Safeguard : ANAHEIM

Nature of Business: Operates managed dental care plans Total employees: 400 In Orange County: 185 Stock listing in The Times: On NASDAQ as “SafHlt” Ticker Symbol: “SFGD” Friday’s Stock Close: $7.63 One-week change: None Analyst Review: “I think Safeguard is a very attractive stock. Management has proven its ability to run a profitable HMO in a difficult market. A lot of Safeguard’s business has been in large manufacturing companies--specifically aerospace and defense. As a result, revenue has been flat for the past two years, so its profitability is impressive in light of the fact that there have been a number of layoffs within its customer base. But I would expect revenue to begin improving because of new products it is adding. I am looking for Safeguard to earn roughly 85 cents a share this calendar year on $62 million in revenue. I think they can approach $1 next year in earnings on close to $70 million. Its balance sheet is extremely clean; there is essentially no debt, and its cash level is around $15 million. I have a buy on the stock.” --Richard H. Osgood, analyst Pacific Growth Equities, San Francisco Revenue Dollar amounts in millions

Revenue 2 Quarters 1989 1990 1991 1991 1992 $61.7 $60.1 $60.8 $30.0 $30.6

Profits Dollar amounts in millions

Profits 2 Quarters 1989 1990 1991 1991 1992 $3.1 $1.4 $2.6 $1.0 $1.9

Corporate Outlook: “Since 1974 Safeguard has been a leader in the prepaid dental plan industry and is now California’s largest prepaid dental plan. The company provides quality dental and vision care benefits to employee groups of all sizes. With the recent acquisition of SafeHealth Life Insurance Co. Safeguard now offers dual choice (indemnity and prepaid) dental and vision care products to new and existing clients.” --Ronald I. Brendzel chief financial officer RETURN ON INVESTMENT: 3-YEAR SUMMARY AND YEAR-TO-DATE

Fiscal year ending Dec. 31 Dec. 31 Dec. 31 2 Qtrs. 1989 1990 1991 1991 52-Week High $12.50 $8.75 $8.88 $7.25 52-Week Low $4.75 $4.00 $4.13 $4.13 Book Value Per Share $3.06 $3.47 $3.85 $3.81 Price Per Share $8.88 $4.75 $8.25 $5.81 Net Earnings Per Share $0.65 $0.31 $0.56 $0.23 Price-to-Earnings Ratio 14:1 15:1 15:1 13:1 Avg. Return on Investor Equity 21% 9% 14% 12%

Fiscal year ending 2 Qtrs. 1992 52-Week High $13.75 52-Week Low $8.25 Book Value Per Share $4.62 Price Per Share $9.88 Net Earnings Per Share $0.41 Price-to-Earnings Ratio 12:1 Avg. Return on Investor Equity 18%

For more information call or write, Safeguard Health Enterprises Inc.: P.O. Box 3210 Anaheim, Calif. 92803-3210 (714) 778-1284 Source: Safeguard Health Enterprises Inc. Researched by DALLAS M. JACKSON/Los Angeles Times