Evolution Benefits and HSA Bank Team up to Offer Health Savings Accoun

    Business Editors

    AVON, Conn. & SHEBOYGAN, Wis.--(BUSINESS WIRE)--Jan. 6, 2005--Evolution Benefits Inc. (EB) and HSA Bank(TM) announced today that they have an agreement to provide an integrated solution combining HSA Bank's health savings accounts and Evolution's benefits debit card known as Benny(TM) to support advanced consumer-directed healthcare programs. The companies' integrated product offering will be available in the first quarter of 2005.
    "As a result of this agreement," explained Christopher Byrd, executive vice president at Evolution Benefits, "EB and HSA Bank can offer health plans and third party administrators a turnkey HSA/debit card product that integrates seamlessly with other benefits, such as flexible spending accounts (FSAs) and healthcare reimbursement arrangements (HRAs). We think many employers will offer HSAs with other benefit accounts. EB is uniquely positioned to address this need with the proven multi-account capabilities of our debit card."
    "Since 1997, HSA Bank has led the way in providing financial solutions that help consumers conveniently save and pay for healthcare services," said Kirk Hoewisch, senior vice president at HSA Bank. "Similarly, Evolution Benefits has led the benefits debit card industry with its forward thinking innovations like coordinating multiple accounts on one card and electronic substantiation."
    Under the arrangement, HSA Bank will serve as the trustee for the health savings accounts and will provide enrollment services, account documentation, check processing and access to investment services via its partners and affiliates. Evolution Benefits will furnish debit card services and technology links to administrators. In addition to the debit card, customers may choose to request a distribution through the account administrator and/or by writing a check drawn on the HSA.
    "Over the past several years, HSA Bank has gained solid experience and a reputation to match in the medical savings account and now health savings account market," observed Mr. Byrd. "The company has already sold thousands of HSAs in all 50 states, a clear testament to its track record of success. Teaming with HSA Bank is consistent with Evolution Benefits' track record of offering our customers superior product capabilities, either directly or through partnerships with leaders in the market. We are also particularly pleased to be working with HSA Bank given the announced sale to nearby Webster Financial Corporation, with whom we have many working relationships."
    Evolution Benefits provides payment technology and services that help employees easily access funds contributed to employee benefits programs. Benny, which can be either a debit MasterCard(R) card or a debit Visa(R) card, electronically accesses the contributions set aside in FSAs, HRAs, HSAs, and qualified transportation accounts (QTAs). Benny gives consumers greater control in the management of their benefits, while providing employers and benefits administrators a popular product enhancement at a very low cost.
    HSAs, created under the Medicare bill passed in 2003, are pre-tax savings vehicles for employees who have high-deductible health plans at work and want to set aside money for out-of-pocket medical expenses. Unlike HRAs and FSAs, these accounts are portable, must be held in trust and are under the complete control of employees.
    On September 7, 2004, HSA Bank announced a definitive agreement to be acquired by Webster Bank, N.A., the 45th largest bank in the United States and the largest independent bank based in southern New England. HSA Bank will become a division of Webster Bank (NYSE:WBS).

    About Evolution Benefits

    Evolution Benefits was founded in 2000 with a commitment to supporting the movement toward greater consumer choice in and responsibility for employee benefits. Its primary product, the Benny(TM) debit card, applies advanced payment technologies and pioneering electronic substantiation methodologies to FSAs, HRAs, QTAs and HSAs, creating a bridge between traditional benefit structures and the evolving self-directed benefits movement.. Evolution Benefits now powers the programs of more than 40 managed care organizations, more than 1500 employers, including 30 of the nation's top-ranked companies, and hundreds of thousands of employees. Please visit www.EvolutionBenefits.com for more information.

    About HSA Bank

    HSA Bank serves customers in every state in the nation and is one of the first financial institutions nationwide to offer health savings accounts. HSA Bank combines convenience, service and savings with low account maintenance fees, high interest rates for investments, 24-hour account access online or through an automated telephone system and outstanding personal service. For more information about HSA Bank, visit the HSA Bank website at www.hsabank.com.

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CONTACT: Cree Communications Media Contact: Elayne Cree, 860-651-7773 (8 am - 8 pm Eastern Time) 843-412-8271 (Cellular - anytime) elayne@creecommunications.com or Evolution Benefits Inc. Anne Carpenter, 860-678-5561 (8 am - 6 pm Eastern Time) pr@evolutionbenefits.com or HSA Bank Becky Seefeldt, 800-357-6246 Ex. 34215 bseefeldt@hsabank.com

KEYWORD: CONNECTICUT WISCONSIN INDUSTRY KEYWORD: MEDICAL INSURANCE HUMAN RESOURCES BANKING MARKETING AGREEMENTS SOURCE: Evolution Benefits Inc.

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