July 10, 1996
Media Contact:Joann Rodgers
Phone: (410) 955-8659

Two Giants in Field Launch Information and Products Marketing Company with Novel Business Strategy

BLUE BELL, PA, July 10, 1996 -- The Johns Hopkins University and Health System and U.S. Healthcare (NASDAQ: USHC) today announced the creation of a new health information and products marketing company, InteliHealth, that promises to revitalize healthcare information for consumers in the electronic age. Expected to provide a gold standard for consumer health information, InteliHealth will license content from a multimedia database to corporate partners across new and traditional information channels.

Johns Hopkins, one of the world's best-known medical institutions, will be the principal authority behind all content the company distributes, underscoring the importance of credibility in the growing market for health information where the distinction between fact and opinion often becomes blurred.

The institution's newly-formed Consumer Health Information office will devote a significant portion of its resources to managing content used in InteliHealth services. InteliHealth's multimedia production center will be located on the Hopkins medical campus in Baltimore.

U.S. Healthcare has provided $25 million in funding commitment for development of the company's products and services, and holds a majority ownership position in InteliHealth. Johns Hopkins holds an equity stake in the new venture and will receive a royalty based on InteliHealth revenues.

"It's exciting to see two of the leading forces in the medical industry join to create one of the most comprehensive healthcare information resources," said Tom Durovsik, CEO of InteliHealth. "The company promises to become the clear choice for healthcare content, especially with an enormous number of businesses rushing to establish a media presence and compete in an information driven economy."

InteliHealth will license customized content to a variety of business partners including major on-line services, corporate Web sites, media companies, and traditional information channels. InteliHealth also plans to market its database direct to consumers through a Web site to be launched in the fourth quarter of 1996, as well as through its catalog division, which will provide direct mail order service.

According to Durovsik, InteliHealth services will allow consumers to access and utilize medical expertise ranging from day to day advice to health crisis management. "The services represent a convergence of the most advanced multimedia technology and leading medical resources wedded to cutting-edge consumer marketing strategies," he stated.

"U.S. Healthcare was instrumental in driving the move to managed care 20 years ago," said Mike Cardillo, co-president of U.S. Healthcare. "With its investment in InteliHealth, the company is pioneering the next big trend in the industry -- the direct delivery of healthcare information to consumers. InteliHealth's aggressive content licensing strategy across a variety of media furthers this objective."

"Johns Hopkins' knowledge base stems from the experience of the institution's faculty of 2,000 health professionals and a history of medical, public health, and nursing excellence that spans more than 100 years," said Daniel Nathans, M.D., interim president of Johns Hopkins University and chairman of Johns Hopkins Medicine. "Through InteliHealth, which is using the latest advances in multimedia, we will be able to maximize the potential of these resources to provide reliable, up-to-date information that will help people everywhere lead healthier lives."

InteliHealth's content database will include authoritative information on hundreds of health-related topics packaged in a wide variety of multimedia formats. For example, consumers will be able to talk with celebrities and experts in chat rooms about topics such as allergy prevention, or listen to breaking radio sound bites on health news of the day. The database will also feature information from the National Institutes of Health and the National Health Council, an umbrella membership organization consisting of 108 health-related organizations. An Exploratorium will present games, quizzes, and other elements designed to appeal to those who want to be entertained while exploring health information.

Johns Hopkins is one of the nation's oldest and best known academic medical centers. Based on a 44-acre campus in downtown Baltimore, The Johns Hopkins Medical Institutions consist of the 107-year-old Johns Hopkins Hospital, consistently ranked one of the best in the nation, along with three health-related divisions of The Johns Hopkins University -- the schools of medicine, nursing, and public health. Hopkins' faculty annually receive more biomedical research support from the federal government than the faculty at any other university. In addition to Hopkins Hospital, The Johns Hopkins Health System includes Johns Hopkins Bayview Medical Center along with satellite clinics, physician networks, and a home care service.

U.S. Healthcare provides managed health care services through its HMOs in Connecticut, Delaware, the District of Columbia, Georgia, Maryland, Massachusetts, New Hampshire, New Jersey, New York, North Carolina, Ohio, Pennsylvania, Rhode Island, South Carolina, and Virginia. The company also provides a variety of other managed health care services to self-insured and other employers, including workers' compensation managed care, coordination and administration of multiple health plans for multi-state employers, and quality measurement and improvement programs and data analysis systems for providers and purchasers of health care.

-- JHMI --
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