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RISCORP AND COMPSOURCE FINALIZE AGREEMENT TO COMBINE THEIR NORTH CAROLINA WORKERS' COMP OPERATIONS

GREENSBORO, N.C., March 7 /PRNewswire/ -- RISCORP, Inc. (Nasdaq: RISC), a leading managed care workers' compensation company, has finalized its agreement to acquire the operations of CompSource, which manages one of North Carolina's largest group self-insurance funds.

The agreement will create one of the largest workers' compensation operations in North Carolina. RISCORP currently manages The National Alliance for Risk Management (NARM) Group Self-Insurers Fund. NARM has approximately $47 million in premium and more than 2,200 members. CompSource managed the North Carolina Commerce Fund (NCCF). NCCF has approximately $38 million in premium and more than 785 members. The agreement calls for NARM and NCCF to remain as separate self-insurance funds for North Carolina employers.

Under the terms of the agreement, RISCORP purchased one hundred percent of CompSource stock for approximately $11.9 million in cash and RISCORP Class A Common Stock valued at approximately $2 million.

"This strategic acquisition will enhance our position as the leading provider and proponent of managed care workers' compensation in the North Carolina market," said Tony Malone, president and chief operating officer of RISCORP. "We offer North Carolina employers a unique approach that applies managed care principles to promote the right care, at the right cost, and focuses on return to work for injured employees."

The combined operations will function as RISCORP and will centralize operations in Charlotte on or about April 1, 1996. RISCORP also will maintain a satellite office in Greensboro. Bruce Flachs, former president of CompSource, was named general manager of RISCORP in North Carolina. All RISCORP employees currently in Greensboro were offered the opportunity to move with the company to Charlotte and approximately 17 have chosen to relocate, including Steve Ficarra, vice president of operations, and Tom Maupin, vice president of marketing.

RISCORP, Inc. is the market leader in managed care workers' compensation. Its proprietary system stresses prompt medical intervention and integrated medical management to control cost, ensure appropriate care, and speed return to work for injured employees. Its products and services are marketed to businesses, associations, and public entities in nine states through a network of independent agents.

The RISCORP group of companies offer an integrated approach to the full continuum of managed care, including managed care workers' compensation, property and casualty insurance, managed health care, and specialty managed care services to businesses, associations, and public entities of all sizes.
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/CONTACT: George Stolpe, ext. 5881 or Susan Russ, ext. 5840, 800-226-7472, both of RISCORP News Bureau/

(RISC)

CO: RISCORP, Inc. ST: Florida IN: INS SU:

KW-SS -- FLTH015 -- 1379 03/07/96 18:13 EST
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Publication:PR Newswire
Date:Mar 7, 1996
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