CONTACT: FOR SAFEGUARD HEALTH ENTERPRISES, INC.  FOR PARAMOUNT DENTAL PLAN, INC.
         James E. Buncher                        Nicholas  M.  Kavouklis  D.M.D.
         President  and                          Chairman  and
           Chief  Executive  Officer               Chief  Executive  Officer
         (949)  425-4300                         (813)  221-4048  x223


                      SAFEGUARD ANNOUNCES MAJOR ACQUISITION
                           TO EXPAND FLORIDA PRESENCE
                ------------------------------------------------
                TRANSACTION EXPECTED TO BE ACCRETIVE TO EARNINGS


ALISO  VIEJO, CALIFORNIA, and TAMPA, FLORIDA (APRIL 24, 2002) - SafeGuard Health
Enterprises, Inc. (OTC Bulletin Board: SFGD) and privately held Paramount Dental
Plan,  Inc.  (Paramount),  today  jointly  announced the signing of a definitive
agreement  under  which  SafeGuard  would purchase Paramount.  Although specific
terms  were  not  disclosed, the purchase price will be paid in a combination of
cash,  SafeGuard  stock  and  a  convertible  note.  The  transaction,  which is
expected  to  close  in  the  third  quarter  subject to regulatory approval, is
expected  to  be  accretive  to  earnings  in  2002.

Founded  in  1995  by Nicholas M. Kavouklis D.M.D., Paramount currently has over
200,000  members  primarily  in  the  Tampa,  St. Petersburg, and Orlando areas.
Revenues  for  2001  were  over  $6  million.

James  E. Buncher, SafeGuard's president and chief executive officer, said, "The
combination of SafeGuard and Paramount will substantially expand our presence in
Tampa,  St.  Petersburg  and  Orlando,  which are major growth areas in Florida,
giving  us  the  ability  to  compete  more  effectively on a broader scale.  In
addition  to  being accretive to earnings in 2002, we view this acquisition as a
major  event  for  SafeGuard because it confirms our confidence in the revamped,
fiscally  sound  foundation  that  SafeGuard now has in place.  First, we looked
inward  and  strengthened  our  company, giving us the fiscal and organizational
integrity  to  focus  on  external  growth.  We  are  now  actively  seeking
complementary  acquisitions  that,  like  Paramount, represent quality additions
that  further  strengthen  our  presence  in  existing  markets."

Nicholas M. Kavouklis D.M.D., Paramount's president and chief executive officer,
said,  "We are very excited about this merger.  SafeGuard possesses a great deal
of  industry  knowledge,  experience  and  technology  that  will complement our
strengths.  I have had extensive meetings with SafeGuard's senior management and
found  that  our  business  philosophies are congruent.



I  am  looking  forward  to  working  with  their management team to establish a
significant  presence  in  the  Florida  market."
SafeGuard also announced that, simultaneous with the closing of the transaction,
it  would  enter  into  a three-year employment agreement with Dr. Kavouklis and
establish  its  SafeGuard  Florida  headquarters  in  Tampa,  Florida,  with Dr.
Kavouklis  serving  as  president  and  a  director of SafeGuard - Florida.  Dr.
Kavouklis, who has extensive knowledge of the Florida market and high visibility
in  the  dental  community, will, in addition to the California and Texas market
heads,  report  to  Stephen  J.  Baker, SafeGuard's executive vice president and
chief  operating  officer.

In  commenting  on  his  new  position, Dr. Kavouklis added, "I am pleased to be
joining  the SafeGuard team.  I am impressed with their vision, management team,
resources and commitment to expanding their Florida business.  Together, we will
have  a  significant  presence  in  the  Florida  market."

SafeGuard provides dental benefit plans with HMO and PPO/indemnity plan designs,
vision  benefit  plans,  administrative  services,  and  preferred  provider
organization  services.  The  Company  serves  approximately  625,000  members,
primarily  in  California,  Florida  and  Texas.

The  Company  notes  that statements contained in this news release that are not
based  on  historical  facts  are  forward-looking  statements, and as such, are
subject  to  uncertainties  and  risks that could cause actual results to differ
materially  from  those  projected  or implied by such statements.  These risks,
contingencies  and  uncertainties,  many  of which are beyond the control of the
Company,  include  the  possibility  that  the  Company  may  not consummate the
above-described transaction or may be unable to successfully integrate Paramount
and  SafeGuard's Florida operation, and those risk factors and other information
that  are  set  forth  in  the Company's Annual Report on Form 10-K for the year
ended  December  31,  2001,  on  file  with  the  U.S.  Securities  and Exchange
Commission.

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