TRUMBULL, Conn., Oct. 28 /PRNewswire-FirstCall/ -- Oxford Health Plans,
Inc. (NYSE: OHP) announced that its Board of Directors has increased the
Company's share repurchase program by an additional $250 million through
December 31, 2004. The Board of Directors also approved the payment of a
quarterly cash dividend of 10 cents per share. The dividend will be payable
on January 27, 2004, to shareholders of record as of January 12, 2004.
"Our business strategies have resulted in a strong market position and
consistently solid cash flows. The initiation of a cash dividend and the
expansion of the Company's stock repurchase program reflect our commitment to
deliver value to our shareholders as well as our confidence in Oxford's
financial strength and future," said Charles G. Berg, Oxford's CEO and
President.
The Company will fund the dividend and the repurchase program from free
cash flow and believes that such funding will have no significant impact on
the Company's ability to execute its long-term growth strategy. During its
repurchase program, the Company does not anticipate decreasing the parent
company's liquidity below $100 million. Stock purchases may be made from time
to time at prevailing prices in the open market, by block purchase, or in
private transactions. The Company has approximately 81 million shares
outstanding as of September 30, 2003. Including today's increase of $250
million in repurchase authority, the Company has approximately $259.6 million
of remaining authority under its repurchase program.
About Oxford
Founded in 1984, Oxford Health Plans, Inc. provides health plans to
employers and individuals primarily in New York, New Jersey and Connecticut,
through its direct sales force, independent insurance agents and brokers.
Oxford's services include traditional health maintenance organizations,
point-of-service plans, Medicare plans and third party administration of
employer-funded benefits plans. More information about Oxford Health Plans,
Inc. is available at http://www.oxfordhealth.com.
Cautionary Statement Regarding Forward-Looking Statements
Certain statements in this press release, including statements concerning
the Company's strategy, financial strength, future share repurchases or
dividends, funding of the quarterly cash dividend and share repurchase
program, impact of dividend payments and share repurchases on the Company's
long-term growth prospects and liquidity, and other statements contained
herein regarding matters that are not historical facts, are forward-looking
statements as defined in the Securities Exchange Act of 1934; and because such
statements involve risks and uncertainties, actual results may differ
materially from those expressed or implied by such forward-looking statements.
Factors that could cause actual results to differ materially include, but are
not limited to:
* Changes in federal or state regulation relating to health care and
health benefit plans, including proposed patient protection legislation
and mandated benefits.
* The state of the economy.
* Rising medical costs or higher utilization of medical services,
including higher out-of-network utilization under point-of-service
plans and new drugs and technologies.
* Competitive pressure on the pricing of the Company's products,
including acceptance of premium rate increases by the Company's
commercial groups.
* Higher than expected administrative costs in operating the Company's
business and the cost and impact on service of changing technologies.
* The ability of the Company to maintain risk transfer, risk sharing,
incentive and other provider arrangements and the resolution of
existing and future disputes over the reconciliations and performance
under such arrangements.
* Any changes in the Company's estimates of its medical costs and
expected cost trends.
* The impact of future developments in various litigation including the
periodic examination, investigation and review of the Company by
various federal and state authorities.
* The Company's ability to renew existing members and attract new
members.
* The Company's ability to develop processes and systems to support its
operations and any future growth and administer new health care benefit
designs.
* Any future acts or threats of terrorism or war.
* Those factors included in the discussion under the caption "Cautionary
Statement Regarding Forward-Looking Statements" in Part I, Item 1, of
the Company's Annual Report on Form 10-K for the fiscal year ended
December 31, 2002, and Part I, Item 2, of the Company's Quarterly
Reports on Form 10-Q for the quarterly periods ended March 31, 2003,
June 30, 2003 and September 30, 2003.
SOURCE Oxford Health Plans, Inc.
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Related links:
http://www.oxfordhealth.com
CONTACT:
Investor - Gary Frazier, +1-203-459-7331, Jon
Green, +1-203-459-6674, or Media - Maria Gordon-Shydlo,
+1-203-459-7674, all for Oxford Health Plans, Inc.
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