For Immediate Release Elder Health Receives Major Equity Investment Baltimore, MD. November 1, 2004 - Elder Health, Inc., a leader in the delivery of health care for Seniors, announced an equity investment of $52,500,000 led by Frazier Health Care Ventures, Wasatch Advisors, New Enterprise Associates (a founding investor), Conning Capital Partners, and Salix Ventures, among others. Elder Health will utilize the proceeds to fund the company's expansion into new markets. Founded in Baltimore in 1996, Elder Health operates Medicare Advantage Plans that provide personalized and enhanced medical care to Medicare Beneficiaries. Elder Health's focus has been on the most needy, chronically ill Medicare Beneficiaries. This population segment is the most costly for the Federal government yet is most likely to experience adverse outcomes & need nursing home placement. Elder Health has developed a more efficient & effective care delivery model that produces better quality & outcomes proactively reducing the need for nursing home placement. Elder Health has experienced dramatic growth in the prior three years due to the demand for its services, tripling its revenue. Elder Health is expected to triple its revenue again in the next three years from its existing $100 Million revenue level. Commenting on the Financing, Elder Health Co-founder and Chief Executive Officer, Michael Steele said, "This funding will help us expand our operations to contiguous markets in Maryland and Pennsylvania and launch new markets throughout the United States. Elder Health's corporate mission is to be 'The Leader In Simplifying Access To Healthcare' and to improve seniors' healthcare outcomes & quality. It is particularly satisfying to partner with committed investors to solve some of the nation's most pressing healthcare issues for seniors," Steele noted. "In a period when insurance companies have shied away from serving patients with chronic illness, it is gratifying to see investors recognize Elder Health's social commitment and track record of results through this investment in Elder Health." "Elder Health's proven track record shows that appropriate preventive care and chronic disease case management can lead to healthier members and solid financial results," said Nader Naini, General Partner of Frazier Healthcare Ventures. "Elder Health's targeting the large market of urban elderly is both strategic and compassionate, and we like to be involved with such intelligent companies." "The new markets, which Elder Health will enter, will offer benefit plans that have demonstrated success in Maryland and Pennsylvania. Our medical management model is focused on personalized medical treatment that encourages preventive care and makes health services easier to access", according to David Yalowitz, MD,MPH, Medical Director for Elder Health. Steele said this is the right time for Elder Health's expansion and move into other strategic markets. Such expansion is as a natural step for the company and represents execution on an aggressive growth strategy. Elder Health, Inc., is a nine-year-old Baltimore-based Medicare Advantage company with revenue in excess of $100 Million. Working in collaboration with Medicare and, when appropriate, Medicaid, Elder Health exercises its corporate mission to emphasize preventive services to promote health among the nation's senior population. FOR MORE INFORMATION, CONTACT: Kyle Raffaniello Public Relations 202-309-4996