HANOVER, Md., July 13, 2004 (PRIMEZONE) -- Humana Trans Services Holding Corporation (OTCBB:HTSC) (http://www.humanaservices.com), a firm principally engaged in employee leasing and recruitment services, announces that it has agreed to enter into a management agreement with Lorimar Home Care & Staffing Services, Inc. of Old Forge, Pennsylvania. Humana and Lorimar previously entered into a Memorandum of Understanding to purchase the common stock of Lorimar. Upon the two firms investigating that opportunity they have agreed to work together exploring parallel paths.
This management agreement would allow for the two companies to work together providing their services to the Northeastern Pennsylvania market through Lorimars' customer base. This venture will also allow for a trial period of operations to evaluate the possibility of revisiting the proposed transaction as it was originally intended.
Humana will continue all of the services it currently provides including but not limited to payroll processing, applications, benefits administration, workers compensation coverage, and will add the additional services of payroll financing, lines of credit, use of office space and conference areas for interviews, training, billing, phone, and internet access. This arrangement will also provide access to additional benefit products currently offered by and to be offered by Humana including but not limited to benefits programs, and marketing efforts. Humana expects the revised transaction will result in an increased administrative fee to Humana, which is considerably greater than Humana's current average client charges.
Lorimar will continue to operate independently of Humana while using Humana's strength to allow current market growth, the ability to possibly assume larger contracts, and a larger territory.
Lorimar is a staffing company in the healthcare field. It is currently a client of Humana. The operations of Lorimar are similar to Humana's Maryland Operations, which typically have higher gross profit than standard PEO service companies. Lorimar operates in the Northeast Pennsylvania area, which they believe is the second fastest growing retirement area, only to Florida. Accordingly, the need for health care staffing should remain strong in the future.
About Humana Trans Services Holding Corporation
Established in 2001, Humana is a fully reporting, publicly traded company listed currently on the over-the-counter (OTC) market under the symbol "HTSC". The company is primarily engaged in employee leasing and recruitment services in five states and maintains its corporate offices in Hanover, MD, with operations in the Northeast and Florida. HTSC currently provides human resource (HR) outsourcing principally to the transportation industry and to leading Fortune 500 companies including Cardinal Health, Penske Logistics and Royal Ahold.
Safe-Harbor Statement
Certain statements in this communication constitute "forward-looking" statements that involve a number of known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from any results, performances or achievements express or implied by such forward-looking statements. Undue reference should not be placed on these forward-looking statements, which speak only as of the date thereof. We undertake no obligation to update any forward-looking statements.