SCHEDULE 14A
(Rule 14a-101)
INFORMATION REQUIRED IN PROXY STATEMENT
SCHEDULE 14A INFORMATION
Proxy Statement Pursuant to Section 14(a)
of the Securities Exchange Act of 1934
Filed by the Registrant [x]
Filed by a Party other than the Registrant [ ]
Check the appropriate box:
[ ] Preliminary Proxy Statement
[ ] Confidential, for Use of the Commission Only (as permitted
by Rule 14a-6(c)(2))
[ ] Definitive Proxy Statement
[ ] Definitive Additional Materials
[X] Soliciting Material Pursuant to Section 240.14a-11(c) or
Section 240.14a-12
Coastal Physician Group, Inc.
(Name of Registrant as Specified In Its Charter)
Coastal Physician Group, Inc.
(Name of Person(s) Filing Proxy Statement)
Payment of Filing Fee (Check the appropriate box):
[ ] $125 per Exchange Act Rules 0-11(c)(1)(ii), 14a-6(i)(1),
14a-6(i)(2) or item 22(a)(2) of Schedule 14A.
[ ] $500 per each party to the controversy pursuant to
Exchange Act Rule 14a-6(i)(3).
[ ] Fee computed on table below per Exchange Act Rules 14a-
6(i)(4) and 0-11.
(1) Title of each class of securities to which
transaction applies:
(2) Aggregate number of securities to which transaction
applies:
(3) Per unit price or other underlying value of
transaction computed pursuant to Exchange Act Rule 0-
11:
(4) Proposed maximum aggregate value of transaction:
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[X] Fee paid previously with preliminary materials.<PAGE>
[ ] Check box if any part of the fee is offset as provided by
Exchange Act Rule 0-11(a)(2) and identify the filing for
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the previous filing by registration statement number, or
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NEWS RELEASE [COASTAL PHYSICIAN GROUP, INC. Letterhead]
FOR IMMEDIATE RELEASE CONTACT: Robert P. Borchert
Senior Vice President
919-383-0355
INDEPENDENT SHAREHOLDER ADVISORY FIRM ENDORSES
MANAGEMENT IN COASTAL PHYSICIAN GROUP PROXY CONTEST
DURHAM, NC, September 20, 1996 -- Coastal Physician Group, Inc.
(NYSE: DR) announced today that Institutional Shareholder
Services, Inc. has recommended that its clients vote for the
Coastal management slate of directors at the Coastal Physician
Group Annual Meeting of Shareholders scheduled for next Friday,
September 27 at 9:00 a.m. local time.
Institutional Shareholder Services (ISS), based in Bethesda,
Maryland, is the leading independent advisor to several hundred
institutional investors in the areas of proxy contests, corpo-
rate governance and other shareholder-related issues.
ISS published its report on September 19 following a face-to-
face meeting with the former CEO of Coastal, Dr. Steven Scott,
his nominees to the board and another former Coastal executive,
during which time they had the opportunity to express their
views regarding Coastal. ISS also interviewed Coastal Chief
Executive Joseph Piemont and other senior Coastal executives.
The ISS report states that "we believe the strategic plan set
forth by management is necessary to maintain Coastal as a via-
ble entity given the company's financial position."
ISS goes on to say, "... we believe the sale of assets is nec-
essary to service the impending debt payment, and the fortifi-
cation of the company's core assets will benefit the company in
the long run ... Because management is open to the possibility
of a sale of the entire company, we believe that its strategy
... will help the company avoid default on its debt obligations
and enhance the position of Coastal ..."
The report concludes, "we recommend that shareholders vote in
favor of management's nominees to the board."
Jacque J. Sokolov, M.D., Coastal Physician Group's Chairman of
the Board, commented: "We are pleased that ISS has endorsed
our plans to elect directors committed to the continued imple-
mentation of our comprehensive plan, which we believe is only
enhancing the value of our organization by reducing our indebt-
edness and improving the operation of our businesses. If re-
elected, our nominees look forward to working with the Coastal
management team in order to maximize value in the near term for
all Coastal shareholders."
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