February 20, 1998 CareWorks Acquires United Healthcare's Ohio Workers' Compensation Managed Care Business

(DUBLIN, OH) -- CareWorks announced today its acquisition of the Ohio workers' compensation managed care business unit of MetraComp, Inc., a United Healthcare Company which provides managed care services for 5,000 Ohio employers. Both CareWorks and MetraComp are certified managed care organizations (MCO), operating under the Ohio Bureau of Workers' Compensation (BWC) Health Partnership Program (HPP) established in March 1997.

The BWC has today approved the transaction and will be formally notifying the employers of the transfer of services. Effective March 23, 1998, CareWorks will begin providing medical management services for all of MetraComp's 5,000 customers.

"We are excited about the opportunity to demonstrate CareWorks' commitment to providing the best managed care services to MetraComp's clients," said William W. Pfeiffer, CareWorks' President and CEO. "We are firmly committed to making this a smooth transition of services, and we are already working closely with MetraComp and the BWC to insure we have all the necessary case information prior to the effective date," added Pfeiffer.

Jim Braun, President of MetraComp, Inc. characterized the sale as a strategic refocus of MetraComp's resources. "We are confident that our clients will receive the highest quality service and attention to their MCO needs as new CareWorks clients. Our decision to discontinue participation in HPP will in no way affect United Healthcare's status as a dominant player in the Ohio health care market, fully committed to its commercial and Medicare customers." said Braun.

CareWorks provides medical management, vocational rehabilitation case management and self insured claim administration services to more than 39,000 employers nationwide. It is the largest MCO in the Ohio HPP program.