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Lycos And HealthAxis.com Announce Exclusive $13 Million Alliance
WALTHAM, Mass. and NORRISTOWN, Pa.--(BUSINESS WIRE)--Aug. 17, 1998
Companies to Offer Full Range of Health Insurance Products and
Services Through Co-Branded Web Site and Prominent Promotions
Throughout Lycos
Lycos, Inc., (NASDAQ:LCOS), "Your Personal Internet Guide," and HealthAxis.com, the pioneer in the electronic distribution of health insurance, today announced a $13 million electronic commerce alliance, making HealthAxis.com the exclusive direct marketer of health insurance on Lycos. Under the terms of the agreement, HealthAxis.com, the online subsidiary of Provident American Corporation (OTC Electronic Bulletin Board:PAMC), formerly Insurion, Inc., and Lycos will develop a co-branded Web site offering individuals and small businesses access to and the ability to purchase a full range of insurance products and services at very competitive prices.
During the initial 15-month term, HealthAxis.com will make guaranteed payments to Lycos of $6.5 million and, provided a certain number of policies are sold, will make additional payments to Lycos of up to $6.5 million during the 12-month renewal term. In addition, Lycos will receive a percentage of advertising revenue and policy sales. HealthAxis.com will receive a guaranteed number of impressions and will be featured prominently on lycos.com through insurance-related search results pages, additional content, banner ads and keyword links.
The fast and easy-to-use co-branded site, with links to it through Lycos at www.lycos.com and through a HealthAxis.com site, www.healthaxis.com, is expected to launch this fall. HealthAxis.com plans to make available to Lycos users a full range of insurance products, including health insurance for individuals and small groups, dental insurance, vision care insurance, prescription coverage, critical care and long-term care insurance. HealthAxis.com also plans to provide product and health information, instant price quotes, online billing, claim status, and policy or personal information changes and a 24-hour customer hotline.
HealthAxis.com has partnered with HealthPlan Services (NYSE:HPS), the nation's largest third-party administrator, to ensure the best quality of service and the best, highly individualized, technological support for the interactive sites. HealthAxis.com customers will have access to the largest directly contracted PPO network in the nation with approximately 270,000 physicians and 3,100 hospitals through Provident's alliance with First Health Group (NASDAQ:FHCC).
"Insurance sales last year for health related policies were $150 billion and the online projections and potentials are enormous," said Jeff Crown, vice president of business development at Lycos. "Online insurance sales is a natural fit because everything the consumer needs to make an informed purchase decision is right at their fingertips. Lycos is leading the industry by working with HealthAxis.com to provide our users with the best and most cost-effective health insurance on the Web."
"Lycos users are the ideal target market for HealthAxis.com," said Michael Ashker, president and CEO of HealthAxis.com. "Teaming with Lycos on this co-branded site is a significant step in our strategy to become the leading online provider of health insurance and services to the small group and individual markets. By leveraging the power of the Internet as a sales channel, HealthAxis.com will be able to deliver high standards of quality and reliability - at very competitive prices and in the most convenient way."
About HealthAxis.com
HealthAxis.com, a subsidiary of Provident American Corporation, is the pioneer in the electronic distribution of health insurance to the individual and small group markets. Through its interactive, user-friendly Web site, healthaxis.com, to be launched in Fall of 1998, HealthAxis.com will provide customers with access to and the ability to purchase a full range of high quality, flexible insurance products and services at very competitive prices.
About Lycos, Inc. (http://www.lycos.com)
Founded in 1995, Lycos, Inc. (NASDAQ:LCOS) is a New Generation Online Service that combines all aspects of community, leading Web navigation resources and cutting-edge business and consumer e-commerce solutions. Located at lycos.com, Lycos - "Your Personal Internet Guide" - is the hub of the Lycos network dedicated to helping each individual user locate, retrieve and manage information tailored to his or her personal interests. Through its acquisitions of Tripod, Inc. and WhoWhere, Inc. in 1998, the Lycos network has become the most full-featured community-oriented online service on the Internet. Today, the Lycos network includes lycos.com, tripod.com, angelfire.com, whowhere.com and mailcity.com. Headquartered near Boston in Waltham, Mass., Lycos maintains U.S. offices in New York City, Pittsburgh, Dallas, Los Angeles and San Francisco. International offices are located in Germany, Italy, France, Japan, the UK, Spain and The Netherlands.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Certain statements made by the Companies which are not historical facts may be considered forward-looking statements, including, without limitation, statements as to trends, management's beliefs, expectations and opinions, which are based upon a number of assumptions concerning future conditions that ultimately may prove to be inaccurate. Such forward-looking statements are subject to risks and uncertainties and may be affected by various factors which may cause actual results to differ materially from those in the forward-looking statements. For further information which could cause actual results to differ from the Companies' expectations as well as other factors which could affect the Companies' financial statements, please refer to the Companies' reports filed with the Securities and Exchange Commission.
(c) 1998 Lycos, Inc. All rights reserved. Lycos(R) is a registered trademark of Carnegie Mellon University. All other product or service marks mentioned herein are those of respective owners.
CONTACT:
Lycos, Inc.
Michele Perry, 781/370-2678
mperry@lycos.com
or
Schwartz Communications for
Lycos, Inc.
David Resnic, 781/684-6520
dresnic@schwartz-pr.com
or
HealthAxis.com
Deidre Holt, 610/275-3800
deidreh@earthlink.net
or
Robinson Lerer & Montgomery
for HealthAxis.com
Kate Novack, 212/484-7799
knovack@rlmnet.com
KEYWORD: PENNSYLVANIA MASSACHUSETTS
BW1083 AUG 17,1998
5:24 PACIFIC
08:24 EASTERN
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