Moody's Public Finance Department Rating News; MOODY'S EVALUATES IMPACT

  NEW YORK -- February 27, 1995 -- On February 23, the Federal
Bankruptcy Court in Santa Ana, California ruled that the requirement to
segregate funds for repayment of Orange
$169 million Series A Tax and
Revenue Anticipation Notes (TRANs), as covenanted in the Note Resolution, is
not enforceable under bankruptcy.  This ruling affirms the county's practice
since it filed for bankruptcy on December 6, 1994, of not setting aside funds
for note repayment and, as a result, the ruling does nothing to change the
repayment prospects for the TRANs, due July 28, 1995.  Moody's remains
concerned about the county's ability to implement a solution to avoid default,
given the short timeframe and magnitude of the notes coming due.  The TRANS
are currently rated SG.

  The court's ruling addresses a commonly used credit feature of California
TRANS, that of setting aside funds for repayment ahead of note maturity.  
Notwithstanding the court ruling, Moody's believes the requirement to
segregate note repayment funds for California TRANs has been and will continue
to be a positive credit feature for other California TRAN issuers, as it
imposes a basic cash management discipline on the issuer.  The court's ruling
could have the greatest impact on those financially stressed issuers where
segregation may otherwise serve to enhance credit quality, but where concerns
about bankruptcy may now diminish the analytical value of segregation.

      CONTACT: Moody's Investors Service, New York
               Barbara Flickinger, Vice President - Assistant Director
               Far West Region, (212) 553-7236
               Karen S. Krop, Assistant Vice President, (212) 553-4860
               David Brodsly, Vice President - Manager
               Western Regional Office, San Francisco, (415) 274-1739

Company To Operate On `Business As Usual Basis'

  NEWPORT BEACH, Calif., February 27, 1995 -- href="chap11.comprehensive.html">Comprehensive Care Corp.
(NYSE:CMP)" target=_new>">NYSE:CMP)
announced that a group of dissident holders of its 7-1/2%
convertible subordinated debentures due April 15, 2010 (the "Bonds") filed an
involuntary petition under Chapter 7 of the Bankruptcy Code against the
company in the United States Bankruptcy Court for the Northern District of
Texas, Fort Worth Division, late on Friday, Feb. 24, 1995.  The persons filing
such petition, Jay Lustig on behalf of NBI Inc., Sohail Masood and Mohammad
Saleemi, are a minority subset of those holders which had previously purported
to accelerate the entire principal amount of the Bonds.

  The company stated that it believes the involuntary bankruptcy case was
improperly filed and intends to vigorously oppose such filing, which it
believes is not in the best interests of any company constituencies, including
its debt and equity holders, employees, customers and vendors. The company
stated it is considering all appropriate actions and remedies against the
involuntary petitioners. In the meantime, the company will conduct its
operations on a "business as usual" basis and will continue to pay all vendors
and employees when due.  The company has stated that it regrets that this
action by a small group of dissident bondholders will impair the value for the
holders of all the company's securities.  A negotiating process with
bondholders has been underway since the company missed the interest payment on
the Bonds due Oct. 15, 1994.  The company sated that it presently intends to
pay the interest payment which was due Oct. 15, 1994 to holders of record on
Feb. 28, 1995 if the holders of a majority of the outstanding Bonds have
agreed to rescind the acceleration of the Bonds by Feb. 28, 1995.

  Comprehensive Care Corp. is a cost effective health services organization
providing managed care as well as behavioral health care throughout the United

  /CONTACT:  Chriss W. Street, chairman and president of Comprehensive Care,
714-644-9425; or Rudy R. Miller of The Miller Group, 602-225-0505/