

                    FOR IMMEDIATE RELEASE                Contact:  Pamela Sherry
                                                       Telephone:  (910)584-5171
                                                   Ext. 6768

                  LABORATORY CORPORATION OF AMERICA-TM- OBTAINS
                         $187 MILLION LOAN AND EXTENSION
                    TO JANUARY 31, 1997 OF BANK CREDIT WAIVER
                                        
                                        
BURLINGTON,  NC,  DECEMBER  30, 1996 -- Laboratory  Corporation  of  America-TM-
Holdings (LabCorp-TM-) (NYSE: LH) today announced that it has obtained a loan of
$187  million  from an affiliate of Roche Holding Ltd, which also  controls  the
Company's principal stockholder.  The loan, which was made on terms approved  by
the  Company's  independent  directors, is an  interim  step  in  the  Company's
previously announced intention of recapitalizing its balance sheet.  The Company
intends to use the loan proceeds to pay the previously announced settlement with
the  U.S. government to conclude federal investigations related to prior billing
practices of companies that merged to form LabCorp in 1995.

     LabCorp has also obtained an extension to January 31, 1997, of the existing
waiver of certain covenants in its bank credit agreement.

    Although  the  Company  is  still considering a range  of  alternatives  for
recapitalizing  its  balance  sheet, the Company believes  that  any  successful
recapitalization  plan will also require it to raise additional  equity.   There
can,  however,  be  no assurance that the Company will be able  to  successfully
complete any proposed recapitalization plan.

      Laboratory Corporation of America-TM- Holdings (LabCorp-TM-) is a national
clinical  laboratory  organization with estimated annualized  revenues  of  $1.6
billion.   The Company operates primary testing facilities nationally,  offering
more  than 1,700 different clinical assays, from routine blood analysis to  more
sophisticated  technologies.  LabCorp performs diagnostic tests for  physicians,
managed  care  organizations,  hospitals, clinics,  long-term  care  facilities,
industrial companies and other clinical laboratories.
                                        
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