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Aetna Chairman and CEO to Sell Shares under 10b5-1 Plan.


HARTFORD, Conn. -- Aetna Inc. (NYSE NYSE

See: New York Stock Exchange
: AET AET Aetna, Inc.
AET After Extra Time
AET Actual Evapotranspiration
AET Alliance for Environmental Technology
AET Alpha-Ethyltryptamine
AET Applied Extrusion Technologies, Inc.
) announced today that certain trusts established by John W. Rowe, M.D., the company's chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , intend to exercise, beginning in February 2006, a portion of the employee stock options granted to Dr. Rowe. The shares will be sold in accordance with Rule 10b5-1 under the Securities and Exchange Act of 1934, and the company's policies with respect to insider sales.

Rule 10b5-1 permits officers and directors of public companies to adopt predetermined pre·de·ter·mine  
v. pre·de·ter·mined, pre·de·ter·min·ing, pre·de·ter·mines

v.tr.
1. To determine, decide, or establish in advance:
 plans for selling specified amounts of stock. The plans may be entered into when the director or officer is not in possession of material, nonpublic information Nonpublic information

Information about a company that is not known by the general public, which will have a definite impact on the stock price when released. See: Insider trading.
 and may be used to gradually diversify investment portfolios over a period of time.

Under prior 10b5-1 plans adopted beginning in September 2003, Dr. Rowe began systematically to exercise stock options and sell shares as part of his personal financial planning Financial planning

Evaluating the investing and financing options available to a firm. Planning includes attempting to make optimal decisions, projecting the consequences of these decisions for the firm in the form of a financial plan, and then comparing future performance against
. Dr. Rowe also previously established grantor-retained annuity trusts ("GRATs") and transferred Aetna stock options into the trusts. This is a common financial and tax strategy used by executives and allowed by the IRS An abbreviation for the Internal Revenue Service, a federal agency charged with the responsibility of administering and enforcing internal revenue laws. . The GRATs are now entering into 10b5-1 plans to exercise additional stock options and sell those shares.

The total number of Aetna options to be exercised and shares to be sold under the new 10b5-1 plans, beginning in February 2006, is approximately 450,000, or about 11.5 percent of Dr. Rowe's current Aetna holdings. As Dr. Rowe has received new stock options in recent years, exercises and sales under Rule 10b5-1 plans have not resulted in a significant reduction of his overall share count.

As one of the nation's leading providers of health care, dental, pharmacy, group life, disability and long-term care benefits, Aetna puts information and helpful resources to work for its approximately 14.435 million medical members, 12.976 million dental members, 9.117 million pharmacy members and 13.662 million group insurance members to help them make better informed decisions about their health care and protect their finances against health-related risks. Aetna provides easy access to cost-effective health care through a nationwide network of more than 684,000 health care professionals, including over 405,000 primary care and specialist doctors and 4,135 hospitals. For more information, please visit www.aetna.com. (Figures as of June 30, 2005)
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Copyright 2005, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Publication:Business Wire
Geographic Code:1USA
Date:Oct 7, 2005
Words:382
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