CorVel Announces Revenues and Earnings

CorVel Announces Revenues and Earnings 


IRVINE, Calif., July 26  /PRNewswire-FirstCall/ -- CorVel Corporation
(NASDAQ:CRVLE) reported earnings per share of $0.28 for the quarter ended June
30, 2005, compared to earnings per share of $0.32 for the same quarter of the
prior year.  Net income for the quarter was $2.8 million compared to $3.4
million for the prior year's June quarter.  June quarter revenues were $70.7
million, down 7% from $76.3 million in the June quarter of 2004.  Shares
outstanding were reduced in line with revenues, however, the increased cost of
regulatory compliance resulted in a reduction in earnings per share.

During the quarter the national economy continued to show an improving jobs
market.  Workers' compensation claims lag the economy, though, and industry
claims volumes have remained soft.  Gross margins expanded in the quarter as
Network Solutions revenues increased as a percent of total revenues.  Network
Solutions results improved as new product revenue expanded. The Company has
been increasing prices in its patient management service line. Case management
referral volume was soft in the June quarter.

The expansion of the Company's medical review product line continues to be the
primary focus of business development activities.  Investments in artificial
intelligence and document management have combined to enable advances in
workflow management.  Medical documents can now be placed with the most
appropriate review resources, creating industry-leading outcomes for employers.
 Substantial restructuring of internal processes were required over the last two
years to incorporate this technology.  Achieving the resulting economies will be
a priority over the coming year.

Despite diligent efforts, the work necessary to complete the Company's Form
10-K was not completed by the filing date.  The Company's registered public
accounting firm is reviewing the Company's internal controls as required by
Section 404 of the Sarbanes-Oxley Act of 2002.  The Company intends to complete
and file its Form 10-K as soon as possible.

About CorVel

CorVel Corporation (http://www.corvel.com/) is a national provider of
leading-edge services and solutions in the field of managed healthcare. CorVel
specializes in applying information technology and e-commerce applications to
improve healthcare management in the workers' compensation, group health, auto
and disability management insurance markets.  The Company provides networks of
preferred providers, case management, utilization management, independent
medical evaluations and medical bill review to more than 2000 clients through
its nationwide branch office network.  Leveraging its commitment to flexibility
and personal service, CorVel delivers custom solutions for employers, insurers,
third party administrators and government entities.

Safe Harbor Statement under the Private Securities Litigation Reform Act of
1995

All statements included in this report, other than statements or
characterizations of historical fact, are forward-looking statements.  These
forward-looking statements are based on the Company's current expectations,
estimates and projections about the Company, management's beliefs, and certain
assumptions made by the Company, and events beyond the Company's control, all
of which are subject to change.  Such forward-looking statements include, but
are not limited to, statements relating to the Company's financial statements,
the Company's ability to file its Form 10-K, Grant Thornton LLP's ability to
issue a report attesting to management's assessment of the effectiveness of the
Company's internal controls over financial reporting, the Company's inability to
satisfy the listing requirements of the Nasdaq Stock Market and the possible
delistment of the Company common stock from the Nasdaq Stock Market. 
Forward-looking statements can often be identified by words such as
"anticipates," "expects," "intends," "plans," "predicts," "believes," "seeks,"
"estimates," "may," "will," "should," "would," "could," "likely," "potential,"
"continue," "ongoing," similar expressions, and variations or negatives of
these words.  These forward-looking statements are not guarantees of future
results and are subject to risks, uncertainties and assumptions that could
cause the Company's actual results to differ materially and adversely from
those expressed in any forward-looking statement.

The risks and uncertainties referred to above include, but are not limited to,
risks relating to the Company's ability to file its annual report on Form 10-K
as indicated or to receive when expected from its external auditors an audit
report on its financial statements and an attestation report on management's
assessment of internal control over financial reporting; risks relating to the
Company's ability to maintain an effective system of internal control over
financial reporting; risks that significant deficiencies and/or material
weaknesses will be identified; and other factors described in this report and
the Company's filings with the Securities and Exchange Commission, including
"Risk Factors" in the Company's Quarterly Report on Form 10-Q for the quarter
ended December 31, 2004.  The forward-looking statements in this report speak
only as of the date they are made.  The Company undertakes no obligation to
revise or update publicly any forward-looking statement for any reason.

   CorVel Corporation
   Income Statement
   Unaudited - Three months ended June 30, 2004 and June 30, 2005


                                        Three months        Three months
                                    ended June 30, 2004  ended June 30, 2005

  Revenues                               $76,256,000         $70,667,000
  Cost of revenues                        63,347,000          58,663,000

  Gross profit                            12,909,000          12,004,000
  General and administrative expense       7,363,000           7,434,000

  Income before income taxes               5,546,000           4,570,000
  Income taxes                             2,135,000           1,760,000

  Net income                              $3,411,000          $2,810,000
  Earnings per share:
  Basic                                        $0.32               $0.28
  Diluted                                      $0.32               $0.28

  Weighted average shares
  Basic                                   10,582,000           9,960,000
  Diluted                                 10,704,000          10,020,000



   Balance Sheet
   Unaudited - As of March 31, 2005 and June 30, 2005

                                         March 31, 2005     June 30, 2005
  Assets
  Cash and cash equivalents                 $8,945,000        $9,970,000
  Accounts receivable, net                  45,611,000        43,916,000
  Prepaid taxes and expenses                 3,891,000         2,965,000
  Deferred income tax assets                 4,152,000         4,451,000
  Property and equipment, net               29,649,000        30,110,000
  Goodwill and other assets                 13,045,000        13,028,000
   TOTAL ASSETS                           $105,293,000      $104,440,000

  Liabilities and Stockholders' Equity
  Accounts and taxes payable                12,293,000        14,552,000
  Accrued Liabilities                       11,059,000         9,782,000
  Deferred income tax liability              7,700,000         7,185,000
  Common stock and paid-in capital          57,672,000        59,754,000
  Treasury stock                          (113,481,000)     (119,693,000)
  Retained earnings                        130,050,000       132,860,000
    TOTAL LIABILITIES AND EQUITY          $105,293,000      $104,440,000


DATASOURCE: CorVel Corporation



CONTACT:  Richard Schweppe of CorVel Corporation, [phone]



Web site:  http://www.corvel.com/ 

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