Thursday, January 06, 2005

SafeGuard Health Plans agrees to purchase GE's dental and vision health maintenance business in California

Dental Economics - SafeGuard Health Plans agrees to purchase GE's dental and vision health maintenance business in California

SafeGuard Health Enterprises, Inc. has announced that its California subsidiary, SafeGuard Health Plans, Inc. ("SafeGuard") has signed a definitive agreement to purchase GE's dental and vision health maintenance business in California, which includes the SmileSaver brand. Under the transaction, SafeGuard will assume responsibility for all member, client, provider and broker agreements and will acquire certain other assets and assume certain liabilities at closing. Terms of the transaction were not disclosed, although it was indicated that the transaction is expected to be accretive to the Company's earnings. The transaction is subject to customary closing conditions and approval by the California Department of Managed Health Care.

James E. Buncher, SafeGuard's chairman and chief executive officer, commented, "We are pleased to welcome the more than 200,000 dental and vision plan members to SafeGuard. Our current plan is to preserve the SmileSaver brand and operate it as a division of SafeGuard. Based on the reported membership as of September 30, 2004, this transaction maintains SafeGuard's position as one of the largest dental and vision health maintenance organizations in California."

Mr. Buncher added, "We continue to pursue strategic acquisitions in our core markets of California, Florida and Texas. We have also developed strategic marketing arrangements with several carriers who sell our dental health maintenance products in conjunction with their own dental PPO or indemnity products. Therefore, we anticipate that the continued growth of the Company will come from a combination of acquisitions, strategic partnerships and internal sales predominately through brokers and consultants. With SafeGuard's steady growth over the past several years, the financial strength of the Company and our focus on service, we believe the Company has become a premier provider of dental and vision benefits for both groups and individuals."

SafeGuard Health Enterprises, Inc. is committed to the dental and vision business, with over 30 years of experience. The company provides dental and vision HMO, PPO, indemnity and ASO products to approximately 1.5 million members primarily in California, Florida, and Texas. For more information, visit www.safeguard.net.

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