1. Ed Feaver Prescription Solutions President & CEO.…a health and consumer services company making people’s lives better Pharmacy Management: Prescription Solutions

2. 2 Historical Perspective PacifiCare-centric PBM which provided fully integrated services to PacifiCare and unaffiliated external accounts Minimal focus on external growth Exceptionally tight formulary management capability which supports aggressive cost management, purchasing and rebate strategy

3. 3 More than a PBM A pharmacy and medical management company –Making the connection between pharmacy benefits and medical utilization –Focused on providing the best clinical outcome at the lowest possible cost

4. 4 Vision/Goal The vision is to be nationally recognized as one of the top five Pharmacy and Medical Management companies (Pharmaceutical Services Company) by 2006.

5. 5 Key Statistics FY2001 Claims –65M claims processed –50M claims paid –4.2M mail service claims Call Centers –15,000 calls/day –750,000 Prior Authorization requests Contracting –$1.9B of annual drug purchases –$230M of annual rebates –54,000 pharmacies in network 750 employees

6. 6 1997 1998 1999 2000 2001 2002 Financial Highlights (est.)

7. 7 Product Strategy Focused around market segment –Product efforts targeted by segment Managed Care Organizations / Health Plans Employers Taft-Hartley / Union Trust Funds Government Consumers Pharmaceutical Manufacturers Non-profit Organizations

8. 8 Select Products by Market Segment

9. 9 Sales Strategy Segment Strategies –MCOs Competitive on transaction-based commodity services then identify vertical sales opportunities once clients are on board –Employers/TPAs Leverage relationships with consulting practice leaders Joint Venture Opportunities Evolution from PacifiCare-Centric –Network Enhancement Strategy –Formulary and Rebate Strategy –Pricing Strategy

10. 10 Membership Projections

11. 11 2001 Client Mix: PHS v. Non-PHS 2004 Client Mix: PHS v. Non-PHS 25% 75% Client Mix Change

12. 12 Pharmacy and Medical Management