SHPS Holdings, Inc. Completes Acquisition of Landacorp, Inc.

Business Editors

LOUISVILLE, Ky.--(BUSINESS WIRE)--April 27, 2004

SHPS Holdings, Inc., the majority shareholder in SHPS, Inc., a provider of integrated health management services headquartered in Louisville, Ky., announced today that it completed its acquisition of Landacorp, Inc., an Atlanta-based provider of population health management solutions.

The deal, initially announced in March, was valued at $56 million and officially closed today after receiving regulatory and shareholder approval.

"The addition of Landacorp's care management capabilities and medical management software will enhance SHPS' leadership position in integrated health management," said Dave Nelson, president and chief executive officer of SHPS.

Landacorp has a current client base of health plans, hospitals and integrated delivery networks, TPAs and PPOs. It is known in the industry for both its state-of-the-art software solutions that include advanced case, utilization and resource management applications, and its disease management services, including health risk assessment, segmentation, stratification, enrollment, low acuity intervention and fulfillment.

Landacorp, which has operations in Atlanta, Raleigh, N.C. and Chico, Calif., was selected as one of the top 12 disease management vendors in the spring 2003 DSM Services Report issued by the Health Industries Research Companies (HIRC).

"The combination of these two remarkable companies is a significant development in care management," said Gene Miller, president and CEO of Landacorp. "We feel confident that there is no other provider who offers a greater scope of services in care management than what is now available at SHPS."

The completion of the Landacorp merger comes just two months after SHPS acquired another care management provider, National Health Services, Inc., from BCE Emergis, Inc.

About SHPS Holdings, Inc. and SHPS, Inc.

SHPS Holdings, Inc. is the majority shareholder of SHPS, Inc., a provider of integrated health management services headquartered in Louisville, Ky. With services that include care management, benefit plan administration, insurance carrier management and spending account administration, SHPS provides corporations and consumers with a single, comprehensive source of health management decision guidance. The company serves more than 700 organizations, including more than 65 Fortune 500 companies, and employs more than 2,240 clinical professionals, employee benefits specialists, and information technology experts in facilities across the United States. SHPS is a Welsh, Carson, Anderson & Stowe company. WCAS a private equity firm based in New York. For more information, visit www.shps.net and www.welshcarson.com.