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LIFE USA ANNOUNCES INTENT TO TRADE COMMON STOCK ON NASDAQ NATIONAL MARKET

 LIFE USA ANNOUNCES INTENT TO TRADE COMMON STOCK
 ON NASDAQ NATIONAL MARKET
 MINNEAPOLIS, April 22 /PRNewswire/ -- The Board of Directors of Life USA Holding, Inc. (NASDAQ-NMS: LUSA) today announced that it has authorized the trading of Life USA common stock on the NASDAQ National Market. It is anticipated that the stock will become publicly traded on Tuesday, May 19, 1992, using the symbol LUSA.
 In conjunction with this action, the Life USA board has effected a three-for-one reverse stock split to reduce the number of outstanding shares from 42 to 14 million and, concurrent with the first day of public trading, rescinded restrictive legends attached to some outstanding shares.
 Robert W. MacDonald, chairman and CEO of Life USA, said, "The public trading of Life USA common stock will culminate five years of remarkable growth and success, made possible by the efforts of thousands of agent and employee owners. These efforts have enabled Life USA to become one of the best known and most successful young companies in the life insurance industry."
 The action being taken by Life USA is unique in that it is not an initial public offering, but rather the designation for public trading of a class of securities that is already broadly held. Life USA has almost 12,000 existing shareholders, and over 70 percent of its outstanding shares are held by employees and agents. Although its stock has not been publicly traded, for three years Life USA has been a reporting company under the Securities Exchange Act of 1934.
 There appears to be no record of any other company which has been in a position to establish a public trading market for its common stock in this manner.
 MacDonald pointed out, "We were interested in establishing a liquid market for shares owned by our agents and employees, but an analysis of our current and projected capital needs indicated that the company can proceed with its business objectives and defer raising additional capital. With no current need for new capital, we faced the question: How does Life USA become a publicly traded company?"
 MacDonald continued, "Since Life USA Holding is already a public company that qualifies for designation on the NASDAQ National Market, the question was resolved by simply taking action to allow the stock to be traded."
 As of this date, Stephens Inc. of Little Rock, Ark.; Piper Jaffray Inc. of Minneapolis; and The Chicago Corporation of Chicago have agreed to become market makers in Life USA stock. The company anticipates that several additional firms will commit to becoming market makers prior to the scheduled trading date.
 Life USA Holding, Inc. was formed as a life insurance holding company five years ago by MacDonald and four other individuals, all of whom remain senior executives with the company. In 1991, Life USA reported consolidated revenues of $113 million and net income of $4.7 million. consolidated assets have grown to more than $350 million and insurance in force exceeds $4 billion. Total collected premiums have exceeded $500 million for two consecutive years. There are now over 31,000 agents representing Life USA and 275 employees working in the Minneapolis home office.
 -0- 4/22/92
 /CONTACT: Robert W. MacDonald of Life USA, 612-546-7386/
 (LUSA) CO: Life USA Holding, Inc. ST: Minnesota IN: INS SU: OFR


AL -- MN002 -- 1030 04/22/92 08:01 EDT
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Publication:PR Newswire
Date:Apr 22, 1992
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