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News
Contact: Nancy Macenko
Olsten Corporation
(516) 844-7034
olsten.comms@olsten.com
www.olsten.com
FOR IMMEDIATE RELEASE
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OLSTEN SIGNS SETTLEMENT WITH FEDERAL GOVERNMENT
Melville, NY, July 19, 1999 -- Olsten Corporation (NYSE: OLS) announced today
that it has signed the final civil, administrative and criminal settlement
agreements reached in principle with the Federal government earlier this year.
On March 30, 1999, Olsten announced that it had reached a proposed
agreement in principal with the U.S. Department of Justice and the Office of the
Inspector General of the U.S. Department of Health and Human Services to settle
all civil, administrative and criminal aspects of the investigation into certain
Olsten transactions with Columbia/HCA and the investigation into Olsten's home
office cost reports. The only remaining steps are the formal execution and entry
of pleas in three federal district courts (and the approval by those courts of
the proposed criminal fines and penalties) and the payment by Olsten of the $61
million cash settlement.
In a statement released from the Company's headquarters on Long Island,
Olsten President and CEO Edward A. Blechschmidt called the signing "a welcomed
conclusion of a difficult period in our company's history."
"We have worked very hard to put this matter behind us," Blechschmidt
noted. "Now with today's signing, we are able to focus without distractions on
strengthening the Olsten brand and rebuilding shareholder value."
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175 Broadhollow Road, Melville, New York 11747-8905
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Olsten Corporation, with 1,500 offices on three continents, is a world
leader in staffing services, a significant provider of information technology
services and North America's largest provider of home health care and related
services. The Company operates more than 1,000 staffing offices - providing
staffing solutions and assignment employees to business, industry and government
- - in North America, Latin America and Europe under Olsten Staffing Services and
related brands. Olsten's information technology division, IMI Systems, provides
design, programming and maintenance of computer systems, including focused
solutions for applications management, e- commerce, quality assurance and
enterprise support services to clients in North America and Western Europe.
Olsten Health Services, with more than 400 offices in the United States and
Canada, provides health care Network Services and caregivers for home health
care, home infusion and other therapies, and marketing and distribution
solutions for pharmaceutical, biotechnology and medical device firms.
In 1998, Olsten Corporation achieved revenues of $4.6 billion and
employed approximately 700,000 people serving approximately 600,000
client/patient accounts.
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Information contained in this news release, other than historical information,
should be considered forward-looking, and is subject to various risk factors and
uncertainties. For instance, the Company's strategies and operations involve
risks of competition, changing market conditions, changes in laws and
regulations affecting our industries and numerous other factors discussed in
this release and in the Company's filings with the Securities and Exchange
Commission. Accordingly, actual results may differ materially from those in any
forward-looking statements.