CorVel : IRVINE

Nature of Business: Provides medical cost containment and managed-care services. Total employees: 1,300 In Orange County: 50 Stock listing in The Times: On NASDAQ as “Corvel” Ticker Symbol: “CRVL” Friday’s Stock Close: $14.50 Change: Up $1.50 Analyst Review: “CorVel works within the health care system--with an insurance company to try and pare bills. They’ve got the software and the people-power and the computer systems to go through insurance company claims for worker’s compensation. What makes them different is that they are national and decentralized--management runs the show out of each branch. This is a management style that fits the times. CorVel is also a very software-focused company. And, the more you automate, the more you cut costs. CorVel charges by how much it can save the customer. Its balance sheet looks good. As of June, it had zero long-term debt. With about $9 million in working capital--it has a solid position. We have a ‘buy’ on the stock.” Rachael Scherer, analyst Dain Bosworth Inc., Minneapolis Sales and Profits Dollar amounts in millions

2 qtrs. 2 qtrs. 1990 1991 1992 1992 1993 Sales 20.3 28.9 46.9 21.6 28.6 Profit (.754) .685 1.6 .717 1.1

Corporate Outlook: “CorVel’s services are directed at managing health care experiences of injured workers, reducing medical costs and returning people to work. In 42 states, CorVel medical professionals use clinical information to integrate the activities of patients, providers and payers in this costly system. While there has not been an off quarter, the market drove the stock from $26 down to $9--mostly because people don’t know about the company. We’re projecting earnings of 60 cents this year.” --Gordon Clemons, president/CEO RETURN ON INVESTMENT: 3-YEAR SUMMARY AND YEAR-TO-DATE

Fiscal year ending Mar. 31 Mar. 31 Mar. 31 2 qtrs. 1990 1991 1992 1992 52-Week High N/A N/A $26.25 $19.25 52-Week Low N/A N/A $8.75 $8.75 Book Value Per Share $3.88 $5.12 $4.29 $4.45 Price Per Share N/A N/A $15.75 $16.25 Net Earnings (loss) Per Share ($0.89) ($0.12) $0.43 $0.21 Price-to-Earnings Ratio N/A N/A 37:1 37:1 Average Return on Investor Equity 11% 8% 10% 10%

Fiscal year ending 2 qtrs. 1993 52-Week High $17.25 52-Week Low $9.00 Book Value Per Share $4.34 Price Per Share $9.25 Net Earnings (loss) Per Share $0.27 Price-to-Earnings Ratio 17:1 Average Return on Investor Equity 12%

* CorVel sold 1.6 million shares in its initial public offering June 28, 1991; net proceeds: $14.3. For more information call or write, CorVel Corp.: 1920 Main Street., Suite 1090, Irvine, 92714. (714) 851-1473 Source: CorVel Corp. Researched by DALLAS M. JACKSON / Los Angeles Times