Premera Blue Cross Releases 39-Page Document Describing Its Rationale for Becoming a Public Company

Business Wire, Oct 18, 2002

Business Editors

MOUNTLAKE TERRACE, Wash.--(BUSINESS WIRE)--Oct. 18, 2002

Following initial public forums across Washington sponsored by the state officials to hear from the public early in the review process, Premera Blue Cross is releasing to the public a 39-page document filed Sept. 27 with state officials, describing Premera's rationale and strategy for becoming a publicly held company.

"During the forums, we heard many good questions about the company's rationale for becoming a public company," said Brereton (Gubby) Barlow, Premera CEO. The Washington Insurance Commissioner also has received requests for documents Premera filed with state regulators.

"Throughout this process, we've consistently said we want the public to have as much information as possible to understand our reasons for seeking capital as a public company. The rationale-and-strategy document, filed with state officials and now being made public, provides further detail on the reasons for conversion," Barlow noted.

The document, "Exhibit E-7," includes a 39-page narrative section, followed by a section containing confidential and proprietary financial projections which are not being made public. The financial projections are not being released publicly because doing so could affect Premera's ability to compete in its markets.

The entire document is available for in-depth review by state officials from Washington, Oregon and Alaska, as well as experts the states are hiring in areas of investment banking, accounting, and actuarial analysis.

The publicly available portion of Premera's strategy and rationale document is available on Premera's web site at www.premera.com\newsroom\conversion_resources.

Premera Blue Cross is part of the Premera family of companies. The Premera family of companies is headquartered in Mountlake Terrace, Washington, with operations in Seattle and Spokane, Washington; Portland and Bend, Oregon; and Anchorage, Alaska. The Premera companies employ about 3,000 people and provide health care coverage and related services to 1.4 million subscribers and their families in Washington, Oregon and Alaska. Premera Blue Cross and its predecessors have operated in Washington since 1933, and in Alaska since 1957. An Oregon affiliate, LifeWise Health Plan of Oregon, joined the Premera family of companies in 1994.