WC Wellchoice

NEW YORK, Sept. 27 /PRNewswire-FirstCall/ -- The New York Public Asset Fund (the Fund) today announced it has agreed to support the proposed takeover offer of WellChoice Inc. (NYSE:WC) by WellPoint Inc. (NYSE:WLP) for $77.23 per share - a deal that, if completed, will return in excess of $4.8 billion to the citizens of New York based on current valuations. The Fund is WellChoice's largest shareholder with an approximately 62 percent stake and was created by New York State legislation in 2002 to maximize the value of its WellChoice holdings. The Fund's board spent the past several weeks engaged in takeover discussions with both companies and, based on concerns it raised, twice negotiated better terms and conditions, resulting in enhanced incremental value of about $220 million for the citizens of New York, and more than $360 million for all WellChoice shareholders. "Our goal during these negotiations, and throughout the last three years, was simply to deliver nothing short of the best return possible on the WellChoice shares placed in our hands," said Mallory Factor, chairman of the Fund's board. "After careful consideration with our financial and legal advisors, we determined that $77.23 per share offer in combination with carefully negotiated terms and conditions sufficiently achieved that mandate. We are pleased that the actions of the Fund resulted in WellPoint twice improving the terms and conditions, resulting in the consummation of the deal." "The purchase price represents a nearly 50 percent premium above the company's stock price from the beginning of this year and, more importantly, a more than threefold increase above the stock's $25-per share initial public offering value in 2002," Factor said. "I am particularly proud that this board, starting from scratch three years ago and working without any employees, will be able to return proceeds of nearly $5 billion to the citizens for New York ." The New York Public Asset Fund was created in 2002 to receive and hold 95% of the common stock of WellChoice, the parent company of Empire HealthChoice, Inc., a Blue Cross/Blue Shield health insurer converted that year to a for- profit company. Aided in part by an extremely low-cost base (the Fund has no employees and it board members are not paid), the Fund will have returned a total of $4.86 billion since 2002 following the merger, based on trading prices at the close of business on September 26. Sagent Advisors acted as the Fund's primary financial advisor during the negotiations and provided a fairness opinion. The Blackstone Group served as secondary financial advisor and provided a fairness opinion. Sidley Austin Brown and Wood served as the Fund's special legal advisor. DATASOURCE: The New York Public Asset Fund CONTACT: Tom Johnson, Abernathy MacGregor, +1-212-371-5999

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