HSI selects Dailey & Associates as its advertising agency

Business Wire, June 12, 1996

WOODLAND HILLS, Calif.; PUEBLO, Colo.--(BUSINESS WIRE)--June 12, 1996--Health Systems International, Inc., (NYSE:HQ)(HSI) today announced the selection of Dailey & Associates as the advertising agency of record for its operating subsidiaries, Health Net and QualMed, according to Jack McDonald, senior vice president of marketing for Health Systems International.

"Our selection of one agency to handle all our accounts is indicative of our strategic decision to create a synergy between Health Systems and its subsidiaries, Health Net and QualMed," said McDonald. "We are working together to build strong name recognition for our products and the company's unified effort to provide quality health care."

Health Systems, one of the largest providers of managed health care services, initiated an agency review in March. Health Systems' agency of record for the past six years was Rogge Effler & Partners (formerly Lord Dentsu & Partners), based in Los Angeles. The accounts include all the commercial and Medicare Risk plans offered by Health Net and QualMed in the nine states in which HSI operates.

"We are looking forward to a strong fall advertising campaign and the launch of several new products," said McDonald.

Health Systems International is one of the largest health maintenance organizations (HMOs) in the United States. It serves more than 1.9 million full-risk HMO and Administrative Services Only (ASO) members in nine states: California, Colorado, Connecticut, Idaho, New Jersey, New Mexico, Pennsylvania, Oregon and Washington. It also owns Preferred Health Network Inc. (PHN), a preferred provider organization (PPO) network with 4.8 million members in 36 states. For five years in a row, HSI or QualMed, Inc., a predecessor company to HSI, has been included on Fortune Magazine's list of America's 100 fastest growing companies.

CONTACT: Nelson Communications Group

Janice M. Hayward, 619/687-7000