HEALTHEXTRAS HealthExtras, Inc.
2273 Research Boulevard
Rockville, MD 20850
Telephone: 301.548.2900
Facsimile: 301.548.2992
For Immediate Release
- --------------------- Contact:
KCSA Worldwide Public Relations
Todd Fromer / Elizabeth Mwangi
212-896-1215 / 212-896-1242
todd@kcsa.com / emwangi@kcsa.com
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HEALTHEXTRAS ANNOUNCES ACQUISITION OF PHARMACY BENEFIT
MANAGEMENT COMPANY
ROCKVILLE, MD, DECEMBER 16, 2002 -- HEALTHEXTRAS, INC. (NASDAQ: HLEX), a
pharmacy benefit management company, today announced the acquisition of
Pharmacy Network National Corporation ("PNNC") of Raleigh, North Carolina. PNNC
is a provider of pharmacy benefit management services to a diverse client base
- with a significant geographic concentration in the Carolinas and Tennessee.
"The acquisition of PNNC is another important step for HealthExtras as it
continues to focus on the advantages of local market differentiation," stated
David T. Blair, Chief Executive Officer of HealthExtras. "We expect the
transaction to be accretive on a consolidated basis and it should allow the
Company to establish another geographic base from which to grow enrollment and
revenues."
PNNC has accelerated the development of its business over the past several
years by providing high quality account management services, flexible benefit
and network design options and innovative approaches to meeting the challenges
of increasing pharmaceutical costs and utilization.
Andrew Barrett, President of PNNC said, "We believe this transaction with
HealthExtras will allow us to continue to grow our business while providing our
clients with the same high level of service by the same team from our Raleigh
office. Also, this transaction will provide our existing clients with broader
clinical programs and enhanced electronic reporting and management tools."
On a consolidated basis, HealthExtras revenues should approach $400 million
for 2003. Once fully integrated, PNNC is expected to contribute $.10 to $.12
per share on a pre-tax basis to the Company's annual earnings. The timing and
extent of PNNC's contributions to consolidated revenues and earnings for 2003
will be fully addressed in the Company's next quarterly conference call. The
details of the $21 million cash transaction will be described in the Company's
required filings with the Securities and Exchange Commission.
ABOUT HEALTHEXTRAS, INC. (WWW.HEALTHEXTRAS.COM)
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HealthExtras, Inc. is a diversified provider of pharmacy, health and disability
benefits. The Company currently provides benefits to over 2 million members and
the Company's clients include managed care organizations, large employer
groups, unions, government agencies and individual consumers.
The Company's integrated pharmacy benefit management services include: claims
processing, mail order services, benefit design consultation, drug utilization
review, formulary management and drug data analysis services. Additionally, the
Company operates a national retail pharmacy network with over 53,000
participating pharmacies.
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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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