SIE Sierra Health Svcs

Sierra Health Services Inc. (NYSE: SIE) today announced that it has amended its $140 million credit facility, previously set to mature on Dec. 31, 2009. The amendment will increase the credit facility to $250 million and extend the maturity date to June 26, 2011. The borrowing rate on drawn funds has been reduced to LIBOR + .75% and the facility fee on undrawn funds has been reduced to .15% under the amended facility. The rate on drawn funds and the facility fee on undrawn funds can be further reduced to LIBOR + .5% and .1%, respectively, subject to Sierra meeting certain debt ratings. The credit facility continues to be available for general corporate purposes, including share repurchases. There continue to be no limits on share repurchases, provided the company meets the required leverage ratio. This marks the third increase on an original facility of $65 million secured in March 2003. The facility was increased to $100 million in October 2004 and to $140 million in June 2005. Banc of America Securities LLC is serving as the sole lead arranger and book manager under this amended credit facility. The lenders include, among others, Bank of America, N.A., as administrative agent and U.S. Bank, N.A. and Calyon New York Branch as syndication agents. Documentation agents include The Bank of New York, JPMorgan Chase Bank, N.A., Harris, N.A. and Wells Fargo Bank, N.A. Sierra Health Services Inc., based in Las Vegas, is a diversified health care services company that operates health maintenance organizations, indemnity insurers, preferred provider organizations, prescription drug plans and multispecialty medical groups. Sierra's subsidiaries serve nearly 800,000 people through health benefit plans for employers, government programs and individuals. For more information, visit the company's Web site at www.sierrahealth.com. Statements in this news release that are not historical facts are forward looking and based on management's projections, assumptions and estimates; actual results may vary materially. Forward-looking statements are subject to certain risks and uncertainties, which include but are not limited to: 1) potential adverse changes in government regulations, contracts and programs, including the Medicare Advantage program, the Medicare Prescription Drug Plan, Medicaid and legislative proposals to eliminate or reduce ERISA pre-emption of state laws that would increase potential managed care litigation exposure; 2) the potential loss of the Medicaid contract with the state of Nevada; 3)competitive forces that may affect pricing, enrollment, renewals and benefit levels; 4) unpredictable medical costs, malpractice exposure, reinsurance costs and inflation; 5) impact of economic conditions; 6) changes in health care reserves; and 7) the amount of actual proceeds to be realized from the note receivable related to the sale of the workers' compensation insurance operation. Further factors concerning financial risks and results may be found in documents filed with the Securities and Exchange Commission and which are incorporated herein by reference. Consequently, all of the forward-looking statements made in this press release are qualified by these cautionary statements, and there can be no assurance that the actual results or developments anticipated by Sierra will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, Sierra or its business or operations. Sierra assumes no obligation to update publicly any such forward-looking statements, whether as a result of new information, future events or otherwise.