MENTOR Purchases Gilmore Home Health Care, Optimal Environments and Creative Home Programs; Deals are Latest in Series of Strategic Transactions.

BOSTON--(BUSINESS WIRE)--Dec. 1, 1999--

National MENTOR today announced continued acquisition activity with closure on three transactions equaling $3.7 million in revenue.

Adding to MENTOR's national network of human service programs and companies are: Gilmore Home Health Care, Ltd. Co., a provider of home-based elder care services located in Roswell, New Mexico.; Optimal Environments, Inc., a rehabilitation provider of acquired brain injury services in Tampa, Florida; and Creative Home Programs, an early intervention program for children in Riverside, California.

The partnerships are the latest in a series of acquisitions planned by MENTOR in the coming months. Since 1998, MENTOR has purchased 11 companies, bringing its current annual run rate to approximately $200 million.

"MENTOR is accelerating its ongoing effort to expand services with strategic acquisitions," said Greg Torres, MENTOR president and CEO. "By focusing on both smaller organizations in high-growth areas as well as larger companies that reinforce our strength in certain regions or service lines, MENTOR is continuing to build the nation's premier human services network."

Gilmore Home Health Care (GHHC) was founded in 1994 as a home care agency for elders needing a variety of in-home support services. GHHC currently provides home health care to home-bound elders on an intermittent or part-time basis. Services include personal care, assistance with activities of daily living, meal preparation, skilled nursing and physical therapy.

As a provider of services in an area of high demand, GHHC adds to MENTOR's strength as a diverse human service provider offering a full range of care options from infancy to old age. GHHC has revenues of $650,000.

With revenues of approximately $1.9 million, Optimal Environments operates two primary programs for persons with neurological injury, most commonly acquired brain injury. The Community Rehabilitation Program is provided in the company's 14-bed and six-bed licensed transitional living facilities. The Supported Independent Living Program is provided in one six-bed assisted living facility.

Creative Home Programs provides early intervention, in-home services to over 400 infants and toddlers who have, or are at risk of, developmental delays or disabilities. Founded in 1983 in Riverside, California, the company uses individualized treatment plans for each child it serves. These plans focus on enhancing communication, sensory awareness, gross and fine motor skills and social development.

Creative Home Programs has revenues of $1.2 million.

"MENTOR's goal has always been to provide people of all ages with numerous options for high quality, community-based care," said Torres. "Purchasing companies with diverse models in service areas like elder care, early intervention, and acquired brain injury compliments the MENTOR Network's existing programming, giving payers and recipients even greater choices. The Gilmore, Optimal and Creative Homes transactions are three of many deals MENTOR has planned for the coming year."

MENTOR, a subsidiary of Magellan Health Services, Inc. (NYSE:MGL), was founded in 1980 in Boston, Mass., and provides a range of community-based human services to vulnerable populations. With annual revenues of approximately $200 million, the company operates in 22 states, and with the latest acquisitions, includes 11 wholly owned subsidiaries.

MENTOR's national network of care serves children and adolescents with behavioral problems due to abuse or neglect, people with developmental disabilities, youth within the juvenile justice system, persons with brain injury, and elders, among others.

Magellan Health Services, Inc., is the nation's leading specialty managed care organization.

In addition to MENTOR, the company comprises Magellan Behavioral Health, the nation's largest managed behavioral health care organization, covering over 66 million members, and Magellan Specialty Health, a manager of specialist networks and disease management programs for three and one half million health plan members.