Server: Microsoft-IIS/3.0 Date: Thu, 18 Dec 1997 08:51:25 GMT Content-Type: text/html Accept-Ranges: bytes Last-Modified: Thu, 11 Sep 1997 02:15:45 GMT Content-Length: 4863 Investor Services

 

Giving added momentum to our already strong performance is the fact that the dental benefits industry operates in an environment that is conducive to continued rapid growth:

  • Dental spending nationally is robust, growing at a rate far in excess of the Consumer Price Index for all goods (the office of National Health Statistics estimated a 7.8% increase in dental spending in 1995).
  • Dental coverage is a highly valued benefit by employees.
  • Over one-half of the U.S. population has no dental benefits coverage.
  • Within the portion of the population that has dental benefits, the predominant form of coverage is an indemnity product. These products generally have little or no incentive to promote dental wellness or manage costs.
  • It is widely acknowledged by clinicians that dental health can be significantly improved through preventive measures.
  • There is a growing awareness among dentists that accepting a population of managed patients as part of a well-run practice provides solid, predictable cashflow, and also represents an opportunity to grow or leverage the practice substantially.

In short, the market characteristics are favorable for continued strong growth of dental HMO products. The companies that execute well within this industry will thrive, and United Dental Care is well-positioned to differentiate itself in the eyes of its customers.

 

This release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 2.E of the Securities Exchange Act of 1934, as amended. All statements that are based on future expectations rather than on historical facts are forward-looking statements that involve a number of risks and uncertainties. Although the Company believes such forward-looking statements are reasonable, it can give no assurance that such statements will prove to be correct. Important factors that could cause actual results to differ materially from those expressed in any such forward-looking statements include, but are not limited to, the actual loss ratio on its dental indemnity business, the future cost of dental services associated with the Company's dental plans, the number of members selecting indemnity coverage under point-of-service dental plans, the Company's ability to change the provider panel under its Arizona Medicaid contracts, the administrative costs of servicing such plans, and the actual sales of the Company's products. All subsequent written and oral forward-looking statements attributable to the Company or persons acting on its behalf are hereby expressly so qualified in their entirety.

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