QUALCHOICE ANNOUNCES COMPLEMENTARY MEDICINE PROGRAM

WINSTON-SALEM, NC (July 1, 2000)-- QualChoice of North Carolina, Inc. announced today plans to offer discounts for complementary and alternative health care programs for its 70,000+ members through its newly established "Alternatives"program. Officials at the managed care company said that discounts will be offered beginning July 1 for members who visit approved network providers for massage therapy, acupuncture and chiropractic care.

"Our goal is to provide an integrated benefits program that meets the needs of our members," said David Patterson, CEO of QualChoice. "As we look to the future of health care, we believe that alternative care will play an important role in the overall health and well-being of our members. The blending of traditional western medicine with alternative therapies is now being recognized in the medical community as an appropriate complement in the healing process."

QualChoice has affiliated with American Specialty Health Networks (ASHN), the leading managed complementary health care company in the country. Under the program, QualChoice members will receive 25 percent discounts when visiting credentialed network providers.

QualChoice members will also be able to utilize the ASHN/IFCN (International Fitness Club Network), a nationwide network of health and fitness facilities. Members will be provided the lowest membership rate for the type of membership selected. As an added plus, participating clubs will allow new members to try their facility at no charge for a week prior to joining (subject to space availability).

Beginning July 1, QualChoice members will also have access through the web site Qualchoicenc.com to an affiliated alternative medicine site which provides members with educational resources on complementary and alternative medicine, discounted resources for supplements and wellness products and an online directory of ASHN's national network of providers and fitness clubs.

"We want to make it as easy as possible for our members to take advantage of this program," said Patterson. "QualChoice also has the support of Wake Forest University Baptist Medical Center, and the resources of Wake Forest University School of Medicine to complement the alternative services provided by this program with excellent traditional medical care. Our goal is to support our members' efforts to stay healthy."

"Complementary health care is one of health care's most rapidly growing areas and hotly demanded by consumers" says George DeVries, President and CEO of American Specialty Health Networks. "We are pleased to join forces with QualChoice to provide their network access programs as well as cutting edge Internet and e-commerce solutions."

American Specialty Health Networks (ASHN) provides network access programs and managed care programs nationwide to health plans, insurance carriers, employer groups and trust funds. Its affiliate, American Specialty Health Plans (ASHP), is the nation's first and largest health plan for chiropractic and acupuncture services. Together ASHP and ASHN cover more than 24 million members nationwide. They employ approximately 500 people and are based in California.

QualChoice of North Carolina is based in Winston-Salem, N.C., and owned by North Carolina Baptist Hospitals, Inc. QualChoice provides coverage to more than 70,000 members in 20 North Carolina counties. In 1999, the Department of Insurance's HMO Performance Report cited QualChoice as having 87 percent of its members satisfied with their health plan, the second-highest score in the state.