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HUMANA SHAREHOLDERS APPROVE SPIN-OFF

 LOUISVILLE, Ky., Feb. 18 /PRNewswire/ --- Humana (NYSE: HUM) announced that its shareholders approved the separation of the company's hospital and health plan businesses at the annual meeting held today at the company's headquarters in Louisville, Kentucky.
 Following the shareholders meeting, Humana's board of directors declared a dividend of the shares of the hospital company, Galen Health Care, Inc. (NYSE: GHC). For each outstanding share of common stock of Humana Inc. owned on March 1, 1993, the record date, Humana shareholders will receive one share of Galen common stock. The Galen shares will be distributed on March 5, 1993, the payment date.
 It is anticipated that the Galen common stock will begin trading on a "when-issued" basis on the New York Stock Exchange on February 19.
 David A. Jones, Humana's chairman and chief executive officer, will continue in the same capacity. Carl F. Pollard, Humana's president and chief operating officer, will be the chairman and chief executive officer of Galen.
 "Our shareholders recognized that we had reached another turning point in our history," said Jones and Pollard in a joint statement. "While our integrated strategy worked well for several years, the company's management, board of directors and now its shareholders concur that dividing the company will better enable each of the two entities to maximize its potential and better fulfill its mission in the years ahead."
 Contractual arrangements have been negotiated between Humana and Galen to provide a smooth transition for hospital patients, health plan members, physicians and employees affected by the division of the company, Jones and Pollard said.
 After the separation, Humana Inc. will operate the health plan business which serves approximately 1.7 million members in its health plans for employer groups and Medicare beneficiaries. Galen Health Care, Inc. will own and operate 76 hospitals in the United States and Europe. Both companies are based in Louisville, Kentucky.
 -0- 2/18/93
 /CONTACT: Laurie G. Scarborough of Humana, 502-580-1037, or Richard A. Lechleiter of Galen Health Care, Inc., 502-580-3906/
 (HUM GHC)


CO: Humana; Galen Health Care, Inc. ST: Kentucky IN: HEA SU: RCN DIV

CM -- CH004 -- 7915 02/18/93 12:59 EST
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Publication:PR Newswire
Date:Feb 18, 1993
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