LifeOne Releases Unprofitable Subsidiary to Improve Future Earnings
NORTH BETHESDA, Md.--(BUSINESS WIRE)--June 11, 1999--
Adds First Internet Professional to Board
LifeOne, Inc., (OTCBB: LONE), (the "Company"), announced today that it has taken an additional step in its revised business plan to accelerate shareholder value by choosing not to invest more resources into its subsidiary, National Affiliated Investors Life Insurance Company (NAIL). The Company reached an agreement with the Louisiana Insurance Commissioner to the entry of a voluntary rehabilitation judgment for NAIL.
Brent Chapel, CFO of the parent company, said, "We have chosen to direct Company resources to operations that hold much greater promise of high investment returns to our shareholders. It's clear that the recently overturned involuntary bankruptcy petition filed against LifeOne by Black Sea and others has done irreparable harm to the subsidiary in its ability to reestablish a solid course of profitability."
In August 1998, an involuntary bankruptcy suit was filed against LifeOne, which was dismissed on May 4, 1999. The dismissal is on appeal by Black Sea to the United States Court of Appeals for the Fifth Circuit. LifeOne believes that this improperly filed involuntary bankruptcy petition triggered significant regulatory controls which resulted in forcing substantial additional regulatory costs on NAIL, the wholly-owned subsidiary, and which inhibited NAIL from pursuing its plan for new ERISA stop-loss business.
The Company had previously released components of its revised business strategy, (see Company news releases March 18, 1999 and June 2, 1999), which incorporates reverse-merger spinouts of internet companies. Ben Wall, chairman of LifeOne said, "We have added the first of several internet professionals to the LifeOne Board of Directors. Ms. Katrina Montinola has high-level internet experience and will help direct the selection of and course for internet reverse mergers. Ms. Montinola has advanced internet technical experience having served in several senior technical positions with Oracle Corporation, and directed the creation of PointCast's corporate suite of products. She also has senior management experience, much of it in the volatile and fast-paced product development arena. We are very pleased at her acceptance."
LifeOne is also strengthening its insurance acquisition strategy. The Company has been recruiting key insurance professionals to manage LifeOne's insurance acquisition growth, several of whom have been assisting LifeOne in reviewing workmen's compensation and annuity companies.
Certain statements in this release may constitute "forward looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. Certain but not necessarily all of such forward looking statements can be identified by the use of such words as "believes," "projects," "expects," "may," "will," "should," or "anticipates," or other variations or by discussions of strategies involving risk uncertainties. The actual results of LifeOne, Inc. or industry results may be materially different from any future results expressed or implied by such forward looking statements.
CONTACT:
LifeOne Inc., North Bethesda
Brent Chapel, 301/984-0800
KEYWORD: MARYLAND
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