MEDIA RELEASE

MERGER - LATROBE HEALTH SERVICES AND FEDERATION HEALTH

4 July 2005

Dear Member

This advise is to inform you of recent developments within your private health insurance fund.

As you may be aware Federation Health (a Gippsland based health fund) has been managed under Administration since 14 December 2004. On the 17 March 2005 the Private Health Insurance Administration Council (PHIAC) announced that Federation Health would seek Federal Court approval to merge with Latrobe Health Services.

I am pleased to advise that effective from 4 July 2005, the Federal Court has given approval for Latrobe Health Services and Federation Health to merge.

The merged entity will be known as Latrobe Health Services and will continue to operate from the Latrobe Valley retaining its strong regional presence.  All existing Latrobe and Federation Health insurance branded products will be retained so it will be business as usual for members.

Latrobe Health Services is in a strong financial position and the merger with Federation Health has further strengthened this position as the largest local provider of health insurance services in the Gippsland region.

Latrobe Health Services is a financially strong and secure health fund that has been established since 1950 and the merger further strengthens our commitment to the Victorian regional market and, in particular, the Latrobe Valley and greater Gippsland region.

The Latrobe Valley based medical clinics will continue to operate as usual and it is intended that the clinics will in the future be more closely aligned with Maryvale Private Hospital.

The merged entity is in a strong position to build on the common heritages of the two community focused health funds and we believe the merger decision is an excellent outcome for members.  We are now commencing the process of bringing together these two organisations in a way that will deliver a seamless transition for the members in a manner which demonstrates our commitment to customer service and value for money.

Click on this link to view responses to some of the most frequently asked questions

Should you seek further information please do not hesitate to call our member service staff on 1300 362 144 (Latrobe branded products 1300 362 144) and freecall 1800 636 082 for Federation branded products.

Yours sincerely,

Bruce Beatson
Chief Executive Officer
Latrobe Health Services