ABR Information Services announces marketing agreement with PacifiCare.

PALM HARBOR, Fla.--(BUSINESS WIRE)--May 28, 1996--ABR Information Services Inc. (NASDAQ:ABRX), the nation's largest COBRA compliance administrator, Tuesday announced a marketing agreement with PacifiCare of California, a subsidiary of PacifiCare Health Systems Inc. (PacifiCare), the country's ninth largest HMO.

The agreement will offer PacifiCare customers comprehensive COBRA compliance services.

Under the marketing agreement, PacifiCare will refer all COBRA services from its medium and large employer groups to ABR's wholly owned subsidiary, Total COBRA Services Inc. (TCS). In addition, PacifiCare and TCS will actively market to PacifiCare's customers.

"PacifiCare has received many requests from their clients for COBRA management services," said Bill Evans, vice president of TCS. He added: "They decided not to develop the function in-house because it was too complex and costly, and they wanted to focus on their core business. They chose TCS because of our long history in the administration of COBRA, our flexibility and responsiveness. It also helped that we provide COBRA services to some major accounts in the PacifiCare marketing area and to a number of their customers, including PacifiCare itself."

"This marketing agreement will provide ABR with another channel to reach customers," said James E. MacDougald, chairman and chief executive officer of ABR. He added, "PacifiCare wants to differentiate itself from the competition by providing value-added services and rise above the commodity mentally perceived in the industry."

"We are excited about teaming up with one of the largest HMO carriers in the U.S.," said Vincent Addonisio, senior vice president and chief financial officer of ABR. He added, "PacifiCare has over 2,000,000 covered members and is the ninth largest HMO in the U.S."

ABR Information Services Inc. is a leading provider of comprehensive benefits administration, compliance and information services to employers seeking to outsource their benefits administration functions. The company believes it is the leading provider of COBRA compliance services with respect to benefits provided to retirees and inactive employees, including retiree healthcare, disability, surviving dependents, family leave and severance benefits. Additionally, the company provides benefits administration services with respect to benefits provided to active employees, including enrollment, eligibility verification, qualified domestic relations order ("QDRO") administration, HMO consolidation and pension services. These services are offered on either an "a la carte" or a total outsourcing basis, allowing customers to outsource certain benefits administration tasks which they find too costly or burdensome to perform in-house, or to outsource the entire benefits administration function.

The company is headquartered in Palm Harbor, Fla., and provides information and support services to more than 20,000 employers, including Fortune 500 companies, insurance companies and other employers.

CONTACT: ABR Information Services Inc., Palm Harbor

Vincent Addonisio, Chief Financial Officer

813/785-2819