Age Wave Health Services signs major contracts with healthcare organizations; by offering a unique combination of expertise on aging, health and marketing, Age Wave Health Services sees its revenues soar.

EMERYVILLE, Calif.--(BW HealthWire)--May 12, 1997--Age Wave Health Services, Inc., (AWHS) President and Chief Executive Officer Bart Penfold announced today that -- in the first four months of 1997 -- the company signed contracts totaling more than $14 million with a number of Blue Cross and Blue Shield plans across the nation to help these health plans attract and retain the Medicare-eligible population.

The primary focus of most of these contracts is the development of integrated marketing communication campaigns aimed at growing the membership of Medicare HMOs or supplement plans.

These recent contracts, combined with AWHS's contracts with other health care organizations, which include both health plans and pharmaceutical companies, increase AWHS's projected gross revenues for 1997 by 300 percent over 1996 revenues, according to Penfold.

This phenomenal growth stems largely from the creation of AWHS's marketing division in May 1996, called Age Wave IMPACT. As the primary operating division of AWHS, Age Wave IMPACT has joined Age Wave's decade-long leadership in the healthcare implications of aging with some of the best direct marketing and advertising talent in America.

Specifically, Age Wave IMPACT offers the combined expertise of Age Wave Health Services' founder, author and gerontologist Ken Dychtwald, Ph.D. -- the nation's preeminent authority on the aging of America and its marketplace implications -- and experienced talent hired away from leading consulting, advertising and direct marketing firms, including Ketchum Communications, Ogilvy & Mather Direct, FCB Direct, the Alliance for Aging Research, Krames Communications, the Boston Consulting Group and McKinsey and Company. Age Wave IMPACT creates a range of programs for its clients that are tailored to specific segments of the older population. These can include direct response advertising, direct mail, telemarketing, new sales process and meaningful customer service and health education programs.

"All seniors are not alike, although they are often treated as one group by companies marketing to them," explained William Burkart, executive vice president of AWHS and president of Age Wave IMPACT. "They vary just as much if not more than those under 65. At Age Wave Health Services, we don't approach this population as one mass market, but rather as many different markets with varying wants and needs. Using a proprietary senior segmentation model, we help healthcare organizations understand their diverse senior populations and tailor their communication, products and services accordingly. This builds the foundation for long-term and mutually satisfying relationships between healthcare organizations and mature consumers."

Age Wave IMPACT is the first of many planned AWHS divisions and services that focus on maximizing the lifetime value of healthcare organizations' relationships with mature consumers. AWHS defines itself as a "senior-focused relationship management company" providing a continuum of fully integrated acquisition, retention and management products and services that enable healthcare organizations to develop and maintain successful relationships with older consumers.

The AWHS management team reflects the unique combination of expertise in marketing, aging and healthcare embodied by the company. The team includes Bart Penfold, president and chief executive officer; William J. Burkart, executive vice president; and Bruce Clark, Dr.PH, senior vice president. Penfold previously served as chief operating officer for Age Wave, Inc., where he was responsible for implementing the new corporate structure and business plans for the family of Age Wave companies, including Age Wave Health Services. Burkart joined AWHS from the Customer Development Corporation, the second largest independent direct response agency, where he served as president. Clark, a well-known specialist on the business implications of aging in the healthcare industry and a co-founder of Age Wave, Inc., has held healthcare management positions with St. Helena Hospital, the National Institutes for Health and the Healthcare Forum.

AWHS is a fast-growing, privately held company located at 2000 Powell Street, 11th Floor, Emeryville, Calif. 94608. By the end of 1997, its staff is expected to number 60. The phone number is [phone], the fax number is [phone] and the e-mail address for general information is [e-mail]. -0-

Note to Editors/Reporters: You may find the following AWHS executives to be valuable resources and spokespeople on the topics listed below.

Bart Penfold, president of AWHS, is an industry expert on the changing roles and structures of businesses within the healthcare industry. He can be reached directly at [phone].

William Burkart, executive vice president of AWHS and president of Age Wave IMPACT, is an industry expert on direct marketing in the healthcare industry and segmentation models for marketers with the 50+ population. He can be reached directly at [phone].

Bruce Clark, Dr. PH, senior vice president of AWHS and a founding member of Age Wave, Inc., is an industry expert on the implications of the aging population with businesses and senior-sensitivity issues with employees. He can be reached directly at [phone].

CONTACT: White & Company

Molly Prescott, 510/654-7287

Laura Dille, 415/274-8111