MileStone Healthcare, Inc.

Proposed Ticker: MILE		2501 Cedar Springs Road, Suite 600 LB15
Exchange: NASDAQ-National Market		Dallas, Texas 75201
Industry: Service		(214) 871-9600

All share information is proposed
Type of Shares:	Common Shares	Filing Date:	7/26/96
U.S. Shares Filed:	2,500,000	Filing Range:	$11.00 - $13.00
Non-U.S. Shares Filed:	0	Offering Amount:	$30,000,000
Primary Shares:	2,100,000	Expenses:	-
Secondary Shares:	400,000	Shs Out After:	6,229,142

Manager	Tier	Phone
Smith Barney Inc.	Lead Manager	(718) 921-8473
Furman Selz Incorporated	Co-manager	(212) 309-8200

	Audited Income	Latest Unaudited Income	Prior Unaudited Income		Balance Sheet
	12/31/96				5/31/96
Revenue:	$30.62			Assets:	$27.61
Net Income:	$1.76			Liabilities:	$20.61
EPS:	$0.40			Equity:	$7.00
Note: Dollar amounts are in U.S. millions; Audited figures expressed as full year, unaudited figures are partial year

Business Description

MileStone Healthcare, Inc. is a leading provider of program management services for specialty care units in hospitals to broaden the care continuum provided to patients. MileStone manages a broad range of clinical programs that includes inpatient acute physical rehabilitation, comprehensive outpatient rehabilitation, skilled nursing and subacute care, geropsychiatric services, cardiac outpatient services, and sports and industrial medicine. The company also provides contract therapy services to hospitals, outpatient facilities, subacute facilities, schools and other locations and owns and operates nine outpatient therapy clinics. As of May 31, 1996, the company provided services in 14 states under 121 contracts. Eighty-three of these were program management contracts for hospitals, accounting for 82% of MileStone's revenues for the fiscal year ended May 31, 1996.

Use of Proceeds

The proceeds from the proposed offering will be used to repay indebtedness and for general corporate purposes, including possible acquisitions.

Last updated: 10/28/96