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SHAREHOLDER LAWSUIT INITIATED AGAINST CARENETWORK

 SHAREHOLDER LAWSUIT INITIATED AGAINST CARENETWORK
 MILWAUKEE, May 28 /PRNewswire/ -- CareNetwork, Inc. (NASDAQ: CRNT)


announced that the company learned on May 27, 1992 of the initiation of a shareholder lawsuit by David and Chaile Steinberg. The Steinbergs are residents of Pennsylvania who bought 300 shares of CareNetwork in the initial public offering last year.
 In their federal court action, they seek to represent a class of all shareholders who bought CareNetwork stock from March 26, 1991 to April 9, 1992. Their complaint alleges that the company misrepresented its ability to control and predict health care expenses in the prospectus for the initial public offering and subsequently. They also allege that the company failed to adequately reserve for hospital claims.
 Named as defendants are its president and chief executive officer, Kipton Kaplan, its executive vice president and chief operating officer, Craig Kasten, and a number of its directors. Dillon, Read & Co. Inc. and Robert W. Baird & Co. Inc., co-underwriters of the company's initial public offering, are also named as defendants.
 The company vigorously believes the suit is groundless and intends to defend it vigorously. All questions regarding the lawsuit should be made through the company's contacts at Quarles & Brady.
 CareNetwork, Inc. is a Milwaukee-based managed care services holding company of Wisconsin Health Organization Insurance Corp.; Network EPO, Inc.; Geneva Benefits Administration, Corp.; and CNI Medical Management Corp.
 -0- 5/28/92
 /CONTACT: Craig R. Kasten, 414-223-7712, Patrick A. Roberts, 414- 223-7752, and Walter R. Barry, 414-223-0172, all of CareNetwork; Alyce Katayama, 414-277-5816, or Joseph Masterson, 414-277-5169, both of Quarles & Brady, for CareNetwork/
 (CRNT) CO: CareNetwork ST: Wisconsin IN: MTC SU:


MA -- MN019 -- 4991 05/28/92 18:05 EDT
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Publication:PR Newswire
Date:May 28, 1992
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