USIH Usi Hldgs Corp (MM)

USI Holdings Corporation (NASDAQ: USIH) today announced the acquisition of Foothill Ranch, CA-headquartered, Tandem Benefits. The acquisition is expected to contribute approximately $8.8 million in revenue to USI on an annual basis. Terms of the transaction were not disclosed. Tandem Benefits, a benefits communications and enrollment solutions provider, will become the Western Region Service Operation for Univers Workplace Benefits (Univers), USI's benefits communication and enrollment division. With the addition of Tandem Benefits, Univers further solidifies its role as the largest independent provider of this specialized type of service in the insurance brokerage industry. Commenting on the acquisition, David L. Eslick, Chairman, President & CEO, USI Holdings Corporation, said, "The acquisition of Tandem strengthens our position as the market leader in workplace benefits communication and enrollment services. The company's location will enable us to deliver local and regionalized service closer to our customers in the Western region. The completion of this acquisition reaffirms our commitment to our long-term goals - client retention, diversification of revenues and the continued development of a single source for the highest quality products and services." Jeff B. Graves, Principal, Tandem Benefits, commented, "We are pleased to join Univers and ensure that our clients will continue to receive best in class solutions while maintaining personalized service by our team of committed and knowledgeable professionals. We look forward to working with Greg Morano and the rest of the highly respected Univers team." Gregory J. Morano, CEO of Univers Workplace Benefits added, "Tandem provides the perfect opportunity to expand our geographical service model and is the logical next step in our ongoing expansion strategy. Tandem's marketplace experience and marketing capability will integrate well with our service and technology model. I have long admired the success Scott and Jeff have achieved in the Western region and we couldn't be more excited to have them, and their team, join us." D. Scott DeGraw, Founding Principal, Tandem Benefits, said, "Since 2001, it has been Tandem's mission to address employers' benefit challenges and raise the standards for enrollment and communications. Joining Univers will enable us to continue providing our clients with the level of service that they have come to expect and at the same time increase our technology and service offerings." Tandem Benefits will be known as Univers Workplace Benefits, Western Region Division, effective 8/1/2006. This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," "will" or words of similar meaning and include, but are not limited to, statements about the expected future business and financial and operating performance of USI resulting from and following the acquisition. These statements are based on management's current expectations and are inherently subject to uncertainties and changes in circumstances. Detailed information about the factors that could cause actual results to differ materially from those described in the forward-looking statements is contained in USI's filings with the SEC. Some of those factors include matters analyzed in the due diligence process, material adverse changes in the clients of the acquired company, and substantial delay in the expected closing of the transaction. All forward-looking statements included in this press release are made only as of the date of this press release, and USI does not undertake any obligation to publicly update or correct any forward-looking statements to reflect events or circumstances that subsequently occur or of which USI hereafter becomes aware. About USI Holdings Corporation Founded in 1994, USI is a leading distributor of insurance and financial products and services to businesses throughout the United States. USI is headquartered in Briarcliff Manor, NY, and operates out of 68 offices in 18 states. Additional information about USI may be found at www.usi.biz .