Exhibit 99

FOR IMMEDIATE RELEASE


                                           INVESTOR CONTACT: Kevin Helmintoller
                                                             410-953-1218

                                           MEDIA CONTACT:    Kristin Brunnworth
                                                             410-953-2423

                         MAGELLAN HEALTH SERVICES SELLS
                  $250 MILLION OF 9.375% SENIOR UNSECURED NOTES

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COLUMBIA, Md. - May 24, 2001 - Magellan Health Services, Inc., (NYSE:MGL),
announced today that it has completed the marketing of an offering of $250
million in aggregate principal amount of senior unsecured notes. The senior
unsecured notes have a coupon rate of 9.375% and mature in November 2007. The
issuance is expected to be completed by May 31, 2001.

         The proceeds from the offering will be used by Magellan to repay
outstanding debt under the company's existing bank credit facility that expires
in February 2006. The required principal payments under the company's bank
credit facility will be reduced by the full $250 million of the notes over the
remaining term of the bank credit facility, with $111 million of the reduction
occurring on payments that were due between June 30, 2001 and September 30,
2003. Upon completion of the issuance of the notes, the amount outstanding on
the company's bank credit facility will be $120 million.

         The senior notes have not been, and will not initially be, registered
under the Securities Act of 1933, as amended, and are being offered and sold
pursuant to applicable exemptions from the registration requirements under the
Securities Act.

         Certain of the statements made in this press release constitute
forward-looking statements contemplated under the Private Securities Litigation
Reform Act of 1995. The completion of the aforementioned offering is subject to
customary closing conditions. No assurance can be given that the aforementioned
offering will be completed.

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