MAMSI Unveils New Logo and Announces Recipient of Spirit of Service Award

Frederick, Md. -- Mid Atlantic Medical Services, Inc. (MAMSI) (NYSE-MME), one of the largest managed care companies in the mid-Atlantic region, held a flag raising ceremony and awarded its first annual Spirit of Service Award on July 31st at the company's annual picnic in Frederick, Maryland.

In raising the American flag and the new company flag, Thomas P. Barbera, President and CEO, remarked "At MAMSI we have employees of every creed and color, employees whose ethnic heritage covers the seven seas and continents. In short, we are a quintessential American company. It is only fitting that we proudly fly the American flag as a symbol of liberty to all who pass by our doors."

The Spirit of Service Award was given to Cindy Wolf who has volunteered with the Cystic Fibrosis Foundation. "Cindy has given freely of her time and talent to improve the quality of life for those with cystic fibrosis" Mark Groban, M.D., Chairman of the Board said. "We want to encourage all our employees to work in whatever way they can to improve the lives of others. It is with great pleasure that MAMSI contributed $1,000 in her name to help further the work of the Cystic Fibrosis Foundation." The names of the recipients of the Spirit of Service Award are etched in a granite plaque located at the foot of the flag.

The company also unveiled its new logo, a symbol of the company's new direction.

Mid Atlantic Medical Services, Inc.'s health plan subsidiaries cover over 1.8 million lives in Maryland, Washington DC, Virginia, Pennsylvania, North Carolina, Delaware, and West Virginia. The company's Internet address is www.mamsi.com.

Note 1: Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: All forward-looking information or statements contained in this release 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 of state or Federal budget mandates that reduce premium levels; the possibility of increased medical expenses due to increased utilization, inflation or legislative mandates; and the possibility that the Company is not able to expand its Service Area as planned. 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 provide comprehensive health insurance products and services including: M.D. IPA, a traditional HMO, and M.D. IPA Preferred, an open-ended version of the HMO; Optimum Choice, Inc.®, a non-federally qualified HMO; Optimum Choice of the Carolinas, Inc. (OCCI); Optimum Choice, Inc. of Pennsylvania (OCIPA); Alliance PPO, LLC, a preferred provider organization; Mid Atlantic Psychiatric Services, Inc. (MAPSI), a preferred provider organization offering managed psychiatric health care services; MAMSI Life and Health Insurance Company, an indemnity insurance company; HomeCall, Inc. and FirstCall, Inc., home health care companies; and HomeCall Pharmaceutical Services, Inc., a mail order pharmacy and home infusion services company.

Note 3: Mid Atlantic Medical Services, Inc. securities are traded on the New York Stock Exchange (NYSE-MME).

FOR IMMEDIATE RELEASE	FOR MORE INFORMATION:
August 2, 1999	Diane Landry King (301) 838-5636