EXHIBIT (a)(1)(I) EXAMPLE OF 'MODIFIED DUTCH AUCTION' PROCESS The following illustrates a possible outcome of the 'Modified Dutch Auction' tender offer process: PRICE SHARES TENDERED AT THAT PRICE CUMULATIVE TOTAL TENDERED AT: BY ALL SHAREHOLDERS: OF SHARES TENDERED - ------------ -------------------- ------------------ $15.00 30,000 30,000 $15.25 15,000 45,000 $15.50 15,000 60,000 $15.75 20,000 80,000 $16.00 20,000 100,000 ALL SHARES BELOW WOULD NOT BE PURCHASED. $16.25 15,000 115,000 $16.50 10,000 125,000 $16.75 5,000 130,000 Since Independence Holding Company intends to purchase a minimum of 100,000 shares, in this example all shares tendered at prices of $15.00, $15.25, $15.50, $15.75 and $16.00 would ALL receive $16.00 per share. Registered shareholders will not pay any fees or brokerage commissions. Other shareholders are urged to consult with their broker or bank to determine whether transaction costs are applicable. Using this example, any shares tendered at $16.25, $16.50, and $16.75 would NOT be purchased, because 100,000 shares would have been tendered at lower prices. Note: This is only an example of the potential operation of the 'Modified Dutch Auction' process under certain hypothetical circumstances. The actual results of the offer will depend on the number of shares tendered and the prices specified by tendering shareholders. The 'Modified Dutch Auction' process is described in detail in Independence Holding Company's Offer to Purchase dated July 26, 2001, of which this example is a part. Shareholders should carefully read the entire Offer to Purchase, which contains this and other important information, before deciding whether to tender shares.