Phyhealth Issues June 30, 2009 Financial Statements and Provides Business Update

MIAMI, Oct. 14 /PRNewswire-FirstCall/ -- Physicians Healthcare Management Group, Inc. (Phyhealth) (Pink Sheets: PHYH), a developer of health maintenance organizations (HMOs) in partnership with physicians and manager of Physhield Insurance Exchange (Physhield), a licensed medical malpractice insurer, today announced that it has issued its financial statements for the six months ended June 30, 2009. The financials are being posted today on the Pink Sheets (www.pinksheets.com).

Mr. Robert Trinka, chairman and chief executive officer, stated, "We are extremely pleased with the progress we have made year-to-date. In particular, we are gearing up our medical malpractice insurance affiliate, Physhield Insurance Exchange, a Risk Retention Group, following our decision earlier this year to increase our ownership in Phyhealth Underwriters, Inc. from 50% to 92.5%. Phyhealth Underwriters is the attorney-in-fact and has a long-term agreement to manage the operations of Physhield. Phyhealth Underwriters derives its revenue as a percentage of the medical malpractice premiums written by Physhield."

"Most recently, we engaged sales agents to offer the Physhield product to physicians in Florida, after which we plan to aggressively expand our efforts along the east coast, and eventually across the US. Our goal for Physhield is to bring power and control back to physicians by enabling them to better manage their medical malpractice insurance program and ultimately make decisions in the best interests of their patients and themselves."

"At the end of the second quarter, we had approximately $1 million in cash and certificates of deposit, $3.4 million of assets, and no long-term debt. We believe our strong balance sheet provides us a solid foundation for growth, and we anticipate Physhield will begin to generate meaningful revenues by the first quarter of 2010. At the same time, we remain committed to developing health maintenance organizations in partnership with physicians. We are watchful of opportunities that may arise from the current administration's plans for changes in the healthcare insurance marketplace and expect our community health plan model will continue to play an important role in the healthcare arena regardless of the reforms that are finally enacted."

The company also reported that it is moving forward with its plans to file an S-1 registration with the SEC and a Form 211 with FINRA to make Phyhealth a fully reporting Company traded on the OTC Bulletin Board.

About Physicians Healthcare Management Group, Inc.

Physicians Healthcare Management Group, Inc. (Phyhealth) is a developer of community-based health maintenance organizations (HMOs) that are owned and operated in partnership with the participating physicians. Phyhealth Plans are designed to deliver high-quality affordable healthcare by enabling physicians to assume end-to-end management of healthcare for their patients. The Phyhealth model empowers physicians to provide preventive healthcare and proactively manage their patient's general health by aligning incentives amongst the HMO, physician and the patient. Phyhealth intends to offer additional value-added products and services in cooperation with physicians, including medical malpractice insurance, local care facilities and wellness programs, as well as information technologies such as secure electronic medical records.

Forward-Looking Statements

This press release contains statements, which may constitute "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Those statements include statements regarding the intent, belief or current expectations of Physicians Healthcare Management Group, Inc, and members of its management as well as the assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. The Company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results. Additional information is available at: http://www.phyhealth.com.

SOURCE Physicians Healthcare Management Group, Inc.