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
mcoleman@healthextras.com
Contact: Arthur M. Jones
Chairman, President, CEO
205-795-7220
ajones@ipmdrug.com
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
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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
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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
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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