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Phyhealth Provides Update to Shareholders
Date:1/30/2009

COA application with the regulators at an opportune time. Our entry into the individual and small group markets will be deferred into late 2009 or early 2010. We also plan to re-file our application with CMS for Medicare certification. However, significant changes are expected in the Medicare Advantage and Prescription Drug programs, which are likely to affect our entry into the Medicare market.

The country is undergoing unprecedented change that is impacting the full spectrum of our economy and of our society. Phyhealth is prepared to respond to these changes, and we are well positioned to take advantage of these opportunities in the months and years ahead. We look forward to keeping our shareholders apprised of any developments and remain focused on maximizing value for our shareholders.

Sincerely,

Robert L. Trinka

Chairman & CEO

About Physicians Healthcare Management Group, Inc.

Physicians Healthcare Management Group, Inc. (Phyhealth) is a developer of community-based health maintenance organizations (HMOs) that are owned and operated in partnership with the participating physicians. Phyhealth Plans are designed to deliver high-quality affordable healthcare by enabling physicians to assume end-to-end management of healthcare for their patients. The Phyhealth model empowers physicians to provide preventive healthcare and proactively manage their patient's general health by aligning incentives amongst the HMO, physician and the patient. Phyhealth intends to offer additional value-added products and services in cooperation with physicians, including medical malpractice insurance, local care facilities and wellness programs, as well as information technologies such as secure electronic medical records.

Forward-Looking Statements

This press release contains statements, which may constitute "forward-l
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SOURCE Physicians Healthcare Management Group, Inc.
Copyright©2009 PR Newswire.
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