Dedicated Dental and InterDent Resolve Civil Inquiries Into Medicaid Reimbursements

EL SEGUNDO, Calif.--(Business Wire)--
Dedicated Dental today announced it has reached an agreement with
state and federal agencies regarding allegedly erroneous Medicaid
reimbursements submitted by one of its offices in Bakersfield, CA for
the years 2002-2005.

Under terms of the agreement, Dedicated Dental will repay $364,500
for the erroneous billings and pay another $364,500 as additional
damages. The company also entered into a five-year corporate integrity
agreement with the Office of the Inspector General for the United
States Department of Health and Human Services. Among other things,
this agreement builds on the existing compliance measures in place at
Dedicated Dental and implements new measures designed to promote
compliance with all rules, regulations, and laws. Dedicated Dental is
owned by InterDent Service Corp., which is in turn owned by InterDent
Inc. All three companies are party to the agreement and the corporate
integrity agreement.

While Dedicated Dental and InterDent admit no wrongdoing under the
agreement, the companies remain firmly committed to complying with all
rules, regulations and laws in the office where these allegations
surfaced, and in all of the offices the companies operate.

"This agreement allows Dedicated Dental and InterDent to move
forward, devoting our full attention to providing excellent service in
accordance with applicable rules and regulations," said John
Steinbrun, who was named chief executive officer of InterDent, Inc. in
September 2007. "The new leadership team will maintain the highest
ethical standards and strictest controls in the industry in keeping
with our position as a leader amongst dental management groups."

In addition to requirements spelled out in the agreement and the
corporate integrity agreement, Steinbrun noted that the new executive
team has already put a variety of quality control measures in place.
These measures include:

-- The creation of a new position: a Vice President for Quality
Improvement and Regulatory Affairs, who is in charge of
compliance with Medicaid and other governmental standards

-- Increased employee education

-- Regular audits of Medicaid billings

-- Implementation of an Ethics Hotline emphasizing
non-retaliation and non-retribution for employees who report
potential violations

The company also announced today it plans to close four of nine
Dedicated Dental offices in the Bakersfield area this summer. Because
most patients will be relocated to existing offices, employee layoffs
are anticipated to be minimal.

"The restructuring is intended to better serve our customers and
the community," said Steinbrun. "We are consolidating our offices so
that we can offer patients comprehensive multi-specialty dental care
in newly renovated offices."

Dedicated Dental Services, Inc. (DDSI) is a Knox-Keene licensed
Dental Plan located in Kern County, CA which serves various employer
groups primarily in the Bakersfield area. Dentists practicing in
DDSI's offices also serve the community providing comprehensive,
convenient and high quality general dentistry in addition to dental
specialty services including orthodontics, periodontics, endodontics,
pedodontics, prosthodontics and oral surgery. DDSI is a wholly-owned
subsidiary of InterDent, Inc.

for Dedicated Dental
Jami Warner, 916-761-7699
Stevan Allen, 916-718-2999

Copyright Business Wire 2008