Prospect Medical Holdings, Inc. Completes Acquisitions

CULVER CITY, Calif.— (BUSINESS WIRE)— Feb. 5, 2004— Prospect Medical Holdings, Inc. (OTC:PMHX.PK - News) announced today that its affiliated physician organization, Prospect Medical Group, Inc. completed the acquisitions of StarCare Medical Group, Inc.; APAC Medical Group, Inc.; and Northwest Orange County Medical Group, Inc.

The three acquisitions are located in Orange County, CA and will increase the managed care patient enrollment of Prospect by approximately 60,000 to an estimated 120,000 patients in Orange County. The total enrollment of Prospect, including the three acquisitions, will increase tp approximately 225,000 enrollees. As a part of the acquisition of StarCare and APAC, Prospect Medical Holdings, Inc. through its wholly-owned subsidiary, Prospect Medical Systems, Inc., also acquired Pinnacle Health Resources, the affiliate management company for StarCare and APAC. Prospect provides management services to affiliated physician organizations in Los Angeles (including the Antelope Valley Region) and Orange counties.