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UnitedHealth Group Signs Definitive Agreement to Acquire Mid Atlantic Medical Services, Inc.

Article Excerpt
Business Editors

MINNEAPOLIS--(BUSINESS WIRE)--Oct. 27, 2003

UnitedHealth Group (NYSE:UNH):

-- Strengthens Market Position in Important and Growing Region

-- Further Expands and Enhances Customer Products and Services

-- Transaction Additive to 2004 Earnings Per Share

UnitedHealth Group (NYSE:UNH) and Mid Atlantic Medical Services (NYSE:MME) announced today that they have signed a definitive agreement under which UnitedHealthcare, a division of UnitedHealth Group, will merge with Mid Atlantic Medical Services, Inc. (MAMSI). MAMSI owns and operates health maintenance organizations and provides related health and administrative services for approximately 2 million people in Maryland, Washington D.C., Virginia, Delaware, West Virginia, northern North Carolina and southeastern Pennsylvania.

Completion of the acquisition, subject to regulatory approvals and approval by MAMSI shareholders, is expected in the first quarter of 2004. Under the terms of the agreement, MAMSI shareholders will receive UnitedHealth Group stock at a fixed exchange ratio of 0.82 shares for each MAMSI share, plus $18.00 per share in cash. The total consideration for the transaction is a combination of approximately 38.6 million net shares and $860 million in cash, which will ultimately net to just over a $600 million cash outlay after considering...

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