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EXHIBIT 99.1
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eBenX, Inc.
605 North Highway 169
Suite LL
Minneapolis, MN 55441-6465
ph: 763-614-2000
[eBenX LOGO]
FOR IMMEDIATE RELEASE
EBENX TO ACQUIRE ARBOR
Combination Accelerates Growth and Leadership
in the Mid-Sized Employer Market
MINNEAPOLIS (August 29, 2000) - eBenX, Inc. (Nasdaq: EBNX) today announced that
it has signed a definitive agreement to acquire Arbor Administrative Services,
Inc. d/b/a Arbor Associates (www.arborassoc.com), a privately held, Web-based
benefits administrator and application service provider (ASP). Under the terms
of the proposed acquisition, Arbor shareholders will receive $17 million in cash
and 2,587,500 shares of eBenX common stock. The acquisition is expected to close
in September, 2000.
"The acquisition of Arbor accelerates our mid-market presence," said John Davis,
president and chief executive officer of eBenX. "In one shot, we add over
120,000 committed employee lives, deep domain expertise in benefits
administration, great mid-market broker relationships, and a strong and
satisfied mid-market customer base. Arbor is a great complement to our growing
business. They not only have the technology expertise, but more importantly, a
demonstrated track record of real growth, revenue and client retention. Just
like eBenX, Arbor is wholly-focused on executing its plan. With this
acquisition, we create a powerful platform for growth."
Jeffrey Rosenblum, chief executive officer of Arbor who will become president,
Mid-Market, for eBenX, said, "We are pleased to be joining the team at eBenX.
This combination creates a strong competitive position in the mid-sized employer
marketplace. Arbor has nearly 10 years of deep experience in benefits
administration and it is our fundamental understanding of the complexities and
challenges of benefits administration that has been key to our success. We are a
proven and tested leader in the field of Web-based benefits administration. We
are confident that our long-standing relationships with nationally-recognized
insurance brokers, excellent client retention record and strong management team
will be significant assets as we join with eBenX to capitalize on an exploding
market."
Mr. Davis said, "This is a smart strategic combination and, in addition, is
consistent with our financial plan. This transaction solidifies our position as
the definitive leader in our space. We
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believe only two or three companies will emerge as winners in this rapidly
evolving and competitive market. This combination helps assure that we'll be one
of those."
About Arbor
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Based in Philadelphia, Arbor provides benefits administration and related
Web-based services to 64 employers. Arbor has leveraged nearly 10 years of
experience in the development of its advanced Internet technology solutions.
Arbor offers one of the most functionally rich Web/IVR benefits administration
solutions available in the market today, ChoiceOne Link. Arbor provides full
service benefit outsourcing for mid-sized employers. It distributes its services
primarily through brokers and advisors including industry-leading brokers such
as Aon Corp., USI and Willis. Its clients include such innovative employers as
Yahoo!, Aventis, AMVESCAP (Aim and Invesco Mutual Funds), Bear Stearns, Catholic
Health Initiative (East), Rosenbluth International, Schreiber Foods and the
University of Pennsylvania Health System. In addition, Arbor currently provides
ChoiceOne Link, under ASP arrangements, to three high volume benefit
administrators.
About eBenX
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eBenX (http://www.ebenx.com) provides business-to-business e-commerce solutions
to employers, health plans and carriers for the purchase, administration and
payment of group health insurance. The eBenX group health insurance exchange
provides an end-to-end solution for all aspects of this process, from request
for proposal through premium payment. The eBenX Exchange encompasses the
assessment of health plans for employers, as well as a streamlined, web-based
channel for the quoting, rating and selection of new and renewal group health
insurance by employers and health plans. The enrollment capabilities of the
eBenX Exchange provide employees with the ability to make health plan choices
and enroll online. The eBenX Exchange includes Web-enabled, high volume
rules-based interfaces that allow employers and health plans to exchange
eligibility information throughout the benefit year, and to complete premium
billings and payments. The result is reduced administrative and medical costs
for employers, reduced administrative costs for health plans, and more choice,
convenience and improved service for employees and their dependents.
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Forward looking statements
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Other than historical information set forth herein, this announcement may
contain forward-looking statements that involve risks and uncertainties. Actual
results could be materially different from those discussed in this announcement.
Factors that could cause actual results to differ include, among others: eBenX's
limited operating history, loss of any material customer, failure of the
industry to accept eBenX services, industry competition, failure to establish
and maintain successful relationships with strategic partners, waning demand for
Internet and e-commerce solutions, inability to protect intellectual property,
and state, federal and local laws and regulations. Additional risks associated
with eBenX's business can be found in its recent Registration Statement on Form
S-1 and other periodic filings with the SEC.
CONTACTS:
Investors News Media
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Scott Halstead Susan Busch
eBenX eBenX
763.614.2104 763.614.2126
Lisa Baumgartner
Ruder-Finn
212.593.6352
