The J. Rish Group, Inc.

Notes to Financial Statements

The accompanying condensed unaudited financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to form 10-QSB. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. The results of operations for the periods presented are not necessarily indicative of the results to be expected for the full year. The accompanying financial statements should be read in conjunction with the company's form 10-KSB filed for the year ended December 31, 1999.

Management's Discussion and Analysis of
Financial Condition and Results of Operations

According to Julian Rish, CEO

Revenue before contractuals and other allowances, for the second quarter of 2000 totaled $10,312,862, an increase of approximately $500,000 over the first quarter and a year to date total of approximately $20,000,000. We are well on track to hit our 2000 annualized target of $55,000,000. Our new hospital in Marion, Louisiana is awaiting survey by state and federal authorities, which is now scheduled for August 17, 2000. We had targeted this opening for June 15, but construction delays and survey dates have delayed us until August. We are very optimistic that we will be surveyed on this date, and the strategically placed specialized inpatient rehab hospital will enjoy an immediate strong census and revenue of approximately $1,000,000 per month. The J. Rish Group is in negotiations to sell the physical property in this hospital and enter into a long-term management contract with the new owners. Should this take place, our gross revenue to the J. Rish Group will be reduced from approximately $1,000,000 per month to approximately $50,000 to $150,000 per month, depending upon the total number of services provided by us. However, the management fees are not cost-reimbursed dollars and will thus allow us to continue our transition to a management company and operating profits should make our company attractive to a wider range of investors and thus increase the value of our stock to the benefit of our current shareholders.

In addition to the Marion Hospital, we have entered into a management contract for an acute inpatient rehab hospital in Luling, Louisiana, just northwest of New Orleans and are in negotiations with a 55 bed general hospital in South Central Mississippi. This segment of our business (hospital management) will become the mainstay of our future.

Other "for profit" avenues are being developed for our company. We are currently installing a 1.5 magnetic resonance imaging unit (MRI) center in Clinton, Louisiana where we currently operate an outpatient rehab center, a rural health clinic, a health club and a two physician private practice. We are currently in negotiations with one other family practitioner in Clinton to acquire his practice. Should we be successful, we will see 90% (approximately 150 patients/day of the patients seen per day in this small rural, bedroom community north of our headquarters city of Baton Rouge while delivering a very high, quality of health care and a very diversified range of services.

The MRI Center has excellent prospects of profitability since recent changes in HCFA have seriously reduced the fee schedule for hospitals, where much of this type work has been performed. Freestanding MRI Centers are not affected by these new HCFA developments and the prospects for very nice returns on investment are great. Clinton, Louisiana is certainly a small community in which we have a grand presence.

Either in Clinton or within 10 to 15 miles of Clinton, we plan to locate an acute inpatient rehab hospital. Since this geographic locale is virtually surrounded by our outpatient clinics, the time is right and natural for this final component to develop and maintain a strong multifaceted regional healthcare presence. The fact that we will diversify into private areas such as hospital management, free-standing MRI Centers and corporately owned medical practices is helping our transition out of dependence on Medicare cost-reimbursed not-for-profit revenue.

Management is currently working with two investment banking firms in New York to raise approximately $20 million dollars to aid our company in continued growth. Capital is needed to allow us to take advantage of unprecedented growth opportunities that greet us almost daily. Specifically, our needs for capital fall into four categories as follows:

We continue to be very excited about our future at the J. Rish Group. Our determination to counter balance our revenue with private dollars as compared to Medicare dollars continues at the scheduled pace. Profits are in our future. Profits should excite our present shareholders and attract new ones. Our efforts with investment bankers will lead to new capital and hopefully market makers. Management is very pleased with progress to date and is confident we will remain on track to meet our growth objective.