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UNITED AMERICAN HEALTHCARE CORPORATION ANNOUNCES STRONG FIRST-QUARTER RESULTS

                 UNITED AMERICAN HEALTHCARE CORPORATION
                 ANNOUNCES STRONG FIRST-QUARTER RESULTS
    DETROIT, Nov. 18 /PRNewswire/ -- United American Healthcare Corporation (NASDAQ: UAHC) today announced a 30-percent increase in net income for the first quarter ended Sept. 30, 1991.  Per-share earnings were up 4 percent as weighted average shares outstanding increased 27 percent.
    Revenues for the quarter totaled $8,922,254, up 7 percent from $8,278,115 in the September, 1990 quarter.  Net earnings in the recent quarter were $1,199,972, or 24 cents a share, with 5,060,393 weighted average shares outstanding.  For the year-earlier period, the company posted net earnings of $898,000, or 23 cents a share, with 3,980,393 weighted average shares outstanding.
    The number of average shares outstanding has increased substantially in the current fiscal year since 1,080,000 new shares were issued at the time of the company's initial public offering on April 30, 1991.
    "Total revenues grew primarily due to higher management fees from the company-managed health maintenance organizations, OmniCare Health Plan and Personal Physician Care of Ohio, Inc.," said Julius V. Combs, M.D., chairman and chief executive officer.
    "Both HMOs are solidly profitable, growing, and in excellent shape financially.
    "OmniCare membership grew to 92,179 from year earlier 89,502. OmniCare's commercial enrollment declined by 2,600 due to the loss of one 5,000-member group.  We are continuing special emphasis on the growth of the commercial sector.  The Medicaid segment grew by more than 5,000 members, bringing total enrollment up 3 percent.  OmniCare's loss ratio was 80 percent in the recent quarter, vs. 75 percent in the year-earlier quarter.
    "Personal Physician Care has made remarkable progress since last year at this time.  Its equity position has been positive since June, 1991, and it has posted profits every month since January, 1991. Commercial enrollment has grown by 17 percent, while total enrollment was down by 10 percent, reflecting the loss of Medicaid enrollees who ceased to meet technical eligibility requirements," Dr. Combs said. "PPC's loss ratio has improved to 76 percent from 91 percent, a key factor in the HMO's return to profitability."
    "The continuation of CountyCare beyond Nov. 30 remains unknown at this time.  While this part of our business is important, it is not our most profitable segment.  We have previously said its termination would affect this year's earnings by 3 to 5 cents a share.  We pioneered this program.  Even if it does not continue, we are confident our experience will serve us well as we pursue similar programs for the general assistance population," Dr. Combs said.
    "United American's highly liquid balance sheet is available to support the company's growth.  The company has $14 million cash, or $2.76 a share, and a current ratio of 5.1.  Michigan National Bank has increased our credit line to $2.5 million from $1 million as our financial condition continues to strengthen.
    "We continue to actively market UAHC services and pursue opportunities to maximize our management expertise, as well as review potential acquisitions.  Looking forward, the company is on track for continued growth and profitability," he concluded.
    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.  Through CountyCare, a program of Wayne County, Mich., the company provides comprehensive health care services to approximately 14,000 general assistance recipients, a contract which is effective through Nov. 30, 1991.
                  UNITED AMERICAN HEALTHCARE CORPORATION
                    CONSOLIDATED STATEMENTS OF EARNINGS
                                 Unaudited
                                         Three Months Ended
                                        9/30/91      9/30/90
    Revenue
    Mgmt. Fees from related party      $5,621,943   $4,967,183
    Wayne County Capitation             3,110,185    3,214,639
    Interest & other income               190,126       96,293
                                        8,922,254    8,278,115   +7 pct
    Expenses
    Sal., fringe bene. & P/R taxes      2,364,602    2,140,450
    Promotion & advertising               419,034      636,601
    General & administrative            1,334,107    1,430,551
    Wayne County Medical Care           3,032,139    2,736,983
                                        7,149,882    6,944,585
    Earnings before Income Taxes        1,772,372    1,333,530  +33 pct
    Income Tax Expense                    572,400      435,170
                                       $1,199,972   $  898,360  +34 pct
    Net Earnings per Common Share      $     0.24   $     0.23   +4 pct
    Weighted Average
         Shares Outstanding             5,060,393     3,980,393
    MEDICAL Loss Ratios
    OmniCare Health Plan                   80 pct        75 pct
    Personal Physician Care                76 pct        91 pct
                             HMO Enrollment
                                  9/30/91        9/30/90
               OmniCare Health Plan
    Commercial                    47,198         49,746
    Medicaid                      44,981         39,756
    Total                         92,179         89,502
              Personal Physician Care
    Commercial                     9,113          7,740
    Medicaid                       8,270         11,567
    Total                         17,383         19,307
          TOTAL                  109,562        108,809
    -0-                      11/18/91
    /CONTACT:  Dr. Julius V. Combs, M.D., chairman, United American Healthcare Corporation, 313-873-2852; or Dixie Watterson, 708-564-5610, Bruce Marcus, 212-580-0703, Largent Parks, 214-387-4520, 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 -- DE007 -- 1319 11/18/91 10:22 EST
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No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1991 Gale, Cengage Learning. All rights reserved.

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Date:Nov 18, 1991
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