For Release Immediate
Contacts (News Media) Mark Lubbers, EVP, External Relations 317.817.4418
(Investors) Tammy Hill, SVP, Investor Relations 317.817.2893
An open memo to Conseco shareholders and other interested parties
Indianapolis, Ind.: Sept. 29, 2000 - Once again, recent on-line "news"
reports about Conseco (CNC: NYSE) have included significant factual inaccuracies
and analytical errors. Two examples of these errors are so extreme as to warrant
correction. First, a recent report took cash flow estimates for 2000 through
2003 filed in our recent 8-K and reduced those amounts for tax payments which
had already been deducted. Second, the same report assumed that those cash flow
amounts were the same as pre-tax GAAP earnings. By combining those two errors,
the report concluded that Conseco would not report meaningful GAAP income until
2002. No accurate conclusions could rest on these two errors.
New management of Conseco has provided no guidance on future earnings.
Conseco believes that the vast majority of the business and financial
news media is reporting carefully and accurately about our progress. We continue
to invite journalists and analysts to confirm "news" and analysis with the
company.
Additionally, we reiterate our concern that all parties consider
carefully the source of news and analysis on Conseco. We expect this situation
to continue for as long as substantial economic interests exist in the
marketplace that would prefer the perception of distress.
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World Wide Web http://www.conseco.com
Investor Hotline 800.4.CONSECO
Fax-on-Demand 800.344.6452
Note on forward-looking statements: All statements, trend analyses and other
information contained in this release and elsewhere (such as in filings by
Conseco with the Securities and Exchange Commission, press releases,
presentations by Conseco or its management or oral statements) relative to
markets for Conseco's products and trends in Conseco's operations or financial
results, as well as other statements including words such as "anticipate,"
"believe," "plan," "estimate," "expect," "intend," "should," "could," "goal,"
"target," "on track," "comfortable with," "optimistic" and other similar
expressions, constitute forward-looking statements under the Private Securities
Litigation Reform Act of 1995. These forward-looking statements are subject to
known and unknown risks, uncertainties and other factors which may cause actual
results to be materially different from those contemplated by the
forward-looking statements. Such factors include, among other things: (1)
general economic conditions and other factors, including prevailing interest
rate levels, stock and credit market performance and health care inflation,
which may affect (among other things) Conseco's ability to sell its products,
its ability to make loans and access capital resources and the costs associated
therewith, the market value of Conseco's investments, the lapse rate and
profitability of policies, and the level of defaults and prepayments of loans
made by Conseco; (2) Conseco's ability to achieve anticipated synergies and
levels of operational efficiencies; (3) customer response to new products,
distribution channels and marketing initiatives; (4) mortality, morbidity, usage
of health care services and other factors which may affect the profitability of
Conseco's insurance products; (5) performance of our investments; (6) changes in
the Federal income tax laws and regulations which may affect the relative tax
advantages of some of Conseco's products; (7) increasing competition in the sale
of insurance and annuities and in the finance business; (8) regulatory changes
or actions, including those relating to regulation of financial services
affecting (among other things) bank sales and underwriting of insurance
products, regulation of the sale, underwriting and pricing of products, and
health care regulation affecting health insurance products; (9) the outcome of
Conseco's efforts to sell assets and reduce, refinance or modify indebtedness
and the availability and cost of capital in connection with this process; (10)
actions by rating agencies and the effects of past or future actions by these
agencies on Conseco's business; and (11) the risk factors or uncertainties
listed from time to time in Conseco's filings with the Securities and Exchange
Commission.
