First American Health Concepts and AFLAC announce significant new marketing alliance.

PHOENIX--(BUSINESS WIRE)--May 4, 1995--First American Health Concepts, Inc. (NASDAQ:FAHC) Thursday announced that it will join forces with Vision Care Administrators, Inc. (VCA), and American Family Life Assurance Company of Columbus (AFLAC) to market FAHC's Eye Care Plan of America (ECPA) non-insured vision care plan.

Under the agreement, VCA will market the ECPA plan to AFLAC's independent sales agents who will then sell the plan to AFLAC policyholders.

"This significant new agreement will extend the growing success of our managed eyecare programs and services," FAHC President and Chief Executive Officer John A. Raycraft said.

He noted that AFLAC, based in Columbus, Georgia, is the nation's leading marketer of supplemental insurance products, offering individual accident and disability and other policies designed to supplement primary insurance coverage. AFLAC reported 1994 revenues exceeding $6.1 billion and has assets of more than $20 billion.

Today's announcement follows the completion of a six-month trial marketing program in selected markets. Under terms of the agreement, AFLAC agents will offer ECPA's non-insured vision care product to customers while selling other health-related insurance products. FAHC and VCA will share in the overall administration and marketing of the program.

"AFLAC's nationwide field force and over 90,000 payroll accounts will provide an expanded distribution system for Eye Care Plan of America products in markets where ECPA has not traditionally focused its sales efforts," Raycraft said. He added that this capability could add significantly to ECPA non-insured revenues.

"However it would be premature to estimate membership or revenues attributable to the AFLAC alliance," he added. "There should be a more accurate indication of significance within a few months."

FAHC recently released details of its plan to aggressively develop its marketing and sales infrastructure and capabilities to extend the company's reach even further into the marketplace. Raycraft said the alliance with AFLAC and VCA is part of that plan.

"Other efforts are in the works to further enhance our presence in the marketplace for non-insured business and, just as important, for ECPA's self-funded and insured products which represent the fastest growing segment of our business," Raycraft said.

First American Health Concepts markets and administers third-party managed vision care plans nationwide under the trade name Eye Care Plan of America (ECPA). The company serves nearly 10 million members (an estimated 24 million people when dependents are considered) and maintains the largest provider network of its type.

CONTACT: Charlotte Buchen Communications, 602/952-8050