PacifiCare Health Systems / Cypress

Nature of business: Owns and operates health maintenance organizations Total employees: 2,793 In Orange County: 2,098 Stock listing in The Times: On NASDAQ “PacifCa” Ticker symbol: “PHSY” Friday’s stock close: $31.50 One-week change: Down $0.50 *

Analyst review: “In our opinion, Pacificare is one of the nation’s best managed and best-positioned HMOs. The company is benefitting from the national trend among corporations to find more cost-effective alternatives to their health-care benefit programs. It has consistently generated 30%-plus enrollment in its Secure Horizons program and solid internal commercial enrollment growth of 6-9% annually. Fourth quarter results are due out soon and we are predicting earnings per share of $2.15, up from $1.78 last year.” Todd B. Richter, analyst Dean Witter Reynolds Inc, New York

Revenue and Profit

Dollar amount in millions

1992 1993 1990 1991 1992 3 quarters 3 quarters Revenue 976 1,242 1,686 1,232 1,616 Profit 43.6 25.7 17.6 31.5 45.6

Corporate outlook: “We are an organization of dedicated people committed to improving the quality of those lives we touch. Pacificare Health Systems plans to continue its strategy of controlled regional growth, with an eye always focused on being the market leader in whatever area it serves. We also plan to increase our emphasis on preventive care and wellness-oriented programs designed to help memebers stay healthy and enhance their quality of life.” -- Alan Hoops, president/CEO RETURN ON INVESTMENT: 3-YEAR SUMMARY AND YEAR-TO-DATE:

Fiscal year ended Dec. 31 Dec. 31 Dec. 31 2 qtrs. 1990 1991 1992 1992 52-week high $30.38 $42.50 $62.50 $62.50 52-week low $12.00 $12.50 $21.50 $21.50 Book value per share $3.02 $4.29 $7.96 $8.29 Price per share $14.75 $21.75 $38.00 $29.00 Net earnings (loss) per share $0.74 $1.10 $1.78 $1.31 Price-to-earnings ratio 20:1 20:1 21:1 22:1 Avg. return on investor equity 58% 26% 8.8% 16%

Fiscal year ended 2 qtrs. 1993 52-week high $57.50 52-week low $25.50 Book value per share $10.97 Price per share $38.00 Net earnings (loss) per share $1.64) Price-to-earnings ratio 23:1 Avg. return on investor equity 15%

For more information call or write, PacifiCare Health Systems: 5995 Plaza Drive, Cypress, CA 90630-5028. (714) 952-1121 Source: PacifiCare Health Systems; Bloomberg Business News. Researched by JANICE L. JONES / Los Angeles Times