UAM closes Medicare Part D business sale for $1.25 billion to CVS Caremark

Universal American Corp. (NYSE: UAM) (the "Company") today announced that it closed the sale of its Medicare Part D business to CVS Caremark (the "Part D Transaction") on Friday April 29, 2011 for a purchase price of $1.25 billion plus excess capital relating to the Part D business.

As previously announced, shareholders as of the close of trading on April 29, 2011 will receive $14.00 in cash and one share of New Universal American ("New Universal American"), a Delaware corporation that will own and operate all of the Company's non-Medicare Part D businesses, including the Medicare Advantage and Traditional Insurance businesses. At the closing, New Universal American was renamed "Universal American Corp." Its shares are listed on the New York Stock Exchange and will trade under the ticker symbol: UAM. Trading in the Company's common stock will cease on the NYSE as of 4:00 p.m. on April 29, 2011 and trading in New Universal American common stock will begin on Monday, May 2, 2011.

Richard Barasch, Chairman and CEO, commented, "This transaction reflects the success of our Medicare Part D business since the inception of the program. We are delighted to deliver a meaningful return to our shareholders, while placing the business in good hands for the benefit of our members."

"We will now focus our energies on right sizing New Universal American, overcoming our regulatory challenges and regaining momentum in our Medicare Advantage business. More than ever, we believe that our Healthy Collaboration^® model, in which we work closely with providers for the benefit of our members, will continue to thrive. We look forward to the future with a great deal of optimism."

As previously announced, the Company completed the sale of $40 million of New Universal American preferred stock. The preferred stock will pay cash dividends at the rate of 8.5% per annum and will be mandatorily redeemable on the six year anniversary of the issue date.