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Discovery Holdings Limited - News Release From Discovery

Release Date: 04/10/2004 12:22
Code(s): DSY
Wrap Text

Discovery Holdings Limited - News Release From Discovery DISCOVERY HOLDINGS LIMITED (Incorporated in the Republic of South Africa) (Registration number : 1999/007789/06) ISIN : ZAE000022331 Share Code : DSY NEWS RELEASE FROM DISCOVERY 4 October 2004 Discovery"s UK health venture kicks off three months ahead of schedule PruHealth, the UK private medical insurance (PMI) joint venture between Discovery Health and the Prudential, has had its launch brought forward to today (4 October 2004), a full three months ahead of schedule. The quicker-than-expected completion of the building of infrastructure, product development and product design and the granting of a licence to operate by the Financial Services Authority (FSA), has allowed PruHealth to launch a full three months ahead of schedule. PruHealth will for the first time take the concept of consumer driven healthcare to the UK market. The concept has driven Discovery Health"s considerable growth in the South African market over the last decade, making the Discovery Health Medical Scheme the largest open medical scheme, with over 1.6 million members. PruHealth will be offering excellent incentives for members. Members who make an effort to improve their health will receive up to 100% of their unused premium in the first year off the cost of the following year"s cover. Even those who do nothing to improve their health will get 25% of their unused premium back. The Vitality concept, which underpins the Discovery Health offering, will take centre stage with PruHealth. Vitality points will be earned for a range of activities, such as going to the gym, going for screenings, improving health education and reducing smoking. PruHealth has already signed up as partners Cannons Health & Fitness Club and Holmes Place, two of the leading gym networks in the UK. Members will gain a subsidy of up to 60% on gym membership. PruHealth members can also earn Vitality points through other Vitality partners, including BUPA Wellness and the Diagnostic Clinic, which offer health assessments; HCA, a large private hospital group in London, which offers health screenings for members; and Active Europe, an online sports registration service whereby members can enter marathons, cycle races and other sporting events. The consumer-driven healthcare concept has also been successful in key US regional markets, under the banner of Discovery"s US subsidiary, Destiny Health. Almost 40 000 members in the Chicago land area are now benefiting from medical cover that rewards measures to improve their health, with more than 2000 joining per month. Now that concept is ready to take the UK market by storm. Currently 6.7 million Britons are members of private medical schemes or 11% of the total population. Existing private schemes in the UK make no allowances for members" attempts to adopt a more healthy lifestyle, nor are claims histories taken into account in calculating premium increases. Over the past ten years the average premium in the UK has more than doubled. Research carried out by TNS in the UK on behalf of PruHealth found that 69% of people who pay for their own medical insurance would be interested in a scheme that offered lower premiums as a result of measures taken to improve their health. 60% of those whose health insurance is paid for by an employer said they would like their PMI provider to take more interest in their health and wellbeing, while 47% said they would join a gym if doing so led to lower premiums. "PruHealth is a fairer and more progressive approach to private medical insurance which will open up cover to a broader range of people and business," said Catherine McGrath, PruHealth chief executive. Discovery CEO Adrian Gore said: "We are excited to be entering the UK market and believe our product structures will make a significant impact in terms of providing UK consumers with health care cover that takes account of their health management." PruHealth"s offerings will be sold direct to the consumer or through independent financial advisers to small and medium enterprises. (Ends) Background Information on PruHealth: PruHealth is a 50:50 joint venture between Prudential UK and Discovery Holdings of South Africa. The venture was announced to the South African market in April 2004 and the two companies announce their entry into the UK private medical insurance market today (4 October). The company has bases in London and Johannesburg. Back office support is being provided in South Africa. PruHealth is headed by Catherine McGrath, who until recently ran Pru"s direct-to-consumer operation. The management board is chaired by Adrian Gore (CEO of Discovery) consisting of Roger Ramsden (Marketing Director of Pru UK) and Tim Tookey (Finance Director of Pru UK), Shaun Matisonn (Discovery) and Sir Andrew Foster (ex COO of the NHS). PruHealth will energise the UK PMI market with a more progressive and more enlightened approach to private healthcare. Its philosophy is to reward people who make efforts to lead a healthy life with low premiums. Policyholders will be able to reduce the cost of their health insurance in a variety of ways such as annual health assessments, joining a gym or giving up smoking. (Ends) Issued by: Beachhead Media & Investor Relations Lynette Lambert: 011 214 2406 / 084 580 2402 / lynette@bmsa.co.za Patrick Lawlor: 011 214 2410 / 082 459 6709 / patrick@bmsa.co.za Sheri Fine: 011 214 2414 / sheri@bmsa.co.za On behalf of: Discovery Health Enquiries: Adrian Gore, CEO, Discovery, (011) 529 2800 Sponsor RAND MERCHANT BANK (A division of FirstRand Bank Limited) CORPORATE FINANCE Date: 04/10/2004 12:22:47 PM Supplied by www.sharenet.co.za Produced by the JSE SENS Department

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