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UNITED AMERICAN HEALTHCARE CORPORATION: NET EARNINGS UP IN FISCAL 1992 ON LOWER REVENUE

 UNITED AMERICAN HEALTHCARE CORPORATION:
 NET EARNINGS UP IN FISCAL 1992 ON LOWER REVENUE
 DETROIT, Sept. 17 /PRNewswire/ -- United American Healthcare Corporation (NASDAQ: UAHC) today announced higher net earnings for the year ended June 30, 1992. This year's per-share amounts were impacted by an increased number of shares outstanding.
 Net earnings for the year rose 5 percent to $4,583,463, up from $4,348,810. Per-share earnings were impacted by the 21-percent increase in weighted average shares outstanding to 5,060,393 from 4,184,557. As a result, United American posted earnings per share of 91 cents vs. $1.04.
 The bulk of revenues for the year were derived from management fees that rose 8 percent to $24,299,144 from $22,472,159. This is the more profitable side of UAHC's business, it noted.
 Revenues for the year were $34,870,598 compared to $36,030,731. This is because County Care revenues, under the company's former agreement with Wayne County, showed a decline as the program was discontinued for lack of funding by the state legislature as of April 30, 1992. UAHC has consistently noted that the County Care Program was only marginally profitable.
 For the quarter ended June 30, 1992, net income was $923,936, or 18 cents a share. This compares to $1,278,856, or 27 cents a share in the year earlier quarter. There were 5,060,393 shares outstanding in this year's fourth quarter, or 5 percent more than the 4,799,294 in the prior year's fourth quarter.
 The bulk of the revenue in this year's fourth quarter came from management fees which rose 10 percent to $6,448,937 from $5,841,894. Fourth- quarter revenues in total were down to $7,625,779 compared to $9,218,979, again primarily because of discontinuation of the County Care Program. Wayne County capitation fees declined sharply to $857,612 from $3,270,864 reflecting payment for the month of April only as United American withdrew from the program in which funding was canceled at the end of April.
 The company said the 1992 fourth quarter included greatly increased expenses for advertising and promotion which were up by approximately $1 million to $1,231,596 compared to $219,589. A significant factor in this increase was stepped up promotion for Personal Physician Care in the Cleveland area. On an annual basis, promotion expenses were up by just $256,000, or 9 percent. This year's fourth-quarter promotion levels are more typical as the last quarter is a time when new advertising generally is introduced.
 The company also noted that management fees were up at an 8-percent annual rate, while salaries, fringe benefits and payroll taxes grew 10 percent. The company filled a number of vacant positions consistent with its more aggressive posture with respect to acquisitions, mergers and additional contracts. The company also granted cost of living raises and incentive pay adjustments totalling approximately 6.5 percent. General and administrative expenses declined slightly.
 "The past year was an active and good one. We made some adjustment to being public, improved results, moved along on our program of expanding our business for the future, and moved into a new headquarters. We also achieved some public appreciation of the uniqueness of UAHC as an HMO management company beginning to use its expertise to branch into other key market opportunities. A significant achievement this past year was our entry into the Third Party Administrator market," said Julius V. Combs, M.D., chairman. "It is our belief that this will be an area of major growth for United American. We expect to add value to these traditional TPA services by providing selected health care services to these agreements, as we have done with our initial work with the Bing Group of Detroit.
 "We are frequently asked about enrollment levels at our client companies. OmniCare's enrollment is up slightly over last year, which has been the case for other HMOs in the Detroit market as well. We believe that employers are holding the line with an eye toward the presidential election and what may happen with health care.
 "Looking forward, we are pleased to confirm an adjustment of the Medicaid fees to OmniCare for 1991. This means a fee of approximately $396,000 to United American will be recorded and reported in the first quarter to end September, 1992," Dr. Combs said.
 "In addition to increasing fees from the HMOs we manage, we expect additional growth to come from joint ventures, mergers, acquisitions and additional management agreements with other HMOs," Dr. Combs said. "We are continuing our due diligence regarding the CAM acquisition. With so much potential, we are excited about prospects for this current fiscal year."
 United American Healthcare Corp. is a health care management company. UAHC 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's strategy is to expand its expertise into avenues such as Third Party Administrator services as it has done with Detroit's Bing Group.
 HMO ENROLLMENT
 June 30,
 1992 1991
 OmniCare 93,761 92,037(a)
 Personal Physician Care 16,193 18,078
 Total 109,954 110,115
 (a) -- After adjustment or reconciliation of state numbers to actual experience.
 UNITED AMERICAN HEALTHCARE CORPORATION AND SUBSIDIARY
 CONSOLIDATED STATEMENTS OF EARNINGS
 Audited
 Year ended
 June 30,
 1992 1991
 Revenues
 Management fees from
 related parties $24,299,144 $22,472,159
 Wayne County capitation fees 9,605,601 13,113,757
 Interest and other 965,853 444,815
 Total revenues 34,870,598 36,030,731
 Expenses
 Salaries, fringe benefits
 and payroll taxes 10,034,659 9,094,434
 Promotion and advertising 3,066,173 2,810,224
 Depreciation and amortization 381,964 394,009
 General, administrative and
 other operating expenses 5,523,369 5,645,982
 Wayne County medical expenses 9,179,970 11,481,272
 Total expenses 28,186,135 29,425,921
 Earnings before income
 tax expense 6,684,463 6,604,810
 Income tax expense 2,101,000 2,256,000
 Net earnings $4,583,463 $4,348,810
 Net earnings per common
 share $ .91 $ 1.04
 Shares Outstanding 5,060,393 4,184,557
 UNITED AMERICAN HEALTHCARE CORPORATION AND SUBSIDIARY
 CONSOLIDATED STATEMENTS OF EARNINGS
 Unaudited
 Three Months ended
 June 30,
 1992 1991
 Revenues
 Management fees from
 related parties $ 6,448,937 $ 5,841,894
 Wayne County capitation fees 857,612 3,270,864
 Interest and other 319,230 106,221
 Total revenues 7,625,779 9,218,979
 Expenses
 Salaries, fringe benefits
 and payroll taxes 2,711,467 2,428,715
 Promotion and advertising 1,231,596 219,589
 Depreciation and amortization 112,561 89,640
 General, administrative and
 other operating expenses 1,580,999 1,235,827
 Wayne County medical expenses 751,963 3,210,352
 Total expenses 6,388,586 7,184,123
 Earnings before income
 tax expense 1,237,193 2,034,856
 Income tax expense (credit)
 Current 270,257 806,000
 Deferred 43,000 (50,000)
 313,257 756,000
 Net earnings $ 923,936 $1,278,856
 Net earnings per common
 share $ .18 $ .27
 Shares Outstanding 5,060,393 4,799,294
 -0- 9/17/92
 /CONTACT: Dr. Julius V. Combs, M.D., chairman and CEO, United American Healthcare Corporation, 313-874-2852; or Dixie Watterson, 708-564-5610, Bruce Marcus, 212-580-0703, Earle Brown, 813-796-1452, or Tim King, 213-541-4415, all of The Investor Relations Company, for United American Healthcare Corporation/
 (UAHC) CO: United American Healthcare Corporation ST: Michigan IN: HEA SU: ERN


JG -- DE022 -- 0773 09/17/92 15:21 EDT
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