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PROVIDENT AMERICAN CHAIRMAN TO PURCHASE $2 MILLION OF PREFERRED STOCK; COMPANY DECLARES 10 PERCENT STOCK DIVIDEND

 NORRISTOWN, Pa., March 25 /PRNewswire/ -- Provident American Corporation (NASDAQ: PAMC) announced that Alvin H. Clemens, the chairman and CEO, has agreed to purchase 500,000 shares of cumulative convertible preferred stock at $4 per share. Each preferred share will be convertible into one share of newly authorized Class A common and pay a 7 percent annual dividend.
 Mitchell A. Kalish, president, stated, "This financing will have a very significant impact upon the capital and surplus of Provident Indemnity Life Insurance Company, the principal insurance subsidiary. The additional capital assists Provident Indemnity in meeting the new risk based capital rules and also affords the flexibility to broaden the marketing of our pre-need insurance products, our fastest growing line. This financial commitment by our chairman is an excellent demonstration of confidence in achieving our objective of becoming the pre-eminent company in the pre-need insurance field."
 In addition, the company announced that the board of directors has declared a 10 percent stock dividend to shareholders of record as of April 16, 1993, payable on or before May 28, 1993.
 Up to an additional 125,000 shares of the convertible shares will be offered to the other directors of the company. The closing for the sale will be on or before April 15, 1993. The Class A common shares into which the new preferred will be convertible will be entitled to four votes per share while the current outstanding common stock will retain the right of one vote per share.
 The company recently announced gross revenues of $77,132,000 and net income of $61,000 for the year ended Dec. 31, 1992.
 -0- 3/25/93
 /CONTACT: Anthony R. Verdi, chief financial officer of Provident American Corporation, 215-279-2500; or C. Rodney O'Connor of Cameron Associates, 212-644-9560, for Provident American Corporation/
 (PAMC)


CO: Provident American Corporation ST: Pennsylvania IN: INS SU: DIV

AH-LR -- NY054 -- 9615 03/25/93 13:04 EST
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Publication:PR Newswire
Date:Mar 25, 1993
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