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ETHIX CORP. ACQUIRES MANAGED CARE COMPANY FROM NEW YORK LIFE; NEW YORK LIFE BECOMES MINORITY STOCKHOLDER OF ETHIX

 ETHIX CORP. ACQUIRES MANAGED CARE COMPANY FROM NEW YORK LIFE;
 NEW YORK LIFE BECOMES MINORITY STOCKHOLDER OF ETHIX
 PORTLAND, Ore., Nov. 11 /PRNewswire/ -- The Ethix Corporation, one of the nation's largest and fastest growing health care management companies, today announced its acquisition from New York Life Insurance Company of CoMed Management, Inc., a Dublin, Ohio-based managed health care company with 287,000 members in managed indemnity and Preferred Provider Organization (PPO) programs. In the transaction, New York Life received a partial interest in the Ethix Corporation.
 Stephen A. Gregg, Ethix's founder, chairman and chief executive, said the acquisition of CoMed will increase the total membership in all of the Ethix managed care programs to more than five million lives.
 Peter S. Linder, president of Ethix, added that CoMed's managed indemnity business, its Ohio PPO and its PPO arrangements in 12 other states "are a natural complement to our existing business." Ethix has a large managed indemnity operation, eight other PPO health plans around the country, and several specialty managed care programs.
 Seymour Sternberg, executive vice president of New York Life responsible for its group insurance operations, indicated that Ethix will be a major supplier of managed care services for New York Life's managed indemnity products, as well as an important part of its national PPO network.
 "We believe our relationship with Ethix will enable New York Life to further enhance the managed care services we provide to our clients," Sternberg said.
 New York Life also owns Sanus Corporate Health Systems, which provides Health Maintenance Organization (HMO) and PPO services in several cities, and has an ownership interest in Benefit Panel Services, a firm it uses for PPO and Exclusive Provider Organization (EPO) services in California.
 New York Life also has contractual relationships with health plans in other cities, resulting in a national managed care network that altogether covers 94 markets in 23 states. The Ethix relationship increases to 58 the number of markets in which New York Life has an ownership interest in its managed care network.
 Established in 1982, Ethix serves more than 10,000 clients, including Northwest Airlines, the Teamsters, the American Postal Workers Union, Trump Properties and several large insurance companies, including the Hartford, Mass Mutual, John Hancock, Great West Life, Cigna and New York Life. In 1992, the company's revenues will be approximately $25 million, a one-third increase over 1991 levels, according to Gregg.
 New York Life Insurance Company, with over $55 billion in consolidated assets, is one of the largest life insurance companies in the United States. On the insurance side, New York Life and its affiliates offer traditional life, group, annuity, and disability insurance products, as well as managed health care. On the investment side, New York Life and its affiliates provide institutional asset management and investment products for individuals, such as mutual funds and partnership investments.
 -0- 11/11/92
 /CONTACT: Jim Tolve of New York Life, 212-576-3869; or Tom Hopkinson, 212-682-6046, or Jack Lauder, 212-682-6048, both of T.M. Hopkinson & Co., for Ethix/ CO: Ethix Corp.; New York Life Insurance Company;
 CoMed Management, Inc. ST: New York, Oregon, Ohio IN: INS HEA SU: TNM


SB-GK -- NY055 -- 9801 11/11/92 14:29 EST
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Date:Nov 11, 1992
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