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



               SAFEGUARD COMPLETES MERGER OF PARAMOUNT DENTAL PLAN
                       WITH SAFEGUARD'S FLORIDA DENTAL HMO

                -----------------------------------------------
          TRANSACTION EXPECTED TO BE IMMEDIATELY ACCRETIVE TO EARNINGS

ALISO  VIEJO,  CALIFORNIA,  and  TAMPA,  FLORIDA (SEPTEMBER 5, 2002) - SafeGuard
Health Enterprises, Inc. (OTC Bulletin Board: SFGD) and privately held Paramount
Dental  Plan,  Inc.  today  jointly  announced  the completion of the previously
announced  acquisition  and  merger of Paramount with SafeGuard's Florida Dental
HMO.  Although specific terms were not disclosed, the purchase price was paid in
a  combination of cash, SafeGuard stock and a convertible note.  The transaction
is  expected  to  be  immediately  accretive  to  earnings.

Founded  in  1995  by Nicholas M. Kavouklis D.M.D., Paramount currently has over
225,000  members primarily in the Tampa, St. Petersburg, and Orlando areas.  Dr.
Kavouklis  will  join  SafeGuard as president of SafeGuard's Florida operations,
which  will encompass over 275,000 dental HMO, PPO/Indemnity and Vision members.

SafeGuard  also  announced  the  completion  of the sale of its Utah Dental HMO.
SafeGuard  does  not  expect  to report a significant gain or loss on this sale.

James  E.  Buncher, SafeGuard's president and chief executive officer, said, "We
are  pleased  to have completed the acquisition and merger of Paramount with our
Florida  dental HMO.  We expect the transaction will be immediately accretive to
earnings.  Our due diligence confirmed our belief that joining the two companies
would  create a strong SafeGuard presence in Florida.  We are looking forward to
working  with  the  Paramount  management  to  ensure  a  smooth  integration of
Paramount's members into the combined company.  This transaction strengthens our
position in Central and Southern Florida by increasing our Florida membership to
over  275,000  members.  Through our new headquarters in Tampa and our satellite
office  in Ft. Lauderdale, we anticipate significant growth as well as expansion
into  Northern  Florida.  We  are  also  excited about Dr. Kavouklis joining our
management  team  as  president  of  SafeGuard  -  Florida."

Dr.  Kavouklis, Paramount's president and chief executive officer, said, "We are
very  excited about this merger.  SafeGuard has a substantial amount of industry
knowledge,  experience  and  technology  that  will  complement the strengths of
Paramount.  I  have had extensive discussions



with  SafeGuard's senior management and found that our business philosophies are
congruent.  I  am  looking forward to being part of the combined management team
and  continuing  to  build  on  our  existing  business  in the Florida market."

Mr. Buncher added, "SafeGuard continues to strengthen the Company by focusing on
our  core  business  and  divesting  managed  dental care operations not located
within  our  three  primary  markets  of  California, Florida and Texas.  We are
fortunate  to  have identified a local buyer for our Utah Dental HMO.  They have
also  agreed  to  serve new managed dental care members located in Utah that are
part  of  groups  we  sell  in  our primary markets.  SafeGuard will continue to
market  and  administer dental PPO/indemnity and vision products in Utah.  These
transactions are yet another step in our steady progress toward focus and growth
in  our  target  markets."

SafeGuard provides dental benefit plans with HMO and PPO/indemnity plan designs,
vision  benefit  plans,  administrative  services,  and  preferred  provider
organization  services.  With  the completion of these transactions, the Company
serves  approximately  825,000  members,  primarily  in  California, Florida and
Texas.

SafeGuard  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 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, the Company's Quarterly Reports on
Form  10-Q for the quarters ended March 31, and June 30, 2002, and the Company's
Current  Report  on  Form  8-K dated as of April 24, 2002, on file with the U.S.
Securities  and  Exchange  Commission.

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