Superior National Insurance Group, Inc. Announces Completion of 
                      Business Insurance Group, Inc. Acquisition

     CALABASAS, Calif.--Dec. 10, 1998--Superior National Group, Inc. 
(Nasdaq:SNTL) announced the completion of its previously announced 
acquisition of Business Insurance Group, Inc. from Foundation Health Systems, 
Inc. (NYSE:FHS) for $285 million.  The sale includes California Compensation 
Insurance Company, California's largest private workers' compensation 
insurance carrier, Business Insurance Company, which offers workers' 
compensation coverage in 12 states outside of California, and Combined 
Benefits Insurance Company, which is licensed in California for both workers' 
compensation and accident and health insurance.  SNTL will complete the 
acquisition of New York-domiciled Commercial Compensation Insurance Company 
upon receipt of New York approval, which is expected shortly.  In connection 
with acquisition of Commercial Compensation Insurance Company SNTL has placed 
approximately $6.8 million in an escrow account, which will be released to 
FHS upon receipt of regulatory approval and completion of the sale.

     As previously announced, SNTL plans to transfer the business and employees
of Business Insurance Company ("BICO") to an affiliate, and then sell BICO to
Zurich Centre Group, LLC ("Zurich"), a subsidiary of the Zurich Insurance Group,
upon receipt of required regulatory approval.  The sale of BICO to Zurich is
expected to occur in the near future.

     William L. Gentz, SNTL President and Chief Executive Officer, stated, 
"The combined Superior National and Business Insurance Group operations are 
now a reality, something both parties have worked hard to achieve over the 
past seven months.  Our new organization is the largest private workers' 
compensation writer in California, and the ninth largest writer of workers' 
compensation insurance in the nation.  The assets of our new group are 
expected to exceed $1.6 billion, written premiums during 1999 should be over 
$750 million, and policyholders' surplus exceeds $360 million.  Superior 
National is now responsible for the workers' compensation insurance needs of 
nearly 55,000 policyholders, and for the care, safety, and health of more 
than one million working people."

     Prior to the acquisition of Business Insurance Group, Superior National 
Insurance Group was the parent company of Superior National Insurance Company 
and Superior Pacific Casualty Company, specialty workers' compensation 
insurers operating in California through branch offices located in 
Sacramento, Pleasanton, Fresno, Calabasas, Woodland Hills, Irvine, San Diego, 
and in Phoenix, Arizona.  The Superior National group of companies now also 
includes California Compensation Insurance Company, founded in 1932 and the 
largest private sector workers' compensation insurance company in California, 
and Combined Benefits Insurance Company, a specialist in 24-hour cover 
workers' compensation and accident and health insurance products.  Upon 
receipt of New York regulatory approval, Commercial Compensation Insurance 
Company will be acquired from FHS as well, enhancing SNTL's ability to 
underwrite workers' compensation insurance across the nation.

     This release contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act
of 1934.

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     CONTACT:  Superior National Insurance Group, Inc., Calabasas
               J. Chris Seaman, 828/878-2240