WPPN Acquires Health Care Network (HCN) as of 7/01/02

Wisconsin Preferred Provider Networks, (WPPN) announced today that it is expanding its Wisconsin presence by signing an agreement to acquire Health Care Network of Wisconsin (HCN). Bruce Lefco, President of WPPN, and Jim Wrocklage, CEO of HCN, jointly confirmed that their organizations have signed an agreement for the acquisition of HCN by WPPN. The acquisition will close June 30, 2002. This will allow the interim period for planning of all necessary transitional activities. Terms of the agreement were not released.

"Because of HCN's significant presence in southeastern Wisconsin and WPPN's major presence throughout the rest of the state, the acquisition will increase WPPN's Wisconsin base to over 900,000 lives creating the largest block of healthcare business in the state of Wisconsin", stated Lefco. WPPN and HCN clients include a majority of the insurance companies, third party administrators, and self-administered groups doing business in Wisconsin. The combined WPPN/HCN will process over 5 million claims annually, totaling over $1 billion in hospital, physician and ancillary services and includes over 125 hospitals and 15,000 provider locations.

Wrocklage said, "Although we have operated effectively under our existing administrative relationship with Seabury & Smith, we believe the administrative efficiency of our combined blocks of business will allow more services and enhanced technology to be offered to the community. We could not gain the advantage of critical mass by continuing to outsource administrative services."

Craig Reynolds of Briggs & Stratton, Corp. and President of HCN said, "Aligning HCN with the new and proprietary advanced healthcare solutions of WPPN is a natural extension of HCN's organizational mission." Founded in 1986 by several large Milwaukee area employers, HCN's purpose has been "to arrange for and otherwise encourage programs and activities which are designed to promote access to quality care in the most appropriate setting, and contain the increase in costs of health care." Reynolds further stated, "the sale proceeds will be used to fund future healthcare related projects and programs which benefit the community as a whole separate and distinct from that of a preferred provider network. In pursuit of this, HCN will change its current Wisconsin non-stock corporate status to that of a 501 (c) (3) foundation.

WPPN was founded in De Pere, Wisconsin in 1989. In 1996 WPPN affiliated with New York-based MultiPlan, the nations largest PPO. Mark Tabak, vice chairman of Multiplan stated, "Since MultiPlan's acquisition of WPPN, the company has functioned, and will continue to function as an independent company. Our strategy is to continue to acquire other companies that will allow us to take advantage of the special processing and Active Health technologies that WPPN has developed. Active Health was developed to provide patient safety and improve quality of care. Bruce Lefco has been the president and CEO of WPPN since 1996 and will continue as president and CEO of the new organization. Jim Wrocklage will join the new entity as vice president. His primary WPPN responsibility will be to expand employer and coalition relationships throughout the state. He will also function as the Executive Director of the new HCN foundation.