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 FILES FORM 10
WITH SECURITIES AND EXCHANGE COMMISSION

Culver City, CA— June 9, 2004— Prospect Medical Holdings, Inc. (PMHX.PK), a Southern California health care management services company, today announced that on May 27, 2004 it filed a Form 10 Registration Statement with the Securities and Exchange Commission ("SEC") to register its common stock under the Securities Exchange Act of 1934 ("Exchange Act") and to seek a listing of its common stock on the American Stock Exchange ("AMEX").

A copy of the Form 10 filing is available at http://www.prospectmedicalholdings.com/docs/form10.htm and at http://www.sec.gov. The Form 10 will not become effective until the SEC completes its review of the filing and any amendments to the Form 10 that the Company may be required to file. In addition, the Form 10 will not become effective until the AMEX certifies to the SEC that it has accepted the Company's common stock for listing on that exchange. There is no assurance that the Company will be able to have an AMEX listing approved.

Upon the effectiveness of its Form 10 Registration Statement, the Company will become 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 will also become subject to the provisions of the Sarbanes-Oxley Act of 2002.

Prospect Medical Holdings, Inc. is a health care management services organization that provides management services primarily to affiliated independent physician associations ("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.

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. When used in this discussion, the words "anticipates", "estimates", "expects", "intends", "plans" and variations thereof and similar expressions are intended to identify forward-looking statements. Such forward-looking statements are subject to contingencies and risks, including those set forth in the Company's Form 10 Registration Statement under "Management's Discussion and Analysis of Financial Condition and Results of Operations— Risk Factors" and elsewhere in the Form 10.