FOR IMMEDIATE RELEASE	FOR MORE INFORMATION:
Wednesday, November 8, 2000	Elizabeth Sammis 301-838-5638

MAMSI Announces Third Quarter Earnings: Net Income up 54%

Rockville, Md. -- Mid Atlantic Medical Services, Inc. (MAMSI) (MME-NYSE), one of the mid-Atlantic region’s largest managed care companies, today reported diluted earnings per share of $0.28 for the third quarter of 2000. "MAMSI’s strong third quarter affirms that we are moving in the right direction with our focus on disciplined pricing, diversified products offering access to a large physician network and excellent service to members and health care practitioners," remarked Mark D. Groban, M.D., Chairman of the Board. "The Company is well positioned to maintain its earnings and membership growth." The Selected Income Statement Information below summarizes the Company’s third quarter performance.

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

Net income increased 54% over the third quarter of 1999 while diluted earnings per share increased 65% due to the effect of the Company’s share repurchase program. The third quarter of 2000 included favorable one-time tax adjustments amounting to $1,300,000 or $0.03 per diluted share. Net income per diluted share excluding these adjustments was $0.25.

Commercial health premiums for the third quarter of 2000 were up 10.2% on a per member per month basis over the third quarter of 1999 and totaled $353,090,000. Commercial medical expenses incurred in the third quarter of 2000 were up 8.8% on a per member per month bases over the third quarter of 1999 and totaled $306,221,000. The medical care ratio for the third quarter of 2000 was 86.7%, a 120 basis point improvement over the commercial medical care ratio for the third quarter of 1999. Administrative expenses totaled $44,178,000 in the third quarter of 2000 and were 11.9% of revenue. This compares with 11.2% of revenue for the third quarter of 1999.

For the nine months ended September 30, 2000, net income increased 54% over the nine months ended September 30, 1999 and diluted earnings per share increased 64%. Commercial health premiums were up 10%

for the nine months ended September 30, 2000 on a per member per month basis over the same period in 1999 and totaled $1,039,324,000. For the nine months ended September 30, 2000, commercial medical expenses were up 8.5% on a per member per month basis over the same period in 1999 and totaled $904,060,000. The medical care ratio for the nine months ended September 30, 2000 was 87.0% compared with 88.2% of the same period in 1999, a 120 basis point improvement. Administrative expenses were 11.8% of revenue for the first nine months of 2000 compared with 11.4% of revenue for the comparable period in 1999.

Commercial membership in MAMSI’s subsidiaries continued to grow. As of September 30, 2000, membership in all MAMSI’s subsidiaries was 1,791,300 covered lives. Membership by product is as follows:

* Includes indemnity members

MAMSI also announced:

• The Board of Directors has authorized an additional $10,389,000 for the share repurchase program. This brings the total amount currently authorized for the share repurchase program to $20 million total.
• Since October 1, 2000, the Company has repurchased 132,300 shares of its common stock, bringing the total shares repurchased year to date to 2,569,800.
• Optimum Choice of the Carolinas, Inc. (OCCI) is now marketing an open access HMO product to employers in North Carolina.
• The Company’s third quarter conference call will be broadcast on its Web site. Interested persons may listen to the conference call on November 9, 2000 at 11 a.m. on www.mamsi.com. Those without access to the Internet may listen to the conference call by phone at 1-703-871-3627. Interested persons may listen to the conference call at a later time by calling the replay number 1-703-925-2533, passcode 4670802.

"We are pleased with our third quarter earnings and will continue to improve our market position," said Thomas P. Barbera, President and CEO. "We are developing our technology applications and improving our mix of product offerings to capitalize on our business advantages in the Mid-Atlantic region."

MAMSI’s subsidiaries operate in Maryland, Virginia, North Carolina, Pennsylvania, West Virginia, Delaware and Washington, D.C.

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: three health maintenance organizations, MD-Individual Practice Association, Inc. (M.D. IPA), Optimum Choice, Inc.® (OCI) and Optimum Choice of the Carolinas, Inc. (OCCI); two preferred provider organizations, Alliance PPO, LLC, and Mid Atlantic Psychiatric Services, Inc.; a life and health insurance company, MAMSI Life and Health Insurance Company (MLH); and home care companies such as HomeCall, Inc., FirstCall, Inc., and HomeCall Pharmaceutical Services, Inc.

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)