Meritain Health Acquires Weyco

Business Wire, August 17, 2006

BUFFALO, N.Y. -- Meritain Health, Inc., a division of health care services company Prodigy Health Group and a leading independent provider of health plan management services, today announced that it has acquired Weyco, Inc. Financial terms of the transaction were not disclosed.

The combination of Meritain Health and Weyco bring together two companies that are passionately dedicated to helping clients control the long term cost of health care by encouraging members to lead healthier lifestyles and by enabling members to become better health care consumers.

With the acquisition, Weyco will be able to maintain its leadership position in a rapidly changing health plan market, gain greater access to capital to fund technology improvements and better compete with major insurance carriers.

Elliot S. Cooperstone, CEO of Prodigy Health said, "The acquisition of Weyco expands our market position in the Michigan area through the addition of an outstanding staff that shares our commitment to high quality client service and to promoting positive behavior change through plan design and tools that encourage healthier living and more informed health care decisions. We are pleased to welcome the employees of Weyco to Meritain Health."

Under the agreement, Weyco, based in Okemos, Mich., will become a wholly owned subsidiary of Meritain Health, headquartered in Buffalo, N.Y. Weyco will maintain the company's presence in Okemos and the Weyco name will be kept for an extended transitional period.

Howard Weyers, President of Weyco said, "Rapidly changing markets created a great opportunity for us to advance to the next level with a venture of this type. The timing is ideal to join with a strong partner to invest in the consumer-driven healthcare arena. We are excited about this opportunity to ensure that what we've built over the years will not only be sustained, but will flourish well into the future."

Weyco gained national attention with the introduction of its tobacco-free workplace policy in 2005. The policy will remain in effect following the acquisition. Also committed to promoting healthier lifestyles, Meritain is introducing its Meritain for Life wellness program at its other locations later this year.

About Meritain Health

Meritain Health is one of the country's largest independent providers of services for self-funded health plans. Meritain Health serves over 500 self-funded clients nationally, with nearly 500,000 members in more than 30 major industries. The company provides plan administration, innovative wellness, medical management, disease management, network management, and cost management services. Meritain Health is also a pioneer and now the leading independent provider of Consumer Directed Health Plans. Meritain Health employs over 750 people, with regional offices in Baltimore, MD; Boston, MA; Canton, OH; Cleveland, OH; Columbus, OH; Evansville, IN; Houston, TX; Indianapolis, IN; Memphis, TN; St. Louis, MO; as well as the company headquarters in Buffalo, NY. http://www.meritain.com

About Prodigy Health Group

Prodigy Health Group is a health services holding company. Prodigy Health Group operating companies provide benefits management, total health management, provider network services and insurance services to self-funded employers, managed care companies and insurers. Prodigy Health companies serve over 3.5 million members across all industry sectors and Prodigy Health Group is continuing to pursue an aggressive growth strategy through synergistic health services acquisitions and organic growth. http://www.prodigyhealthgroup.com

About Weyco, Inc.

Howard Weyers founded Weyco in 1979. Today, the company is a recognized leader in helping businesses develop innovative health plans to increase profitability by improving employee well-being and productivity. Based in Okemos, Mich., Weyco provides self-funded medical, dental, vision, and short-term disability plans, in addition to core employee benefit plans and benefit management services. The company also is an agent for life, long-term disability, medical, dental, and vision insurance plans, as well as Flexible Spending Accounts and Health Savings Accounts. http://www.weyco.com/web