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LifeMasters Acquires Medical Scientists, Inc.

- Leading Disease Management Company adding Predictive Modeling to Leverage Proprietary Software Suite to Further Improve Health Outcomes and Reduce Costs -

Irvine, CA and Boston, MA - April 21, 2004 - LifeMasters Supported SelfCare, Inc., one of the nation's largest disease management organizations, today announced the acquisition of Medical Scientists, Inc., the leader in predictive modeling technology.

Predictive modeling is the science of determining which individuals and groups will develop health problems and at what cost to their health care plan or employer.

LifeMasters will integrate Medical Scientists' predictive modeling software products, MediSaveŽ, and HybridAI into its market-leading technology platform. LifeMasters' Active Intervention ModelSM (AIMSM), introduced last fall, aggregates and analyzes information from all available databases -- claims, administrative, clinical, and self-reported -- to identify gaps in recommended care and facilitate the delivery of individually customized, evidence-based intervention plans focusing on the specific health needs of each participant across an entire population. Adding sophisticated, science-based predictive modeling capabilities to its platform will enable LifeMasters to further refine selection to focus the right resources on the right person at the right time to improve outcomes and maximize return on investment.

Medical Scientists will operate as a wholly-owned subsidiary of LifeMasters, continuing to provide consulting services to various health care organizations. Medical Scientists offers a unique array of expertise, combining physicians, statisticians, epidemiologists, financial analysts and programmers with its comprehensive suite of predictive modeling tools to focus on each customer's specific business needs. Medical Scientists' offices will move to LifeMasters' South San Francisco location.

"Our companies share the vision of combining advanced technology with clinical knowledge to improve health outcomes. During the ten years that LifeMasters has been developing and deploying market-leading disease management programs, Medical Scientists has been focusing their efforts on developing market-leading predictive modeling capabilities" said Christobel Selecky, LifeMasters CEO. "The combination of our complementary product offerings will enable our company to provide even greater returns on investment for our customers and enhanced customization for our program participants and their physicians" she added.

Charles M. Gustafson, CEO of Medical Scientists, Inc., said, "Both Medical Scientists and LifeMasters have long been focused on improving health outcomes while reducing costs. Chris and her team have done a tremendous job in establishing LifeMasters at the head of the class in an exciting and growing industry and we're eager to join forces to help drive disease management towards a bright future."

Medical Scientists' Hybrid product is a customized predictive modeling solution that utilizes proprietary artificial intelligence technology to identify those individuals who are likely to experience costly health problems in the future. To make these informed predictions, Hybrid uses neural networking, genetic algorithms, decision trees and other machine learning technologies to perform millions of calculations, and incorporates HIPAA compliant medical and pharmaceutical data with clinical health information, census data and demographic information to produce client specific rule sets/algorithms that answer a specific business problem. The customized predictive model produced by Hybrid is then used to develop health care regimens for those individuals that may become ill - offering them the chance to prevent serious and costly medical procedures.

MediSave forecasts are driven by both biological data and a national claims database, enabling health plan customers to estimate the direct and indirect savings produced by improving a disease's treatment among the plan's or employer's members. MediSave technology is more comprehensive and reliable than other standard methods of predicting medical costs in that the software does not depend upon historical expenditures, but rather on epidemiology and projections of how future illness will be treated. Additionally, MediSave is powerful enough to forecast the clinical and financial impact that potential interventions -- such as new medical technologies, disease management programs, pharmaceutical compliance, etc. -- will have upon an organization's at-risk population.

About Medical Scientists, Inc.
Founded by Harvard-trained physicians in 1992, Medical Scientists is the visionary leader in predictive modeling software that combines both biological science and advanced technology to provide customers with the tools and information to reduce costs and improve health outcomes. Medical Scientists' world-class roster of healthcare and corporate clients all rely on the power of the company's predictive modeling software products to better serve their members and to reduce the costs associated with health care management. Additional information about Medical Scientists can be found at www.medicalscientists.com.


For More Information Contact:
Denise Apcar
LifeMasters, Inc
(650) 829-6217
pr@lifemasters.com
 
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