HEALTHEXTRAS HealthExtras, Inc.
2273 Research Boulevard
Rockville, MD 20850
Telephone: 301.548.2900
Facsimile: 301.548.2990
FOR IMMEDIATE RELEASE Contact: Marshall J. Coleman
Chief Marketing Officer
301-548-2900
[email protected]
Contact: Arthur M. Jones
Chairman, President, CEO
205-795-7220
[email protected]
HEALTHEXTRAS ACQUIRES CONTROLLING INTEREST IN INTERNATIONAL PHARMACY MANAGEMENT
Pharmacy Benefit Management Company Broadens
HealthExtras' Product Portfolio and Reach Into Employer Group Markets
ROCKVILLE, MD - November 14, 2000 - HealthExtras, Inc. (NASDAQ: HLEX), a leading
source of affordable health and disability programs developed specifically for
individuals, small businesses, and employer groups, today announced the
acquisition of a controlling interest in International Pharmacy Management, Inc.
(IPM), a Birmingham, Alabama-based pharmacy benefits manager. The maximum
consideration payable in the transaction will not exceed $8.5 million and will
consist primarily of cash.
The IPM transaction provides HealthExtras additional products and accelerated
access into the small and mid-sized employer group market. According to David T.
Blair, Chief Executive Officer of HealthExtras, "The IPM acquisition gives our
Company the opportunity to further expand our reach from direct-to-consumer to
direct-to-employer groups by highlighting a benefit which is increasingly
valuable in employee recruitment and retention. Additionally, our 350,000+
members have indicated a high level of interest in prescription drug programs.
With this acquisition, I anticipate IPM will immediately enhance our value to
our members, shareholders and business partners."
IPM's success is attributable to offering small to mid-sized employer groups
flexible funding options, personal service, consultative expertise, clinical
review programs and access to a nationwide network of retail pharmacies, all of
which enhances its client's ability to manage and budget their pharmacy benefits
costs.
Arthur M. Jones, Chairman of the Board, President and CEO of IPM said, "We are
delighted to become a part of the HealthExtras team. We share a common belief
that customer service and strong client relationships are the keys to success,
and we look forward to the many opportunities this acquisition will provide us
to serve individual consumers and small to mid-size employer groups."
ABOUT HEALTHEXTRAS
HealthExtras is a leading provider of health and disability programs. Through
its web site www.healthextras.com, employee benefit plans, and other direct
channels, HealthExtras offers individuals, small businesses and employer groups
customizable and affordable health and disability insurance. The Company has
strategic relationships with highly rated insurance underwriters, and its
marketing partners include the nation's largest financial institutions, along
with leading affinity groups, associations, and Internet companies.
Additionally, HealthExtras has a relationship with actor and advocate
Christopher Reeve to promote its programs. Founded in 1997, HealthExtras is
located in Rockville, Maryland and is publicly traded on the Nasdaq Exchange
under the symbol: HLEX.
ABOUT INTERNATIONAL PHARMACY MANAGEMENT
International Pharmacy Management, Inc. is a service-oriented pharmacy benefits
manager (PBM) focused on the unique needs and priorities of small to mid-sized
employer groups. The Company has an integrated mail order pharmacy, with a
nationwide network of retail pharmacies. IPM manages pharmacy benefits for its
self-insured clients, providing traditional pharmacy programs as well as
targeting niche markets such as hospices and workers' compensation programs. IPM
also offers both insured and capitated plans for managed care organizations and
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insurance carriers. Founded in 1995, IPM is located in Birmingham, Alabama, and
its web site is www.ipmdrug.com.
This press release may contain forward-looking information. The forward-looking
statements are made pursuant to the safe harbor provisions of the Private
Securities Litigation Act of 1995. Forward-looking statements may be
significantly impacted by certain risks and uncertainties described in
HealthExtras' filings with the Securities and Exchange Commission.
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