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LUMENOS LAUNCHES ENLIGHTENED APPROACH TO HEALTH CARE

New Internet Health Care Company Gives Choice and Control to Consumers through Internet-Enabled Health Plan

Secures Second Round Funding of $34 Million from Internet HealthCare Group, KBL Healthcare Ventures, Liberty Partners, L.P., Novartis, Johnson & Johnson Development Corporation and Allianz of America, Inc.

Alexandria, Va. - July 28, 2000

Lumenos (www.lumenos.com), an innovative new Internet health care company, has announced the launch of a new form of health care that utilizes the power of the Internet to give consumers choice, control and the potential to build significant personal savings. The online plan will be available to consumers and employers later this summer.

"This is an answer to many of the concerns people have with HMOs," stated Chip Tooke, president of Lumenos. "In order for consumers to have the best possible health care experience, we empower them with a unique health plan that uses interactive tools to do everything from selecting a doctor that's best for them to helping them stay well and live well with personalized health programs."

Lumenos has secured $34 million in second round financing from a select group of strategic and financial investors. Primary investors include returning initial investors Internet HealthCare Group and KBL Healthcare Ventures, together with Liberty Partners, L.P., Novartis, Johnson & Johnson Development Corporation and Allianz of America, Inc.

Consumer-Driven Health Care: Giving Consumers Choice, Control and Savings. Quality, accessibility and rising cost issues have beset the U.S. health care industry, which is currently dominated by restrictive HMO systems. Consumers want to be empowered decision makers, not passive recipients of care. Each year consumers and employers put a substantial amount of money into the health care system and at the end of the year it is gone, regardless of what doctors and services are used. With Lumenos, consumers are put in charge of their health care decisions. They can access the doctors they trust and the services they need, and have the potential to save significant dollars that are currently wasted.

This is how it works:

• Consumers purchase (either through an employer or directly) an innovative health and financial services product from Lumenos.

• Money is put into the individual's personal Lumenos Health Savings Account (HSA). A portion of the money is used for low cost, high deductible health insurance to cover a serious accident or illness. The rest stays in the individual's Health Savings Account (HSA), which is used to pay for routine health services he or she needs - from office visits to alternative medicine.

• "Smart" spending is rewarded, as the dollars left in the account at the end of the year are the consumer's to keep. Those dollars can be invested through online investment tools and rolled over each year.

"The money that today is wasted or goes to cover HMO overhead is conserved with the Lumenos plan. It can be saved, invested or treated as a 'bonus' for a health care service you may not have considered in the past such as laser eye surgery," said Tooke. "Actuarial data indicates that on average an individual can save approximately $700 a year. For a family of four, this could mean savings of $2,000 or more annually."

Consumers can take advantage of online tools and the latest health information to help make smart health care choices and manage expenses wisely. Through a special online Docs Plus directory, they can find doctors, pharmacies, dentists, chiropractors and many other health care services. They'll even be able to find out how much typical services cost. In addition, special discounted rates have been negotiated with more than 225,000 physicians, along with products and services such as Prescription drugs, dental and vision care, and more. And, online financial tools will provide 24-hour access to individuals' HSA accounts.

A Solution for Employers and Physicians. Employers are challenged with offering employees personalized health care benefits at a price they can afford. All indications point to an impending shift from a defined benefit model to a defined contribution model. The Lumenos solution fits perfectly with that trend, as it offers employers a cost-effective solution to today's rising health care costs and takes them out of the health care business so they can concentrate on their own operations.

For physicians, who are increasingly leaving clinical practice to escape the administrative hassles and inability to control treatment decisions, Lumenos is a no-referral Internet health care company that eliminates the bureaucratic red tape and enables doctors to focus on patient health and wellness. With Lumenos, doctors can explore the best treatment options for their patients.

Lumenos Alliances In this round of funding, Lumenos has partnered with Internet HealthCare Group, KBL Healthcare Ventures, Liberty Partners, L.P., Novartis, Johnson & Johnson Development Corporation and Allianz of America, Inc. This diverse group brings not only dollars but also extensive knowledge in financial and health care services.

"Lumenos is an innovative e-health care company that has a solid management team, a sound business plan, and an opportunity to change the health care system for the better," said Steve Shulman, chairman and CEO of Internet HealthCare Group. "It offers consumers something they have needed - control over the access, quality and cost of their own health care, online. Employers benefit from improved employee satisfaction and cost controls as well, creating a win-win situation."

"We are dedicated to partnering with innovative companies that create lasting value within the U.S. health care system," said Zachary C. Berk, O.D., vice chairman of Lumenos and managing director of KBL Healthcare Ventures. "Lumenos is offering a real solution to a health care system that isn't working for millions of consumers, employers and physicians."

Lumenos has partnered with Trustmark Insurance Company to underwrite the health insurance. J. Grover Thomas Jr., Trustmark's president and chief executive officer, said, "We're delighted to join the Lumenos alliance. We stress quality in our products, and the Lumenos venture will provide outstanding quality for those who want to employ Internet technology to help manage their health and financial well-being."

About Our Partners

• Internet HealthCare Group (www.ihcg.com), based in Avon, Conn., is an Internet holding company actively engaged in business-to-business e-commerce through a network of partner companies.

• KBL Healthcare Ventures (www.kblhealthcare.com), based in New York City, is a leading venture capital firm dedicated to discovering and developing innovative companies that create real, lasting value within the U.S. health care system.

• Liberty Partners, L.P. (www.libertypartners.com), based in New York City, is a $1.3 billion private equity firm that focuses on growth investments in health care and technology and traditional leveraged buyouts.

• Novartis (www.novartis.com), headquartered in Basel, Switzerland, is a world leader in health care with core businesses in pharmaceuticals, consumer health, generics, eye-care and animal health.

• Allianz of America, Inc. (www.allianz.com), based in Westport, Conn., is the North American investment advisor to Allianz AG and its insurance affiliates.

• Trustmark Insurance Company (www.trustmarkinsurance.com), based in Lake Forest, Ill., is a recognized leader in medical insurance.