FOOL CONFERENCE CALL SYNOPSIS*
By Greg Markus (MF Boring)

Prime Medical Services <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: PMSI)") else Response.Write("(Nasdaq: PMSI)") end if %>
1301 Capital of Texas Highway
Austin, TX 78746
(512) 328-2892

ANN ARBOR, Mich. (Feb. 27, 1997) -- PRIME MEDICAL SERVICES is the largest operator of lithotripters in the U.S., with 55 lithotripters in 32 states and contracts with approximately 400 hospitals and 255 managed care companies. The company reported today its fourth quarter and 1996 results.

FINANCIAL RESULTS. Net income for the fourth quarter increased by 65% to $3.39 million, or $0.17 per share, versus $2.06 million, or $0.13 per share, for the year ago period. Quarterly revenues nearly tripled, to $22.2 million versus $7.63 million a year ago. Both the EPS and revenues results were in line with analysts' estimates. Revenues for the year more than tripled to $72.4 million from $23.2 million for 1995. Net income before non-recurring financial costs for 1996 was $12.5 million, or $0.67 per share, a 73% increase over the 1995 net income of $7.2 million, or $0.46 per share.

HAWAII PARTNERSHIP. Prime recently announced the formation of a new partnership to serve the state of Hawaii with lithotripter services on a mobile basis. The company just received approval of its certificate of need (CON) application, has ae use. Five hospitals on Oahu supported Prime's CON application. This will be the first mobile lithotripsy service in the State of Hawaii. Prime expects the partnership to be fully operational in July.

PROSTATRON VENTURE. Prime is negotiating a joint venture with EDAP Technomed to develop mobile routes similar to the lithotripsy business but using a new machine, called a Prostatron, for treating benign prostatic hyperplasia (BPH). Prime is meeting with doctor groups to establish routes to enter the Prostatron business, and the company expects to have formed at least three partnerships and have some operational experience with the Prostatron by the end of the year. This business won't affect earnings in 1997 but has significant potential thereafter.

PLANS FOR GROWTH IN 1997. Company executives said they anticipate the addition of new partnerships, the expansion of existing partnership interests, and further selective acquisitions. Toward that end, Prime is negotiating with a consortium of banks to increase the company's line of credit by approximately $40 million to facilitate growth. The company's stated goal is "to accelerate its evolution towards becoming recognized nationally as the 'Urologist Company.'" The company is looking to provide additional services to its existing network of urologists and other urologists throughout the U.S. Currently, Prime works with approximately 25% of the nation's active urologists. Prime has been focusing on the Prostatron venture and possibilities for providing new services for urologist offices and therefore has not acquired new lithotripsy routes recently. The company could acquire four to six new lithotripsy routes in coming months, as well as increase its stake in perhaps three to five existing partnerships, on top of the ten such increases in minority interests that Prime executed in the past few months.

INTERNAL BUSINESS EFFICIENCIES. The company expects to become more efficient in 1997 as they continue to merge Prime's and Lithotripters Inc.'s administration and accounting operations. That will take six to nine months to complete and will yield savings in nine to twelve months. The company has also negotiated more favorable insurance and maintenance rates in light of its greatly increased scale of operations and penetration of the industry.

* A Fool conference call synopsis represents an effort to highlight the salient points of a conference call and should not be taken as an authoritative accounting or transcription of the entire event. Note: Statements made by a company other than historical information may constitute forward-looking statements for which the company can claim protection under the Safe Harbor Act. Please consult the company's filings with the SEC for information on risk factors which might cause actual results to differ materially from the information contained in these forward-looking statements.