HARTFORD, Conn., August 6, 1999 — Aetna (NYSE: ΑET) today announced that it has
completed its acquisition of Prudential HealthCare for approximately $1 billion, making
Aetna the country’s largest provider of health benefits, with more than 21 million
members, and adding to its position as the nation’s leading managed care company,
with more than 18 million managed care members. The company also will be a leading
provider of dental benefits, with approximately 16 million members."We are pleased that we have completed the acquisition of
Prudential HealthCare, which we expect to be accretive to earnings in 1999," said
Richard L. Huber, chairman and CEO of Aetna. "We now will be able to provide our
members with a wider choice of physicians, and extend to Prudential HealthCare
members the benefits of our industry-leading disease management and preventive programs
designed to help keep them healthy."
"We now will begin implementing our integration plan,
which is designed to emphasize continuity for employers, physicians and members, while
preserving and, in some instances, improving service levels," said Michael J.
Cardillo, president of Aetna U.S. Healthcare. "As previously announced, we will
retain the Prudential HealthCare national service centers in Cranbury, N.J.; Jacksonville,
Fla.; Sugarland, Texas; and Los Angeles, Calif.; as well as dental service centers in
Albany, N.Y.; Jacksonville, Fla.; and Simi Valley, Calif."
Mr. Cardillo noted that during the integration period, the
company will introduce a new transition logo ("Prudential HealthCare, a member
company of Aetna U.S. Healthcare").
Aetna is a leading provider of health and retirement
benefit plans and financial services, with three core businesses: Aetna U.S. Healthcare,
Aetna Retirement Services and Aetna International. The company provides more than 40
million people worldwide with quality products, services and information that help them
manage what matters most: their health and financial well-being.
CAUTIONARY STATEMENT – Certain information in this
press release is forward looking including, but not limited to, statements concerning the
Prudential HealthCare acquisition. That information is based on management’s
estimates, assumptions and projections, and is subject to significant uncertainties, many
of which are beyond the control of the company. Important risk factors could cause
Aetna’s actual future results and other future events to differ materially from those
currently estimated by management. Those risk factors include, but are not limited to: the
ability to successfully integrate the Prudential HealthCare transaction on a timely basis
and in a cost-efficient manner (which also is affected by the adequacy of certain
contractual protections, and the ability to eliminate duplicative administrative functions
and integrate management information systems); adverse government regulation;
unanticipated increases in medical costs, including pharmacy costs and those resulting
from changes in contracting or recontracting with providers; adverse pricing actions by
government payors; changes in size and product mix of membership in key markets; ability
of the company and its external relationships to resolve Year 2000 issues; the effect of
interest rate changes on financing costs; and litigation. For further discussion of
important risk factors that may materially affect Aetna’s results and the
forward-looking statements herein, please see the risk factors contained in Aetna’s
Securities and Exchange Commission filings, which risk factors are incorporated herein by
reference. You also should read those filings, particularly Aetna’s 1998 Report on
Form 10-K and Report on Form 10-Q for the quarter ended June 30, 1999 for a discussion of
Aetna’s results of operations and financial condition.
Information about Aetna earnings is available at http://www.aetna.com.
