Devon Health and Group Health Incorporated (GHI) Announce Strategic Alliance.

Devon Health to Serve as GHI's Exclusive Marketing Arm for Out-of-State TPAs and Self-Insured Employers

KING OF PRUSSIA, Pa. -- Devon Health Services, Inc., a National Healthcare Cost Management company and the Northeast's most extensive Preferred Provider Organization (PPO), has announced a strategic alliance with Group Health Incorporated (GHI), a leading New York State-based health insurer offering a varied portfolio of self-insured and fully-insured products.

GHI provides health insurance coverage to businesses headquartered in New York State. Under this new arrangement, Devon Health will be GHI's exclusive marketing arm, targeting third-party administrators (TPAs) and self-insured employers based outside of New York State that have membership in the New York region. Devon Health works with more than 150 TPAs nationwide, many of which have membership located within GHI's service area. The alliance will offer these organizations access to GHI's extensive network of providers in New York and the surrounding states.

"GHI is one of the preeminent regional health insurers," says Charles Falcone, president of Devon Health. "We have worked closely with GHI in the past, and are excited to enhance our relationship with this elite corporation. Their confidence in our marketing and network capabilities speaks volumes about our regional and national growth. We are proud to bring our TPA clients further access to the GHI network, and look forward to achieving success with all parties."

"We are excited about this opportunity to expand our relationship with Devon Health," says George Babitsch, GHI's senior vice president for sales and account management. "The past two years have seen growth of nearly three hundred percent in the number of individuals served by GHI's network leasing arrangements - thanks to our large physician and hospital networks and cost-effective rates. We feel that aligning with Devon Health will enable us to build on this momentum, expanding our sales territory so we can more fully serve the regional self-insured market."

Background on Devon Health Services, Inc.

Devon Health Services, Inc. (www.devonhealth.com) is a National Healthcare Cost Management Company founded by John A. Bennett, M.D., an emergency room physician, in 1991. Since its inception, Devon Health has been committed to providing affordable healthcare solutions designed to lower costs. Devon Health offers a suite of products to complete healthcare benefit packages, including a National Preferred Provider (PPO) Network, Claims Settlement, and Pharmacy Benefit Management. The company is headquartered in King of Prussia, Pennsylvania.

Background on GHI

Group Health Incorporated (GHI) is a statewide health insurer serving New Yorkers since 1937. GHI and its wholly owned subsidiary, GHIHMO, provide health care coverage and administrative services to more than 2.6 million people. GHI offers customers a variety of PPO, EPO, and HMO programs, as well as prescription drug, dental, and vision plans. Throughout its history GHI has pioneered many of the programs that are now standard in the health insurance field.