MAMSI Partners with American Specialty Health Networks, Savings Offered for Complementary Health Care Services

Rockville, MD (August 18, 2000)-- Mid Atlantic Medical Services, Inc. (MAMSI) (NYSE:MME) and American Specialty Health Networks (ASHN) today announced a strategic alliance. Effective September 1, 2000, MAMSI Health Plan members and Alliance PPO, LLC participants may receive significant savings for non-covered complementary health care services provided by ASHN's network.

ASHN has a credentialed network of chiropractors, acupuncturists and massage therapists throughout the United States. Participating providers have agreed to accept a 25 percent reduction in their fees for services rendered to MAMSI Health Plan members and Alliance PPO participants.

Most of MAMSI's health insurance products provide some coverage for services rendered by chiropractors and acupuncturists. No health insurance product provides coverage for massage therapy. For services not covered under a MAMSI Health Plan, members may obtain services from an ASHN participating provider at the discounted rates.

"By adding this supplement to traditional health care coverage, MAMSI takes another step towards making our health plans even more value-added and consumer friendly," said Mark D. Groban, M.D., Chairman of MAMSI's Board.

Members/participants may locate a participating complementary health care provider by selecting the Healthyroads.com link on MAMSI's web site (www.mamsi.com), or by calling ASHN toll free at 877-327-2746. Under this program, members/participants make an appointment directly and pay the provider the discounted fee. No claim forms or additional paperwork is required.

MAMSI is one of the mid-Atlantic region's largest managed care companies. Its health plans and PPO network include MD-Individual Practice Association, Inc. (M.D. IPA); MAMSI Life and Health Insurance Company (MLH); Optimum Choice, Inc.® (OCI); Optimum Choice of the Carolinas, Inc. (OCCI) and Alliance PPO, LLC (Alliance). MAMSI's subsidiaries cover over 1.8 million lives.

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 Fs. Investors should review other risks and uncertainties contained in Company documents filed with the Securities and Exchange Commission.