FOR IMMEDIATE RELEASE	FOR MORE INFORMATION:
Wednesday, August 9, 2000	Diane Landry King (301) 838-5636

MAMSI ANNOUNCES EARNINGS:
Best Second Quarter in Five Years, Net Income up 62%

Rockville, Md. -- Mid Atlantic Medical Services, Inc. (MAMSI), (MME-NYSE), one of the mid-Atlantic region's largest managed care companies today reported earnings per share of $0.19 for the second quarter of 2000.

Diluted earnings per share for the second quarter of 2000 was $0.19 on 38,442,688 shares outstanding, compared with $0.11 on 41,933,811 shares outstanding for the same period in 1999.

Revenue for the second quarter of 2000 was $368.3 million, compared to $323.5 million for the same quarter in 1999, an increase of $44.8 million or 13.8%. Net income for the quarter was $7.3 million, compared with $4.5 million for the same period in 1999, an increase of $2.8 million or 62.2%. Medical and home health patient services expenses for the second quarter of 2000 were $313.2 million, compared with $279.0 million for the same period in 1999. Second quarter 2000 administrative expenses were $43.1 million, compared with $36.5 million for the same period in 1999.

"This is a solid second quarter for MAMSI," stated Mark D. Groban, M.D., MAMSI's Chairman of the Board. "Our focus on bottom line growth, disciplined pricing, careful administrative and medical cost management and excellent service to our customers is producing good results. We are well-positioned to sustain this trend of consistent earnings growth, margin expansion and increased shareholder value. We anticipate that 2000 will be our best year in a long time and are establishing an excellent foundation for 2001 and beyond."

Diluted earnings per share for the first six months of 2000 was $.41 on 38,790,491 shares outstanding, compared with $0.25 on 42,239,249 shares outstanding for the first half of 1999.

Revenue for the first six months of 2000 was $728.5 million, compared with $636.7 million for the same period in 1999, an increase of $91.8 million or 14.4%. Net income for the first half of 2000 was $15.9 million, compared with $10.4 million for the first half of 1999, an increase of $5.5 million or 52.9%. Medical and home health patient services costs for the six months ended June 30, 2000 were $616.8 million, compared with $545.4 million for the same period in 1999. Administrative expenses for the first half of 2000 were $85.6 million, compared with $73.3 million for the same period in 1999.

"We're successfully growing key elements of the Company," said Thomas P. Barbera, CEO and President. "Many of our new initiatives are contributing to our ongoing positive results. We will continue to focus on our physician and customer service infrastructure, as well as proceeding with the development of our practical, user-friendly Internet applications, such as the on-line eligibility program we added this quarter."

The Company's practitioner network numbered 40,399 physicians, specialists, and affiliates; 344 hospitals; and 21,288 pharmacies as of June 30, 2000.

Membership in MAMSI's subsidiaries totaled 1,806,200 covered lives as of June 30, 2000. Of the 2000 total, 1,036,400 are PPO members and 769,800 are HMO, indemnity and ASO members. Membership by product follows:

* Includes indemnity members.

MAMSI also announced:

• On August 8th its stock was added to Standard and Poor's (S&P's) SmallCap 600 Index, a benchmark index of 600 domestic small cap companies.
• Its two largest HMOs - MD-Individual Practice Association, Inc. (M.D. IPA) and Optimum Choice, Inc. ® (OCI) - were once again awarded three-year Commendable Accreditation from the National Committee for Quality Assurance (NCQA) for their commercial HMO/POS products.
• It received Certificates of Quality Assurance for its subsidiaries, MD-Individual Practice Association, Inc.; Optimum Choice, Inc.; and MAMSI Life and Health Insurance Company, from the Commonwealth of Virginia's Department of Health.
• It purchased 1,050,400 shares of MAMSI's common stock for approximately $10.9 million during the second quarter. During the month of July, the Company purchased an additional 265,600 shares. The Stock Purchase Program is planned to continue throughout the year.

MAMSI's subsidiaries operate in Maryland, Virginia, North Carolina, Pennsylvania, West Virginia, Delaware and Washington, D.C. Its website is located at www.mamsi.com.

Selected Income Statement Information
(In thousands except share amounts, unaudited)

Note 1: Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: All forward-looking information or statements contained in this release, including expectations regarding future or continued performance, are based on management's current knowledge of factors, all with inherent risks and uncertainties, affecting MAMSI's business. MAMSI's actual results may differ materially if these assumptions prove invalid. Significant risk factors, while not all-inclusive, are: the possibility of increasing price competition in the Company's marketplace; the possibility that the Company is not able to increase its market share at the anticipated premium rate; the possibility of increased litigation, legislation or regulation that might increase regulatory oversight which, in turn, would have the potential for increased costs; the possibility of increased medical expenses due to increased utilization, inflation or legislative mandates; and the possibility that the Company is not able to negotiate new or renewal contracts with appropriate physicians and health care practitioners. Investors should review other risks and uncertainties contained in Company documents filed with the Securities and Exchange Commission.
Note 2: MAMSI is a regional holding company for health care organizations that provides comprehensive health insurance products and services including: MD-Individual Practice Association, Inc. (M.D. IPA), a federally qualified HMO; Optimum Choice, Inc.® (OCI) , a non-federally qualified HMO; Optimum Choice of the Carolinas, Inc. (OCCI); Alliance PPO, LLC, a preferred provider organization; Mid Atlantic Psychiatric Services, Inc., a preferred provider organization offering managed psychiatric health care services; MAMSI Life and Health Insurance Company (MLH), a life and health insurance company; HomeCall, Inc. and FirstCall, Inc., home health care companies; and HomeCall Pharmaceutical Services, Inc., a pharmacy and home infusion services company.
Note 3: Mid Atlantic Medical Services, Inc. common stock is traded on the New York Stock Exchange (NYSE-MME).

MID ATLANTIC MEDICAL SERVICES, INC.
IN 000'S EXCEPT PMPM AND PER SHARE
(UNAUDITED)

MID ATLANTIC MEDICAL SERVICES, INC.
IN 000'S EXCEPT PMPM AND PER SHARE
(UNAUDITED)