For more information, please contact either listing below:

Prospect Medical Holdings, Inc.
Linda Hodges,
Executive Vice President
(310) 337.4170
linda.hodges@prospectmedical.com

Investor Relations Counsel:
The Equity Group Inc.
Devin Sullivan
(212) 836-9608
dsullivan@equityny.com

FOR IMMEDIATE RELEASE

PROSPECT MEDICAL HOLDINGS TO COMMENCE TRADING ON THE AMERICAN STOCK EXCHANGE UNDER THE SYMBOL PZZ

Culver City, CA— May 10, 2005 — Prospect Medical Holdings, Inc. ("Prospect Medical"), a managed care management company serving 10 affiliated Independent Physician Associations ("IPAs") in Southern California, today announced that its common stock is expected to commence trading on the American Stock Exchange ("AMEX") on May 11, 2005 under the symbol PZZ. The stock had traded on the Pink Sheets under the symbol PMHX

This approval is contingent upon the Company being in compliance with all applicable listing standards on the date it begins trading on the AMEX, and may be rescinded if the Company is not in compliance with such standards.

Dr. Jack Terner, Chairman and Chief Executive Officer of Prospect Medical, commented, "We are very pleased to announce this significant corporate milestone. We believe that this listing will elevate Prospect Medical's profile in the investor community, provide enhanced liquidity for investors and strengthen our competitive position. We continue to execute on our disciplined and deliberate acquisition strategy, and believe that the IPA market in southern California is ripe for further consolidation."

This listing follows the action of the Securities and Exchange Commission, which declared effective Prospect Medical's Amended Form 10 Registration Statement that was filed on April 7, 2005 to register its common stock under the Securities Exchange Act of 1934. A copy of the Form 10 filing is available at www.prospectmedicalholdings.com and at www.sec.gov. Prospect Medical is now a reporting issuer under the Exchange Act and will be required to file annual and quarterly reports on Forms 10-K and 10-Q and proxy materials in connection with meetings of shareholders. As a reporting issuer, the Company and its management are now also subject to the provisions of the Sarbanes-Oxley Act of 2002.

ABOUT PROSPECT MEDICAL HOLDINGS

Prospect Medical Holdings, Inc. is a health care management services organization that provides management services primarily to affiliated IPAs. IPAs are professional corporations that contract with independent physicians and other health care providers to create a medical panel of primary care and specialist physicians, and other health care service providers, capable of providing the full range of medical services to individuals enrolled in health maintenance organization ("HMO") managed care health plans. Prospect's 10 IPAs are comprised of over 4,000 primary care and specialist physicians serving approximately 191,000 HMO enrollees at December 31, 2004. The Company has 10 HMO contracts.

This press release contains forward-looking statements. Additional written or oral forward-looking statements may be made by the Company from time to time, in filings with the Securities and Exchange Commission or otherwise. Statements contained herein that are not historical facts are forward-looking statements. Investors are cautioned that forward-looking statements, including the statements regarding anticipated or expected results and the future introduction of new products, involve risks and uncertainties which may affect the Company's business and prospects, including those outlined in the Company's Form 10 and subsequently filed reports. Any forward-looking statements contained in this press release represent our estimates only as of the date hereof, or as of such earlier dates as are indicated, and should not be relied upon as representing our estimates as of any subsequent date. While we may elect to update forward-looking statements at some point in the future, we specifically disclaim any obligation to do so, even if our estimates change.