Louisville, Ky. (February 26, 2004) - SHPS Holdings, Inc., a leading health care and employee benefits outsourcing provider in Louisville, Ky., announced today that it has signed an agreement to acquire National Health Services, Inc. (NHS), a Louisville-based provider of care management services. NHS is currently an indirect wholly owned subsidiary of BCE Emergis, Inc., a North American eBusiness company headquartered in Montreal, Quebec.

The acquisition, expected to be complete in early March 2004, brings together two Louisville-based companies with a strong foundation in care management. National Health Services focuses on case, disease, demand, and utilization management for state Medicaid and employee benefits programs, third party administrators, and private employers.

The combined company's 750 clinical professionals include the largest independent employment base of registered nurses working in care, demand, and utilization management.

"We are very excited to welcome National Health Services, its employees and its clients to SHPS," said Dave Nelson, CEO of SHPS "There is a natural synergy between these two companies - a combination that will create a strong national presence in care and demand management. We are also very excited that NHS is located in Louisville. It contributes to the city's position as a vibrant location for national health care companies"

"The acquisition of NHS is a logical step for SHPS, as we grow our health care services, particularly our Medicaid capabilities," added Nelson, "At a time when state governments, including the State of Kentucky, are searching for solutions to challenging Medicaid program spending, we feel confident that SHPS' integrated offerings will provide efficient means to lower costs and enhance the quality of services provided to Medicaid patients."

With the acquisition of NHS, SHPS will provide benefit administration and total population health care management services for more than 900 customers in both the large and mid-size market, including employers, carriers/healthplans and government agencies. As such, SHPS is the only firm in its industry that combines care management and benefits administration into one platform, and one of the few firms with a large government and union client base.

"I have no doubt that SHPS' strong, integrated position in the marketplace and commitment to serving private employers and Medicaid programs will prove to be an asset for NHS' existing clients," said Greg Dykes, President of NHS. "We look forward to expanding and enhancing their current service offerings, as well as contributing to the company's future strategic direction." Error processing SSI file