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          Amer Physicians: Reports First Quarter Earnings



             AMERICAN PHYSICIANS SERVICE GROUP, INC.
         REPORTS 58% INCREASE IN FIRST QUARTER EARNINGS



AUSTIN, TEXAS, May 15, 2000 - American Physicians Service Group, Inc. 
("APS") (NASDAQ:AMPH) today announced results for the first quarter of
2000.  For the three months ended March 31, 2000, revenues increased by 50%
to $6,557,000 from $4,371,000 in the comparable year-ago period.  Net
earnings of $523,000, or $.19 per share in the current quarter, compares to
net earnings of $331,000 or $.06 per share in the same quarter of 1999.

Ken Shifrin, APS Chairman of the Board stated, "All of our operations
trended up in the first quarter, led by Financial Services which posted 48%
growth in revenues and 73% growth in earnings.  Opportunities to serve our
customers, created by the strong first quarter market, were supplemented by
our continued participation in several investment banking projects.  As we
indicated in the fourth quarter, our insurance operations are beginning to
benefit from a more favorable cycle in physician malpractice insurance.  
While not yet contributing to earnings, break even results this quarter
were a significant improvement over the $150,000 loss of a year ago."

Mr. Shifrin continued, "Our affiliate and our investments also had
good quarters.  Prime Medical Services, Inc. ("Prime") (NASDAQ: PMSI)
continued to grow, particularly its LASIK surgery business, with two new
acquisitions this year.  Our year-over-year comparison of equity in
earnings of affiliates shows a modest decline, despite Prime's improved
earnings.  This was a result of our reduced ownership, having exchanged
Prime shares for treasury shares in the second quarter of 1999.  Uncommon
Care, the developer and operator of dedicated Alzheimer's care centers also
continued its expansion.  With the opening of one new facility, two under
construction and another ready to break ground, Uncommon Care expects to be
operating ten facilities by the end of the year."

Mr. Shifrin concluded, "We continue to try to build and preserve
shareholder value.  Our acquisition of treasury shares last year was a
significant factor in the tripling of diluted earnings per share this
quarter.  More recently, we announced a plan to purchase shares in the open
market to fulfill share exchange agreements related to our former physician
practice management company."

APS is a management and financial services firm with subsidiaries and
affiliates which provide: medical malpractice insurance services for
doctors; brokerage and investment services to institutions and high net
worth individuals; lithotripsy services in 34 states; refractive vision
surgery; and dedicated care facilities for Alzheimer's patients.  The
Company is headquartered in Austin, Texas and maintains offices in Dallas
and Houston.

This press release includes forward-looking statements related to the
Company that involve risks and uncertainties that could cause actual
results to differ materially.  These forward-looking statements are made in
reliance on the "safe harbor" provisions of the Private Securities
Litigation Reform Act of 1995.  For further information about these factors
that could affect the Company's future results, please see the Company's
recent filings with the Securities and Exchange Commission.  Prospective
investors are cautioned that forward-looking statements are not guarantees
of future performance.  Actual results may differ materially from
management expectations.  Copies of the filings are available upon request
from the Company's investor relations department.


               AMERICAN PHYSICIANS SERVICE GROUP, INC. 
                     SELECTED FINANCIAL DATA 
                (In thousands, except per share data) 

                                              Three Months Ended March 31,
                                                    2000        1999
Revenue                                           $6,557      $4,371
Expenses                                           6,228       4,520
Operating income (loss)                              329        (149)
Equity in earnings of unconsolidated affiliates      471         518
Earnings from continuing operations before income
  taxes and minority interest                        800         369
Income tax expense                                   286         126
Minority interest                                      9          25
Earnings from continuing operations                  523         268
Discontinued Operations: 
Earnings from discontinued operations net of 
  income tax of $0 and $32 for the three
  months in 2000 and 1999, respectively               --          63
Net earnings                                        $523        $331

Diluted earnings per share:  
  Earnings from continuing operations              $0.19       $0.05
  Discontinued operations                             --        0.01
  Net earnings                                     $0.19       $0.06
  Weighted average shares outstanding (diluted)    2,750       5,133


For further information, visit APS' website at www.amph.com or contact:

Mr. Kenneth Shifrin, Chairman of the Board (or)
Mr. W. H. Hayes, Sr. Vice President - Finance
American Physicians Service Group, Inc.
1301 Capital of Texas Highway, C-300
Austin, Texas  78746
(512) 328-0888


End.