Conseco to Acquire Long-term Care Distributor From Fortis; Leading Long-term Care Insurance Provider Strengthens Distribution Through Acquisition.

Business Editors

CARMEL, Ind.--(BUSINESS WIRE)--April 17, 2000

Conseco, Inc. (NYSE:CNC) announced today that it has signed an agreement to acquire the Associated California State Insurance Agencies, Inc. and its sister company, Ardiel Insurance Service, Inc. (together, "ACSIA"), from Fortis, Inc.

ACSIA and Conseco have a long-standing relationship in the sale of long-term care insurance. The acquisition should strengthen the businesses of both companies. Currently the third largest long-term care career agency organization in the United States, ACSIA creates additional distribution strength for Conseco, a leading issuer of long-term care insurance. As of the end of 1999, ACSIA had 25 sales offices supporting 260 agents nationwide.

The acquisition is subject to customary conditions and is expected to close within 60 days. The terms of the transaction were not announced.

"ACSIA's focus and experience in the LTC market coupled with its nationwide presence will strengthen Conseco's current leadership position in this important and growing market," said Liz Georgakopoulos, president of Conseco's Supplemental Health division. "We are also excited about exploring ways to leverage ACSIA's success with other senior market products."

Bart Kosten, CEO of ACSIA, agreed. "Being able to partner with the market leader and leverage Conseco's emerging brand will be a great asset to ACSIA and our agents," said Kosten.

The move is another step in the implementation of Conseco's organic growth strategy. "Strategically, this acquisition fits right in with what we are trying to accomplish as an organization," noted Ed Berube, president of the Conseco Insurance Group. "Being able to add such a highly coveted distributor to Conseco further enhances our position as the market leader in long-term care and the senior marketplace."

Headquartered in Carmel, Ind., Conseco is one of middle America's leading sources for insurance, investment and lending products. Through its subsidiaries and a nationwide network of distributors, Conseco helps 13 million customers step up to a better, more secure future.

Fortis, Inc. is a financial services company that, through its operating companies and affiliates, provides specialty insurance and investment products to businesses, associations, financial service organizations and individuals in the U.S. The company owns or manages approximately $24 billion in assets. Fortis, Inc. is part of the international Fortis group, which operates in the fields of insurance, banking and investments, with assets in excess of $400 billion. Fortis' listed companies are Fortis (B) of Beligum and Fortis (NL) of the Netherlands.