EXHIBIT 99


      MAGELLAN SIGNS DEFINITIVE AGREEMENT FOR SALE OF EUROPEAN HOSPITALS

ATLANTA--(BUSINESS WIRE)--April 6, 1999--Magellan Health Services Inc., 
(NYSE:MGL), today announced that the company has signed definitive agreements 
for the sale of its European operations to Investment AB Bure (Bure), a 
Swedish company. 

Magellan's European operations include Charter Chelsea and Charter 
Nightingale, both in London, and La Metairie Clinic in Switzerland. The 
transaction is scheduled to be completed no later than April 26, 1999. The 
price to be received by Magellan is within the range that was previously 
disclosed in Magellan's 1998 Annual Report. 

Investment AB Bure is an industrial investment firm focusing on the advanced 
service sector. Bure operates five business divisions in addition to its 
asset management performed by the parent company. These divisions include 
health care, information technology, infomedia, education and investments. 

"We are pleased to complete this significant asset sale which improves our 
balance sheet and represents another important step in Magellan becoming a 
pure specialty managed care operation," said Henry Harbin, president and CEO 
of Magellan Health Services. "The bulk of the sale proceeds will be used to 
reduce Magellan's outstanding term loans with a lesser amount going towards 
our revolving line of credit and overall liquidity." 

Harbin continued, "The sale to Bure represents a tremendous opportunity for 
the employees of these three facilities. There is a significant commitment on 
Bure's part to the European health care marketplace and these assets will 
represent an excellent addition to their portfolio while allowing the 
facilities to continue to provide high quality care with new opportunities 
for service expansion." 

Per Batelson, president and CEO of Bure Health Care, said, "We have taken a 
strong position in the rapidly expanding privately produced health care 
market in Sweden and Norway. Now we will become a major and attractive 
operator in a European perspective. The hospitals which we have acquired will 
continue to expand and, at the same time, they will be contributing to the 
establishment of psychiatric operations in other high priority markets." 

Magellan Health Services Inc., (NYSE:MGL) is one of the country's largest 
specialty care managers and human service providers. The Company manages the 
behavioral care of approximately 65 million lives with an additional 4.0 
million members covered under non-behavioral/specialty care contracts. The 
Company also provides a wide range of human services to nearly 6,300 
individuals through the MENTOR Network.

Certain of the statements in this press release including, without 
limitation, statements regarding transaction completion and collection of 
proceeds constitute forward-looking statements contemplated under the Private 
Securities Litigation Reform Act of 1995. 

Risk factors such as satisfactory delivery of closing documents and purchase 
price could prevent the Company from completing the sale discussed. 

For a more complete discussion of risk factors affecting the business, please 
see "Cautionary Statements - The Company" and "Cautionary Statements - CBHS" 
in Magellan's Annual Report on Form 10-K for the fiscal year ended Sept. 30, 
1998 filed with the Securities and Exchange Commission on Dec. 29, 1998 and 
also the Company's Quarterly Report on Form 10-Q for the quarter ended Dec. 
31, 1998 filed with the Securities and Exchange Commission on Feb. 16, 1999.

        CONTACT:        Magellan Health Services Inc., Columbia, Md.
                        Kevin Helmintoller, 410/953-1218
                        Erin Somers, 410/953-2405