Physhield is structured as a reciprocal insurer and is owned by its insured physician subscribers. Phyhealth's subsidiary, Phyhealth Underwriters, Inc., serves as the Attorney-in-Fact for Physhield and is contracted to perform Physhield's insurance management, underwriting, claims and administration functions. Physhield will underwrite medical malpractice insurance for physicians of all specialties who are currently practicing within a managed care organization and/or are forming a community-focused Phyhealth Plan, Phyhealth's innovative health plan model designed for the 21st century.

Phyhealth's CEO, Robert Trinka, stated, "Physhield is a critical component of our overall strategy to bring physician managed healthcare to select communities nationwide. With Physhield we provide a unique medical malpractice insurance solution for our Plan physicians. We believe that by combining medical malpractice risk management with our brand of preventive and coordinated care, we give physicians a better opportunity both to deliver higher quality care and to reduce medical injuries. This not only serves to improve the health of patients and communities, but also works to bring today's rapidly rising health care costs under control while providing participating physicians with economic incentive and the ability to build equity in their practices through proper patient care."

Phyhealth Plans are designed for physicians to provide better care for those patients who control their choice of their personal physician and their insurance plan. This includes Medicare Beneficiaries, individuals and small businessmen, who are an important, but often underserved, segment of Florida's patient population. With Florida's more than 3 million Medicare Beneficiaries, Phyhealth together with Physhield is authorized to do business with physicians in states with nearly 14% of the nation's Medicare population. Phyhealth Plans are designed to operate as state licensed health maintenance organizations (HMOs) and to qualify as Medicare Advantage plans authorized under the Medicare Modernization Act of 2003.

Dr. Richard Goulding, a Phyhealth founder and director, further stated, "Medical malpractice insurance rates are outrageously high in many parts of Florida, and the Phyhealth Plan working together with Physhield provides a real solution to the state's independent physicians and medical groups. We now have the tools to give doctors the opportunity to own and manage their own health plan and their own medical malpractice insurer all at the same time. We feel that by owning the HMO and malpractice companies, malpractice insurance, instead of being a chronic nagging outlay of cash, can actually create an "annuity" for physicians. They can earn money, rather than lose it."

About Physicians Healthcare Management Group, Inc.
Phyhealth develops and operates fully integrated healthcare organizations in partnership with physicians. Phyhealth Plans preserve the physician-patient relationship and deliver high-quality affordable healthcare within its selected communities. Phyhealth offers a turnkey, prepaid health plan solution to physicians for their Medicare and other individual patients who prefer to choose their own doctor and who make their own healthcare insurance purchasing decisions. Phyhealth Plans are unique in integrating all aspects of the delivery and financing of care, including providing medical liability insurance protection through Physhield Insurance Exchange, Phyhealth's exclusive risk retention group. The Phyhealth model empowers physicians to proactively manage their patient's general health and medical care and enhances physician financial rewards by increasing practice revenues, reducing expenses and restoring the economic value (equity) of their medical practices.

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.