Affiliated Delta Dental Companies Report 1 Million New Enrollees Added in 2007

Business Wire, May 21, 2007

Strong Sales Continue Growth Trend for Nonprofit National Dental Carrier

SAN FRANCISCO -- The holding company system that includes Delta Dental of California, Pennsylvania and affiliates in a total of 16 states and the District of Columbia announced today that more than one million new enrollees will join in 2007.

The nonprofit enterprise, which operates under a single, shared management structure led by President and CEO Gary D. Radine, expects to add up to 1.1 million enrollees in 2007, based on new sales in 2006, combined with first quarter sales in 2007. With 98 percent retention of last year's enrollment, the growth means the affiliated companies now cover nearly 22 million Americans in an array of commercial and government-sponsored dental programs.

Consolidated gross revenues for the non-profit enterprise in 2006 are estimated at $5.1 billion, representing a $400 million gain in revenues over the previous year.

"As a nonprofit healthcare system, these dollars represent an increasing amount of preventive and restorative patient care that we are purchasing on behalf of our growing enrollee population," said Radine. "We need to acknowledge the tens of thousands of dentists around the country who are our partners in success, and in improving public oral health."

Breaking enrollment gains down by region, Delta Dental of California expects to add about 430,000 new enrollees in 2007, many with multi-state employers whose employees might reside anywhere in the country, not just in California. Delta Dental Insurance Company, meanwhile, an affiliate administering Delta Dental programs in 10 states including Florida, Georgia and Texas, expects to add another 345,000 new enrollees. Delta Dental of Pennsylvania, which administers dental benefits in Delaware, Maryland, New York, West Virginia and the District of Columbia, will add an estimated 270,000 new enrollees.

In addition to commercial program gains, Delta Dental added 75,000 new enrollees as administrator for the TRICARE Retiree Dental Program (TRDP), the nation's largest single group voluntary dental program now serving nearly 1 million uniformed service retirees and their families. Another non-commercial, national program, the Delta Dental/AARP dental plan, added 53,000 new members and dependents, bringing total enrollment in that program up to nearly 200,000.

AM Best recently re-affirmed its "A-" (excellent) financial strength rating for the overall holding company system, an "A-" rating for Delta California and Delta Dental Insurance Company and a "B " (very good) for Delta Pennsylvania and its affiliates.

Delta Dental of California, Pennsylvania and its affiliated companies within the holding company system, along with Delta Dental of New York, are all part of the Delta Dental Plans Association (DDPA), based in Oak Brook, Ill. DDPA consists of 39 Delta Dental member companies licensed in all 50 states. The association collectively covers about 48 million of the 164 million people nationwide with private dental insurance, making it by far the largest national system of dental plans.