For Immediate Release Elder Health Inc. Names Jeffrey M. Folick New CEO BALTIMORE, MD March 13, 2006 - Jeffrey M. Folick has been named Chief Executive Officer of Elder Health, Inc., a privately held Medicare managed health care company headquartered in Baltimore, Maryland. Folick was formerly Executive Vice President for Regional Health Plans and Specialty Companies with Health Net, one of the nation's largest publicly traded managed health care companies. "I am excited about the future for Elder Health," said Folick. "The Elder Health team has built an exceptional organization focused on meeting the health care needs of our nation's most vulnerable population. Going forward in this industry, Elder Health is positioned to gain a significant share of key markets while shaping the future of health care delivery for Medicare beneficiaries." Folick succeeds Michael R. Steele who served as President & CEO of Elder Health since its inception in 1995. "Our sincere thanks goes to Mike Steele for building a strong organization," Elder Health Board Chair David Jensen said. "We are well positioned to take this company to the next level. Jeff is coming on board at a very opportune time for Elder Health, and Mike will continue as President and Chief Operating Officer." Folick has more than 30 years experience in the health care industry, both in health maintenance organization management and hospital administration. Prior to joining Health Net, Folick served as President and Chief Operating Officer of Pacificare Health Systems, President of Pacificare of California, and President of Secure Horizons, Pacificare's Medicare division. Elder Health, Inc. has operated Medicare managed health care plans since 1996 and now serves Medicare beneficiaries in Maryland, Pennsylvania, Texas, and the District of Columbia. Recent company growth includes Elder Health Texas' 2005 introduction into four Texas markets (Corpus Christi, El Paso, Houston, and San Antonio), Elder Health's Pennsylvania's acquisition of AmeriChoice of Pennsylvania's Medicare Advantage Special Needs Plan, which doubled its size, and a service area expansion into Pittsburgh in June 2005. Elder Health Inc. is a ten-year old Baltimore-based company focused on innovation and service for Medicare beneficiaries. Elder Health's subsidiary plans emphasize preventive services, wellness, and added benefits at reduced cost to promote member health. FOR MORE INFORMATION, CONTACT: Jane Winter Vice President, Human Resources Elder Health, Inc. 410-864-4542 or Richmond Simpson Public Relations thevimarcgroupinc. 502-261-9100 ext. 211 502-419-0979