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QUALMED NOTIFIED OF CHAMPUS CRI AWARD

 PUEBLO, Colo., July 28 /PRNewswire/ -- QualMed Inc. (NYSE: MQ), a managed health care company based here, has been informed by the U.S. Department of Defense (DoD) that the CHAMPUS Reform Initiative (CRI) contract for the DoD's Civilian Health and Medical Program of the Uniformed Services (CHAMPUS) in California and Hawaii has been awarded to another bidder, even though it appears that QualMed's price proposal was substantially lower than the winning proposal announced by DoD.
 QualMed has requested a debriefing with the DoD to discuss the CRI contract award.
 As previously announced, QualMed will expense costs for the unsuccessful CRI proposal as development and acquisition-related costs. QualMed previously reported that, as of March 31, 1993, approximately $1.2 million (net of a valuation allowance) has been capitalized by the company in connection with its proposal for the CRI California/Hawaii contract. Costs incurred through June 30, 1993 for the proposal in the amount of approximately $2.3 million on a pre-tax basis (net of a valuation allowance) will be expensed as development and acquisition- related costs in the quarter ended June 30, 1993. On an after-tax basis, these costs are expected to be approximately $1.4 million (approximately eight cents per share).
 QualMed is also currently a contender for DoD's CRI contract in Washington and Oregon. A "best and final offer" is expected to be submitted in the next few months.
 As of May 1993, QualMed Inc. provided comprehensive managed health care products and services to approximately 335,000 commercial health maintenance organization and Medicare Risk members in California, Colorado, Idaho, New Mexico, Oregon and Washington. Through its subsidiary, Preferred Health Network Inc., the company also provides access to preferred provider networks in 16 states for more than 2.3 million covered persons.
 -0- 07/28/93
 /CONTACT: Curt Westen of QualMed, 719-542-0500/
 (MQ)


CO: QualMed Inc. ST: Colorado IN: MTC SU:

EH -- LA062 -- 7040 07/28/93 21:10 EDT
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Publication:PR Newswire
Date:Jul 28, 1993
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