To: Patrick J. Saunders who wrote (161 ) 7/20/1999 6:21:00 AM From: Kip518 Respond to of 165
July 19, 1999 23:27 MedPartners Receives Bankruptcy Court Approval of Settlement Agreement, Sale of Southern California Assets Enables Company to Complete Exit from California Physician Services BIRMINGHAM, Ala., July 19 /PRNewswire/ -- MedPartners, Inc. (NYSE: MDM) announced today that it has received bankruptcy court approval of its definitive agreement with the State of California that provides for a comprehensive settlement regarding the Company's California physician practice management assets, including operations of MedPartners Provider Network, Inc. ("MPN"). The Company expects the agreement to become effective within two weeks. The Company also said that the bankruptcy court has approved the sale of virtually all of its remaining Southern California assets, including the sale of physician practice management assets related to Mullikin Medical Group and Southern California Medical Corporation (including the Friendly Hills clinics) to KPC Acquisition Corporation. The judge rebuffed a late attempt by MedManagement Acquisitions Corporation to overbid for the assets. The court also approved MedPartners' sale of assets related to Talbert Medical Group and MedPartners' hospice and home health operations. The only remaining asset sale in California yet to receive court approval relates to Riverside Medical Clinic ("RMC"). Definitive documents for the sale of RMC assets have already been signed, and the bankruptcy court is scheduled to consider approval of the RMC transaction on August 10, 1999. "We are pleased to have received court approval of the definitive agreement and the asset sales, and to bring to a close this period of uncertainty. MedPartners has resolved its issues with the State and can now complete its exit of the PPM business in a way that minimizes disruption to patients," said Mac Crawford, Chairman, President and CEO of MedPartners, Inc. "With the approval of the sale of these assets, MedPartners can quickly complete divestiture of the vast majority of its California physician practice management operations, and is well on its way to exiting that business as planned." Certain statements contained in this press release constitute forward-looking statements contemplated under the Private Securities Litigation Reform Act of 1995. As such, they involve risks and uncertainties. A discussion of a number of important factors and assumptions regarding these statements and risks involved is contained in the Company's most recent filings with the Securities and Exchange Commission and also in the Company's Quarterly report on Form 10-Q filed with the Securities and Exchange Commission on May 17, 1999. SOURCE MedPartners, Inc. /CONTACT: Tadd McVay of MedPartners, Inc., investors, 205-982-4265; or Joel Weiden of Gavin Anderson & Co., media, 212-373-0221/ /Web site: medpartners.com