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Clear Choice Acquires Employee Benefits Administration Firm

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  Published in Business and Finance on Monday, January 5th 2009 at 5:54 GMT, Last Modified on 2009-01-05 05:55:55 by Market Wire
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BEND, Ore.--([ BUSINESS WIRE ])--Clear Choice Health Plans, Inc. (OTCBB:CCHN) today announced it has acquired privately-owned Trusteed Plans Service Corporation (TPSC), a Tacoma, Wash.-based third party administrator (TPA) of employee benefits plans that operates in six Western states—Alaska, Washington, Oregon, Nevada, Idaho and Montana. Terms of the transaction were not disclosed.

TPSC will retain its name and management team and operate as a wholly owned subsidiary of Clear Choice.

"The acquisition of TPSC, which is expected to be accretive to earnings on a pro forma basis and add more than $5 million in annual revenues in 2009, fits well within our diversification goals by adding a book of business that is not underwritten," said Patricia Gibford, president and CEO of Clear Choice. "The transaction also will add approximately 55,000 new client lives to our existing 46,000-plus members and significantly enhance our geographic footprint in the West with a business that has strong local ties and a proven track record throughout the region. Moreover, TPSC provides an opportunity for Clear Choice to enter a new market niche and augment its business with a new, self-funded, non-underwritten product that offers a revenue stream with outstanding potential."

"With the combination of our two well-established organizations, our strengths will complement each other and add efficiencies that will ultimately enhance the services we provide for our respective clients and members," said Randy Cline, executive vice president and COO of Clear Choice. "The transaction marks the first acquisition that Clear Choice has consummated as part of our strategic growth plan and represents an important step in positioning the company to offer a full range of services for the large employer market throughout the West."

"We are very pleased to join the Clear Choice family," said TPSC president, Robert Ewan, Ph.D. "Being part of Clear Choice will provide significant added professional resources, particularly in the marketing arena. It also will allow both companies to tap into each other's existing base of clients."

"Clear Choice provides an ideal complement to our organization," added Peter Hamilton, executive vice president of TPSC. "In a market where demand for affordable health plans continues to rise, as well as the need for experienced management teams that know how to administer employee benefits plans, we will provide a solid line of products for a growing, diverse customer base."

About Clear Choice Health Plans

Clear Choice offers affordable health plans to meet the needs of employers, providers and consumers. The company provides health insurance, including Medicare Advantage plans, commercial plans, individual plans and administrative services to individuals and businesses throughout the region. The company also offers life, disability, dental, vision and voluntary benefits programs. Clear Choice is dedicated to the development of community-based health insurance plans. For information call 888-677-5852 or visit [ www.clearchoicehp.com ].

About Trusteed Plans Service Corporation

Founded in 1963,Trusteed Plans Service Corporation provides competitively-priced employee benefit services to self-funded employers, associations, Taft-Hartley trusts, and Chamber of Commerce plans in Alaska, Washington, Oregon, Nevada, Idaho and Montana.

Safe Harbor statement under the Private Securities Litigation Reform Act of 1995

Certain statements contained in this press release are forward-looking in nature and involve a number of risks and uncertainties. Such forward-looking statements, including, but not limited to, statements regarding revenue growth, the enhanced services and efficiencies to be realized from the acquisition of Trusteed Plans Service Corporation and that it will add more than $5 million to Clear Choice's annual revenues and be accretive to earnings in 2009, are within the meaning of that term in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Act of 1934, as amended. The words "believe," "estimate," "expect," "intend," "anticipate," "plan," "appears," "will," and similar expressions and variations thereof identify certain of such forward-looking statements, which speak only as of the dates on which they were made. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those indicated in the forward-looking statements as a result of various factors. Readers are cautioned not to place undue reliance on these forward-looking statements.