Allow Me to Dispel the Rumor

October 2006

Dear Producers,

It has come to our attention that there is a rumor circulating about Encore Health Network being bought out. I can assure you—this is simply a rumor and nothing more.

Unfortunately, negative propaganda such as this comes and goes from time to time, but allow me say that Encore has not been sold and is not in discussions with any potential company to do so. The truth is, Encore and its parent company, The HealthCareGroup, are financially strong. The HealthCare Group actually had its best financial year ever in 2005, and 2006 has been very successful as well.

Let me take this opportunity to share how Encore is continuing to grow in a number of areas. For the first time, we are offering national PPO coverage through our various partnerships. And Encore's new dual product option allows us to combine the very best of the Encore and Encircle networks to maximize health plan savings like never before. We continue to offer great value-added programs like our complimentary hearing, vision, and Healthy Roads™ discounts, and we are always pursuing new products that enable Encore to be the total health care solution for your clients. Even our producer incentive program continues to grow as almost 350 producers have now joined in the fun for this year's Event—100 more than last year!

So let any anxieties be put to rest. Together we will continue to work as a team and watch Encore as it expands to new regions to better serve the needs of our clients, our colleagues, and our communities.

Sincerely,



Kathy O' Farrell
Vice President - PPO Networks
09/29/06