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Clear Choice Health Plans Reports Revision of Earnings During 2006 First and Second Quarters

Posted on: Wednesday, 20 September 2006, 21:00 CDT

Central Oregon Independent Health Services, Inc. ("Clear Choice Health Plans") announced today that based on a review by management of its 2006 first and second quarter financial statements, the Company will report the following adjustments for the six months ended June 30, 2006: a reduction in total revenues for this period of approximately $ 1.3 million, an increase of expenses of approximately $1.7 million resulting in a reduction of pretax earnings for this period of approximately $3 million and a reduction for this period of approximately $1.8 million in net income for the six months ending June 30, 2006. As a result of these adjustments, the Company will report total revenues of approximately $80.2 million, net income of approximately $5 million and simple earnings per share of approximately $2.75.

In connection with its review, management is reviewing and assessing the adequacy of its internal controls and procedures surrounding financial reporting and plans to take remedial action as necessary to address these issues. Upon the completion of its review management expects to issue restated, unaudited financial statements for the first and second quarters of 2006.

The company is very pleased to announce that it has selected Perkins & Company, P.C., an independent member of the BDO Seidman Alliance, as its new audit firm. Perkins & Company, P.C. is one of Oregon's largest locally owned accounting firms and is headquartered in Portland, Oregon.

About Clear Choice.

Clear Choice Health Plans emphasizes access to care with a full panel of physicians and hospitals, customer-focused service, and comprehensive health insurance coverage. The company currently offers a variety of Medicare Advantage plans and commercial health plans to individuals and families throughout Central Oregon, Eastern Oregon, and the Columbia Gorge, as well as group plans and administrative services to employers throughout the state of Oregon.

Safe Harbor statement under the Private Securities Litigation Reform Act of 1995: Certain of the above statements contained in this press release, are forward-looking statements that involve a number of risks and uncertainties. Such forward-looking statements are within the meaning of that term in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Act of 1934, as amended. The words "believe,""estimate,""expect,""intend,""anticipate,""plan,""appears,""will," and similar expressions and variations thereof identify certain of such forward-looking statements, which speak only as of the dates on which they were made. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those indicated in the forward-looking statements as a result of various factors. Readers are cautioned not to place undue reliance on these forward-looking statements.

Source: Business Wire

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