News Release

(OAKLAND COUNTY, MI) American Family Care and Good Health Michigan will unite under a new banner--Molina Healthcare of Michigan, Inc. on October 1, 2000.

This name change represents the complete integration of the two plans as a single affiliate of Molina Healthcare, Inc., a closely held company based in Long Beach, California. Molina Healthcare, Inc. also has subsidiaries in California, Utah and Washington.

Molina Healthcare, Inc., the parent company, has a 20-year history of providing quality health care for publicly funded and other specialized programs to families and children. In addition to these programs, Molina also offers a commercial health plan in California and a third-party administration plan in Utah. Total nationwide membership is about 270,000.

As a successful bidder in the recent Medicaid Request for Proposal (RFP) re-bidding process, Molina Healthcare of Michigan has been awarded a new two-year Medicaid contract as well as a license to operate as a Michigan Health Maintenance Organization (HMO).

In Michigan, Molina is committed to serving counties of the Lower Peninsula and Detroit-area. To deliver efficient services, the company relies on a statewide network of rural health clinics, local community physicians, and physician-hospital organizations. Company headquarters are located in Oakland County.

According to Mike Graham, Michigan CEO, "This combination of urban and rural service areas makes Molina Healthcare of Michigan a unique and comprehensive health plan."