The Vitality Group to Market One-of-a-Kind Health Enhancement Program Throughout...

Tue Jul 15, 2008 10:36am EDT

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The Vitality Group to Market One-of-a-Kind Health Enhancement Program Throughout North America

      The Only Plan to Guarantee a Positive Return on Investment
CHICAGO--(Business Wire)--
Eleven years after introducing the Vitality(TM) incentive-based
health enhancement program, South Africa-based Discovery Holdings
Limited (Discovery) today announced formation of a new company that
will market the plan to employers in the U.S. and Canada. With more
than 1.5 million members worldwide, Vitality stands alone as the only
program to guarantee a positive return on investment.

   According to Adrian Gore, Chief Executive Officer of Discovery,
"the new corporation, The Vitality Group, will expand on Discovery's
global leadership which already covers thousands of clients in the UK
and South Africa including Bloomberg, Citibank, Coca-Cola, Dell,
Goldman Sachs, IBM, Kraft, McDonalds, Microsoft, MTV, Nike, Oracle,
and Samsung."

   "Our holistic approach, based on customized incentives and robust
rewards for healthy lifestyles, has helped thousands of employers
control healthcare costs and increase the productivity of their
workforce," said Arthur Carlos, Chief Executive Officer for The
Vitality Group. "We are in a position to expand our offering across
the U.S. and Canada with confidence due to our long history of
delivering a positive return on investment in the form of productivity
increases and healthcare claim savings."

   According to Carlos, "our extensive experience gives us confidence
that substantial healthcare claims savings will be generated when
employees engage in Vitality. As a result, Vitality is able to offer a
very rich set of rewards to employees, with the knowledge that the
cost of the incentives will be more than offset by healthcare claim
savings. In fact, we believe so strongly in our model that we will
guarantee that claim savings will exceed reward costs - if they don't,
The Vitality Group will pay for the excess reward cost."

   "What's just as important to the bottom line," Carlos said, "is
the reduction in 'presenteeism' - when workers are on the job but not
fully functioning because of illness or medical conditions. According
to a Harvard Business Review study, for every $1 you save on direct
medical costs you can save an additional $3 from reduced presenteeism,
absenteeism and disability costs."

   Stuart Slutzky, The Vitality Group's Chief Marketing Officer, said
a number of qualities differentiate Vitality from the crowd:

   --  Vitality Age(TM) provides each member with a scientifically
        calculated representation of their risk-adjusted, or "true",
        age and allows the member to easily understand how their
        current behaviors are impacting their health.

   --  Personal Pathway(TM), based on a member's individual risk
        profile, is a customized set of activities and goals that will
        assist them in improving their health. It provides a
        verifiable and clinically sound mechanism to track and reward
        over 30 health-related activities including losing weight,
        stopping smoking, exercising, and receiving routine preventive
        care, such as a prostate exam or mammogram.

   --  The program is non-discriminatory, meaning that whether an
        employee is sick or well, it can be customized with goals and
        activities that generate significant rewards. This
        personalized approach successfully addresses the fact that the
        factors impacting healthcare costs for a young and healthy
        individual are different than for a person who is older and
        has a chronic illness.

   Slutzky said that the range of rewards offered through the program
are broad and deep.

   "While some people like frequent, low-cost rewards, such as movie
tickets or music downloads, others favor building up to more
substantial items such as large-screen TVs or vacation packages," he
said. "We offer a very broad set of rewards, because when you are
trying to motivate an employee population, it is important to be
flexible to meet the membership's different needs or drivers."

   Slutzky noted that because Vitality was developed by an insurance
company (Discovery) that underwrites the health insurance risk, a lot
of hard data was collected to ensure the right balance between the
level of incentive that was provided and the healthcare savings
achieved.

   "Healthier employees tend to be more productive, less stressed and
happier in their jobs," he said. "Our company has 11 years of
experience in proving that compared to the cost of the program, which,
including rewards and administration, averages less than two percent
of an employer's healthcare costs, the total ROI will surprise even
the most optimistic client."

   About The Vitality Group

   The Vitality Group is a member of Discovery Holdings Limited, a
publicly traded company with over $3 billion in annual revenues. The
Vitality Group has forged partnerships with some of the most respected
and recognized names in the health and wellness field to help extend
the reach of Vitality. Members of Vitality enjoy robust perks through
partnerships with Polar, Life Time Fitness, Curves and other regional
and local fitness facilities.

   Vitality is offered to over 1.5 million members across the United
States, United Kingdom and South Africa. Early adopters in the United
States include Alcon, AOL, Aspirus, General Growth Properties, and
Lenovo. Clients in the UK and South Africa include Bloomberg,
Citibank, Coca-Cola, Dell, Goldman Sachs, IBM, Kraft, McDonalds,
Microsoft, MTV, Nike, Oracle, and Samsung.

The Vitality Group
Eileen Rochford, 773-463-2480
Cell: 312-935-3305
eileenr@theharbingergroup.com

Copyright Business Wire 2008
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