Aetna International to Increase Stake in Hong Kong.

Business/Insurance Editors

HONG KONG and HARTFORD, Conn.--(BUSINESS WIRE)--Dec. 20, 1999

Aetna International, a wholly owned subsidiary of Aetna Inc. (NYSE:AET), has increased its ownership stake in East Asia Aetna Insurance Company (Bermuda) Ltd. Aetna International has acquired an additional 11 percent ownership interest for approximately $38 million, bringing its equity ownership stake to 61 percent. In addition, Aetna International is participating in an investment vehicle that is acquiring the remaining 39 percent ownership interest from the Bank of East Asia.

In a related separate transaction, Aetna International also has sold its 50 percent ownership stake in Blue Cross (Asia Pacific) Insurance Ltd. to Bank of East Asia for approximately $9 million.

"By increasing our ownership stake, we are consolidating our holdings in this region and gaining greater flexibility to pursue our strategy of being the company of choice for financial security throughout Greater China," said Frederick C. Copeland Jr., president of Aetna International. "With the imminent launch of pension privatization in Hong Kong next year through the Mandatory Provident Fund scheme, Hong Kong is becoming increasingly attractive as a financial services market."

Established by the Bank of East Asia and Aetna International in 1984, East Asia Aetna is currently the fifth-largest insurer in Hong Kong, selling life and wealth accumulation products through more than 2,500 agents.

Aetna International also markets life insurance in Shanghai, China, through a joint venture with China Pacific Insurance Company. In addition, Aetna International remains the fourth-largest life insurer in Taiwan and recently was awarded the Quality Foreign Business Award as the country's leading foreign insurer.

Aetna International provides health, life and financial services products to more than 16 million people around the world. Aetna International operates businesses in 16 countries and serves more than 80 additional markets through Aetna Global Benefits and its network partners.

Aetna is a leading provider of health, retirement and financial services benefits. Through its three core businesses, Aetna U.S. Healthcare, Aetna Financial Services and Aetna International, the company provides nearly 47 million people worldwide with quality products, services and information to help them manage best what matters most: their health and financial well-being.

CAUTIONARY STATEMENT - Certain information in this press release is forward looking. That information is based on management's estimates, assumptions and projections, and is subject to significant uncertainties, many of which are beyond Aetna's and Aetna International's control. Important risk factors could cause future events to differ materially from those currently estimated by management. Those risk factors include, but are not limited to: adverse government regulation, including regulation by foreign authorities; the effect of interest rate changes on financing costs; the impact of significant changes in financial markets on the level of assets under management (and asset-based fees); and the effect of currency devaluation on Aetna International's earnings. For further discussion of important risk factors that may materially affect management's estimates, Aetna's results and the forward-looking statements herein, please see the risk factors contained in Aetna's Securities and Exchange Commission filings, which risk factors are incorporated herein by reference. You also should read those filings, particularly Aetna's 1998 Report on Form 10-K and Reports on Form 10-Q filed during 1999 for a discussion of Aetna's results of operations and financial condition.