Contact: John C. Barrett   (407) 282-5131

MED ADVANTAGE YEAR 2000 READINESS DISCLOSURE

Year 2000 Information

We all know that the "Year 2000" problem has been getting a lot of attention lately. Because of this interest, the U.S. Congress recently passed a law that gives companies a chance to make or remake statements regarding their ability to deal with the change in date from 1999 to 2000 without incurring additional liability.

Year 2000 Information and Readiness Disclosure Act of 1998

This Web site contains Year 2000 statements regarding Med Advantage, Inc. Information contained on this Web site or Med Advantage's past and present Web sites regarding products and services offered by Med Advantage are "Year 2000 Readiness Disclosures" as defined by the Year 2000 Information and Readiness Disclosure Act of 1998, (Public Law 105-271, 112 Stat. 2386) enacted on October 19, 1998. Med Advantage's Year 2000 Internet Web site pages have been and will continue to be our primary mechanism for communicating Year 2000 information.

Year 2000 Readiness Disclosure

Previously, Med Advantage may have provided a statement or statements regarding the Year 2000 status of certain products or services provided by Med Advantage. We are designating all such statements, as well as any other Year 2000 information provided to you or contained on our Web site regarding products and services offered by Med Advantage or with respect to Med Advantage's year 2000 processing capabilities or readiness, as "Year 2000 Readiness Disclosures," subject to the limitations set forth below:

Year 2000 Background

Many currently installed computer systems, hardware and software products are coded to accept only two digit entries in the date code field and cannot distinguish 21st century dates from 20th century dates. These date code fields will need to distinguish 21st century dates from 20th century dates and, as a result, many companies' software and computer systems may need to be upgraded or replaced in order to comply with such "Year 2000" requirements. Med Advantage's business uses numerous systems that may potentially be impacted by Year 2000 related problems.

Those systems include, among others:

• hardware and software systems used by Med Advantage to deliver services to its consumers and manage its business, including Med Advantage's proprietary software systems as well as hardware and software supplied by third parties;
• communications networks, such as the Internet, which Med Advantage depends on to provide services;
• the internal systems of Med Advantage's consumers, users and suppliers;
• and non-information technology systems and devices used by Med Advantage in its business, such as telephone and building systems.

Our Plan

Med Advantage has implemented a six-phase plan to mitigate Year 2000 effects on Med Advantage's business and systems. Med Advantage has designated a Year 2000 project team, given it a budget, and charged it with the task of developing and implementing the plan. In addition, our plan has executive sponsorship, and is currently regularly reviewed by senior management. Our six-phase plan, although subject to change without notice in Med Advantage's sole discretion, presently includes the following:

• Phase one, awareness: involves increasing company awareness by educating and involving all appropriate levels of management regarding the need to address Year 2000 issues.
• Phase two, inventory: consists of identifying all of Med Advantage's systems, technology, services and relationships that may be impacted by Year 2000.
• Phase three, assessment: involves determining Med Advantage's current state of Year 2000 readiness for those areas identified in the inventory phase and prioritizing areas that need to be addressed.
• Phase four, remediation: consists of developing a plan and repairing, replacing or retiring those systems identified as needing correction in the assessment phase.
• Phase five, validation: involves developing test plans, conducting tests and analyzing the results of these tests to assure all key systems are Year 2000 compliant.
• Phase six, implementation and contingency planning: consists of moving compliant systems back into the production environment and to assure systems' Year 2000 status remains unaffected by subsequent changes. The contingency plan includes developing Med Advantage's response to failure of mission critical systems, and other major risks related to Year 2000 compliance.

Med Advantage has completed phase one, two, three, four, five, and is in the final stages of phase six, implementation, which is scheduled to be substantially complete by the end of the second quarter of 1999.

In addition to the systems used by Med Advantage in its business, Med Advantage utilizes third-party equipment and software in the delivery of its services and in the management of its business that may not be Year 2000 compliant. Med Advantage relies upon various vendors, governmental agencies, utility companies, telecommunication service companies, including Internet service and online service providers, delivery service companies and other service providers who are outside Med Advantage's control. Med Advantage has fully determined the progress of these entities in identifying and addressing systems that may potentially be impacted by Year 2000 related problems. As part of Med Advantage's overall plans to make inquiries of certain of these entities and take steps to assess or monitor their compliance.

While Med Advantage has identified tasks to be accomplished and plans to attain Year 2000 readiness, there is no assurance that Med Advantage will succeed in its efforts to address all Year 2000 issues. In an effort to reduce the risks associated with the Year 2000, Med Advantage has taken the additional step of incorporating contingency planning into its six-phase plan, building upon disaster recovery and contingency planning that Med Advantage already has in place.

Med Advantage cannot and will not make any representations regarding the Year 2000 compliance or readiness of any other person or entity or of any products or services provided by a third party. To the extent you have been provided with any prior statements regarding the services or products of Med Advantage or a third party that are inconsistent with any of the statements contained here or on our Web site, the statements contained here shall be controlling and you may not rely upon any such inconsistent statement.

You should refer to this Year 2000 Internet Web page for the most current information regarding Year 2000 readiness. This Year 2000 Readiness Disclosure designation applies to information delivered to you, through or derived from Med Advantage's past and present services, web site, and or other channels or materials, including but not limited to customer service. This disclosure is intended solely for products or services sold and provided to customers in the United States and is not to be relied upon outside the United States.

The above discussion for the Year 2000 is based on Med Advantage's best estimates given information that is currently available, and is subject to change.