifiCare of Oklahoma 98,761 4,731 103,492
 PacifiCare of Oregon 55,388 22,573 77,961
 PacifiCare of Texas 42,058 11,917 53,975
 Total membership 727,602 184,248 911,850
 At At
 March 31, Sept. 30,
 Balance Sheet Data (000s) 1993 1992
 Cash & equiv. and marketable securities $415,600 $272,135
 Medical claims and benefits payable $273,000 $208,000
 Total assets $648,522 $498,082
 Long-term debt $18,621 $18,488
 Total shareholders' equity $284,306 $198,884
 -0- 4/28/93
 /CONTACT: David K. Erickson (investor relations), 714-229-2636, or Debby Iacunato (media relations), 714-220-3745, both for PacifiCare/
 (PHSYA PHSYB)


CO: PacifiCare Health Systems Inc. ST: California IN: HEA SU: ERN

LS-JL -- LA005 -- 1741 04/28/93 07:46 EDT
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