PHYSICIANS HEALTHCARE PLANS, INC. -PHP- COMPLETES THE SALE OF ITS MEDICAID, HEALTHY...

PHYSICIANS HEALTHCARE PLANS, INC. -PHP- COMPLETES THE SALE OF ITS MEDICAID, HEALTHY KIDS AND SUMMIT PROGRAMS TO AMERIGROUP CORPORATION

Also Finalizes the Sale of Its Medicare CarePlus Health Plan HMO to Michael B. Fernandez, Chairman and CEO, and Other PHP Shareholders CarePlus Health Plans HMO will be Headquartered in Coral Gables, Florida


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MIAMI–(HISPANIC PR WIRE – BUSINESS WIRE)–Jan. 13, 2003–Physicians Healthcare Plans, Inc. (PHP): PHP Holdings, Inc. and its subsidiary, Physicians Healthcare Plans, Inc. (PHP), announce the closing of a transaction with AMERIGROUP Corporation of Virginia Beach, Virginia. AMERIGROUP paid approximately $121 million for PHP’s Medicaid, Healthy Kids and Summit programs. In addition, shareholders of PHP have received or will receive from PHP approximately $57 million in connection with the transaction. Accordingly, the transaction is expected to generate up to approximately $180 million to PHP shareholders.

Immediately prior to the transaction with AMERIGROUP Corporation, PHP sold its Medicare CarePlus Health Plan HMO business to Michael B. Fernandez, former Chairman and CEO of PHP, and other PHP shareholders.

“This transaction provides us with the opportunity to focus our attention exclusively on the Medicare sector,” said Michael B. Fernandez, who will remain Chairman and CEO of the Medicare HMO.

The Medicare HMO will be named CarePlus Health Plans and is anticipated to generate annual revenues in excess of $400 million and serve the healthcare needs of over 40,000 seniors in Miami-Dade and Broward counties.

CarePlus Health Plans HMO will be headquartered in Coral Gables, Florida and will retain all 950 employees in South Florida. In addition, the company will operate CAC-CarePlus Medical Centers, Inc., CarePlus Pharmacies Inc., and CarePlus Transport Co.

Note: A photo is available at URL: http://www.businesswire.com/cgi-bin/photo.cgi?pw.011303/bb1

–30–CP/mi*

CONTACT:

CarePlus Health Plans, Inc., Miami

Michael B. Fernandez, 305/441-9400 ext. 2250

PHYSICIANS HEALTHCARE PLANS, INC. -PHP- COMPLETES THE SALE OF ITS MEDICAID, HEALTHY KIDS AND SUMMIT PROGRAMS TO AMERIGROUP CORPORATION