BenefitPoint Launches the First E-Commerce Platform for Insurance Brokers and Consultants.

SAN FRANCISCO--(BUSINESS WIRE)--Dec. 15, 1999--

B2B Group Insurance Market Maker Launches

Broker Back Office Infrastructure And Nets $12

Million in Financing

BenefitPoint, Inc. today announced that it has launched its e-commerce platform that enables insurance brokers to better manage the marketing, sales, and servicing of group benefits, including medical, dental, vision, life, and disability. BenefitPoint already has tremendous support from the nation's leading insurance brokerage and consulting firms with over 40 strategic broker customers.

The company also announced that it has attracted $12 million in series A financing from Sequoia Capital, Institutional Venture Partners (IVP), and over 20 broker investors across the country including: -0-

  --   Arthur J. Gallagher & Co. (NYSE: AJG), --   ABD Insurance & Financial Services, --   Palmer & Cay Consulting Group, Inc., --   Summit Global Partners, Inc., --   Kaye Group, Inc. (NASDAQ: KAYE), --   Trion Group, LLC, and --   Keenan & Associates. 

-0-

"The employee benefits insurance industry is approaching $1 trillion and is shackled by a highly inefficient distribution system and is controlled by a deep network of benefits brokers and consultants," said Sam Collela, general partner IVP and board member of BenefitPoint. "A clear opportunity exists to solve insurance distribution challenges by providing a platform that supports the existing broker distribution channel. BenefitPoint is delivering this solution today -- a premier outsourced platform built "by brokers, for brokers" that leverages relationships, expertise, and technology in order to drive efficiency,"

Jim Durkin, president of Gallagher Benefit Services, the employee benefit operation of Arthur J. Gallagher & Co., commented, "With BenefitPoint, we're getting something that previously was not available, namely a sophisticated industry infrastructure that was developed with a real understanding of day-to-day product distribution and customer service issues. Because we can communicate and transact business more efficiently with employers, carriers, and third-party vendors, we can provide more effective customer service. Ultimately, BenefitPoint will enable us to increase revenues, lower costs, and improve customer satisfaction and retention."

The existing e-commerce insurance solutions focus on commodity insurance products or segments of the industry such as the small group market, employee communications, or benefits administration. BenefitPoint is an end-to-end, business-to-business solution enabling brokers to maximize the operating and strategic advances of e-commerce.

According to Brian Bair, BenefitPoint co-founder, "Our platform gives brokers and consultants control over critical customer data throughout the entire lifecycle of group insurance products. We are providing an infrastructure that will enable the industry to achieve a new level of efficiency and productivity. By combining our industry experience, unique relationships and our partnership with Scient Corporation (NASDAQ: SCNT), the world's leading systems innovator, BenefitPoint is delivering 'the killer app; to the insurance industry."

Kurt de Grosz, BenefitPoint co-founder, adds, "Having been brokers ourselves, we understand the value a broker brings to employers and carriers. Rather than trying to disintermediate the broker, BenefitPoint is focused on empowering brokers by bringing e-commerce efficiency to their back office and enabling them to provide enhanced consultative and administrative service, which is the core value proposition of brokers and consultants."

About the Investors

BenefitPoint's investment partners represent broad experience in insurance, health care, and technology development and growth. -0-

  --   Sequoia Capital has more than $750 million under management and      has financed over 350 early stage technology companies with more      than 100 of these companies undergoing an IPO or acquisition.      Sequoia's successes include: Cisco Systems (NASDAQ: CSCO), Yahoo!      (NASDAQ: YHOO), E-Loan (NASDAQ: EELN), eToys (NASDAQ: ETYS), and      WebVan (NASDAQ: WBVN).  --   IVP has more than $1 billion under management and such successful      investments in its portfolio as: BayNetworks, Excite (NASDAQ:      ATHM), Ask Jeeves (NASDAQ: ASKJ), Tivo (NASDAQ: TIVO), Concur      Technologies, and LSI Logic.  --   Twenty-three large regional insurance brokers throughout the      United States, which have embraced the BenefitPoint solution      through strategic investments in the company. 

-0-

About BenefitPoint

BenefitPoint provides a B2B e-commerce service platform for insurance brokers, enabling them to manage the entire group health insurance and benefits lifecycle. Building on the existing industry relationships among brokers, carriers, and employers, BenfitPoint's solution combines the efficiency of the Internet with the established distribution model of the insurance industry to lower costs, improve customer service, and increase sales. Releasing its first product in December 1999, BenefitPoint has widespread industry adoption by over 40 major insurance brokerages. BenefitPoint has received investment support from Sequoia Capital, Institutional Venture Partners (IVP), and some of the largest insurance brokerage firms in the United States. The company, headquartered in San Francisco, CA, can be reached at (415) 837-4120 or at www.benefitpoint.com. BenefitPoint, Inc. is privately held.

Note to Editors: BenefitPoint is a trademark of BenefitPoint, Inc. All other company and products names mentioned here are trademarks of their respective owners.