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UNITED AMERICAN HEALTHCARE CORP. ANNOUNCES THIRD QUARTER RESULTS

 DETROIT, May 10 /PRNewswire/ -- United American Healthcare Corporation (NYSE: UAH) today announced results for the third quarter and nine months ended March 31, 1993.
 Management fees rose 10 percent in the quarter to $6,679,015 from $6,059,558. Total revenues advanced 12 percent to $7,066,965 from $6,290,286. This year's third quarter revenues included $175,496 from a product development fee for OmniCare Health Plan.
 Net earnings in the quarter just ended were $801,286, or 13 cents a share, compared to $1,372,866, or 22 cents a share. The prior year's third quarter included pre tax income of $401,139 from UAH's CountyCare program which was discontinued for lack of funding from the Michigan State Legislature.
 For the nine months, management fees rose 16 percent to $20,054,653 from $17,238,109. Total revenues advanced 13 percent to $20,857,404 from $18,496,830. Product development fees accounted for $225,496 of revenues in this year's nine months and $612,098 in the year earlier period.
 Net earnings were $3,182,071, or 50 cents a share, compared to $3,659,526, or 58 cents a share. The prior year's nine months included pre tax income of $319,982 from UAH's CountyCare program which has been discontinued.
 Per share amounts have been adjusted for a five for four stock split effective March 25, 1993. There were 6,325,460 split-adjusted shares outstanding in all reporting periods.
 The company identified increased promotion and advertising expenses as the most significant factor impacting net income.
 "This increase in expenditures, for new business development, focuses primarily on two large opportunities: the City of Cleveland employees group comprising approximately 12,000 lives, and a major ethnic group in Michigan comprising approximately 8,000 lives that required multilingual brochures, advertisements, and TV programs," said Julius V. Combs, M.D., chairman.
 "The product development fee in the third quarter was for a dental health maintenance program and point of service program which are now being offered by OmniCare," said Dr. Combs.
 "The fourth quarter appears to be positive based upon increased enrollment in the HMOs and increased Medicaid reimbursement rates in Michigan," added Dr. Combs. "OmniCare enrollment appears to be on an upward trend, and Medicaid reimbursement rates are expected to increase.
 "We are steering this company with a long term perspective. We want to note that new business initiatives announced since Jan. 1 are progressing in line with our expectations. As the country moves toward a more clearly defined health care policy, we are confident that United American will continue to be a significant participant."
 United American Healthcare Corporation is a healthcare management company. UAH provides a full range of services to two health maintenance organizations -- Omnicare Health Plan in Southeast Michigan and Personal Physician Care of Ohio, based in Cleveland. The company has recently announced health management initiatives located in New York City and Washington, D.C., both in partnership with entities based in those cities.
 United American Healthcare Corporation and Subsidiary
 CONSOLIDATED STATEMENTS OF EARNINGS
 Three months ended
 March 31,
 1993 1992
 (Unaudited)
 Revenues
 Management fees $ 6,679,015 $ 6,059,558
 Product development fee 175,496 ---
 Interest and other 212,454 230,728
 Total revenues 7,066,965 6,290,286
 Expenses
 Salaries, fringe benefits
 and payroll taxes 2,825,965 2,481,883
 Promotion and advertising 1,411,627 690,274
 Depreciation and amortization 159,077 65,429
 General, administrative and
 other operating expenses 1,491,010 1,365,913
 Total expenses 5,887,679 4,603,499
 Other
 Wayne County Capitation fees --- 2,722,897
 Wayne County medical expenses --- 2,321,758
 Income from CountyCare Program --- 401,139
 Earnings before income tax expense 1,179,286 2,087,926
 Income tax expense 378,000 715,060
 Net earnings $ 801,286 $ 1,372,866
 Net earnings per common share $ 0.13 $ 0.22
 Shares outstanding 6,325,460 6,325,460
 Nine Months ended
 March 31,
 1993 1992
 (Unaudited)
 Revenues
 Management fees $20,054,653 $17,238,109
 Product development fee 225,496 612,098
 Interest and other 577,255 646,623
 Total revenues 20,857,404 18,496,830
 Expenses
 Salaries, fringe benefits
 and payroll taxes 8,225,753 7,256,801
 Promotion and advertising 2,890,527 1,834,577
 Depreciation and amortization 431,269 269,403
 General, administrative and
 other operating expenses 4,575,784 4,008,762
 Total expenses 16,123,333 13,369,543
 Other
 Wayne County capitation fee --- 8,747,989
 Wayne County medical expenses --- 8,428,007
 Income from CountyCare
 Program --- 319,982
 Earnings before income tax expense 4,734,071 5,447,269
 Income tax expense 1,552,000 1,787,743
 Net earnings $ 3,182,071 $ 3,659,526
 Net earnings per common share $ 0.50 $ 0.58
 Shares Outstanding 6,325,460 6,325,460
 KEY HMO RATIOS
 MANAGED CARE ENROLLMENT March 31,
 1993 1992
 OmniCare Health Plan 95,943 95,276
 Personal Physician Care 22,376 16,476
 Totals 118,319 111,752
 MEDICAL LOSS RATIOS Three months ended March 31,
 1993 1992
 (unaudited) (unaudited)
 OmniCare Health Plan 84 percent 77 percent
 Personal Physician Care 76 percent 80 percent
 -0- 5/10/93
 /CONTACT: Dr. Julius V. Combs, M.D., Chairman and CEO, or Ronald R. Dobbins, President, United American Healthcare Corporation, 313-393-0200; or Dixie Watterson, 708-564-5610, Mark Perlgut, 212-580-4141, Earle Brown, 813-796-1452, all of The Investor Relations Company; or Joyce Davis-Adams of JDA Enterprises, 313-961-7835, all for United American Healthcare Corporation/
 (UAH)


CO: United American Healthcare Corporation ST: Michigan IN: HEA SU: ERN

ML-DH -- DE005 -- 6342 05/10/93 09:20 EDT
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Date:May 10, 1993
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