American Specialty Health Launches Professional Affairs Department; Kurt Hegetschweiler, D.C to Head New Department

San Diego, CA (June 26, 2001) - American Specialty Health (ASH) announced today the creation of a new Professional Affairs department designed to enhance the organization's relationships and proactive involvement with government agencies, national and state provider associations, universities and various clinical partners. ASH is the nation's leading health services organization providing affordable, quality complementary healthcare to members of health plans and employer groups.

Concurrent with the announcement, Kurt Hegetschweiler, D.C., the organization's vice president of Chiropractic Services, was named vice president of Professional Affairs. Dr. Hegetschweiler is a former, two-time president of both the American Chiropractic Association and the California Chiropractic Association.

R. Lloyd Friesen, D.C., also a past president of the California Chiropractic Association, has joined ASH as director of the department. Thomas LaBrot, D.C., has assumed Dr. Hegetschweiler's previous role as vice president of Chiropractic Services. Dr. Douglas Metz remains in his current position as Senior Vice President of Health Services.

The impetus for the creation of the new department was the Company's national expansion, which began two years ago. Over that time ASH has experienced a 500 percent growth in the size of its provider network, which now includes 19,000 acupuncturists, chiropractors, dietitians and massage therapists, among others located in all 50 states. It is the largest such network in the country. During that same time, the Company has seen a 75 percent growth in membership.

"As we enter each new State, we find there to be tremendous value in meeting face to face with State Associations to provide an overview of American Specialty Health and to answer any questions they may have," says Dr. Hegetschweiler. "Our Professional Affairs department provides us a way to interact not only with association leadership but to touch their membership through educational programs, conferences, annual meetings and other appropriate venues."

Consistent with this, the new department will support Dr. Metz and the Company's Health Services division in forging relationships with colleges and universities throughout the country for the purpose of co-sponsoring continuing education programs for providers and research initiatives. The Professional Affairs department will also support provider recruitment, marketing and other company functions.

On a more global level, the Professional Affairs department will interact with such government agencies as the National Institutes of Health, the National Center for Complementary and Alternative Medicine and others. Consumer demand has turned complementary healthcare into a $40 billion market in the United States, and ASH is the nation's leader providing full-risk administration of complementary healthcare benefits for 5.8 million health plan members. Through its affinity program with more than 100 health plans nationwide, about 55 million individuals have access to one or more of ASH's services.

Of particular importance and interest, the Professional Affairs department will be establishing state-by-state networks of "clinical consultants. These professionals across all complementary health disciplines will blend their knowledge of their clinical field with local market familiarity to help review company policy and advise us on important issues," says Dr. Hegetschweiler. Additionally, the department will work vigorously to unearth select business opportunities that provide added value to individuals in ASH's provider network. These may include partnerships with vendors, suppliers or others who can contribute to the efficiency, service or financial performance of our participating providers.

"We are extremely proud of the leadership role and entrepreneurial spirit we have brought over the past 14 years to complementary healthcare," says ASH Co-Founder, Chairman and Chief Executive Officer George DeVries. "We believe that our new Professional Affairs department, particularly under the leadership of Dr. Hegetschweiler, is an important new pillar of the Company that will allow us to remain an active and important voice for the industry and the providers we work with."

Few in the industry would be as uniquely qualified as is Dr. Hegetschweiler for this task. In private practice for more than two decades and a member of ASH’s leadership team since 1998, Dr. Hegetschweiler has been a member of the organization's Quality Improvement Committee for 12 years. His leadership on both the ACA and CCA has made him one of the industry's best-known and most widely respected individuals.

New Director of Professional Affairs Dr. Friesen has been in private practice for more than 30 years and has held numerous positions within the chiropractic profession. Most recently he was named the Doctor of the Century and Honorary Life Member of the California Chiropractic Association, an organization for which he served as secretary, treasurer, vice president and president. He is a Diplomat of the American Board of Quality Assurance and Utilization Review Physicians.

Based in San Diego, California, American Specialty Health and its affiliates provide complementary healthcare network access, affinity discount and managed care programs nationwide to health plans, insurance carriers, employer groups and trust funds. Its comprehensive services include utilization management, quality management, member and provider services, claims and credentialing. The Company has been awarded full accreditation by the American Accreditation HealthCare Commission/ URAC for the quality of its healthcare operations.

Further information on ASH may be obtained by calling 1-800-848-3555.