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May 14, 2001

Robert D. Martin, PhD, Named Chief Executive Officer of the University of Pennsylvania Health System

(Philadelphia, PA) -- Dr. Judith Rodin, president of the University of Pennsylvania, today announced the appointment of Robert D. Martin, PhD, as Chief Executive Officer of the University of Pennsylvania Health System (UPHS), effective immediately. This appointment confers to Martin, on a permanent basis, the top administrative position of the Health System -- which has been held by him for the past 10 months on an interim basis. Prior thereto, he was the Chief Operating Officer.

"Since becoming interim CEO last July, Robert has been leading the financial turnaround of the Health System," said Dr. Rodin, in announcing the appointment. "His appointment as CEO is a recognition of his stewardship during these demanding times."

Under Martin's leadership, the University of Pennsylvania Health System reversed its downward spiral of ever-increasing operating losses -- a $98 million loss in fiscal year 1998, followed by a $198 million loss in FY99. By developing and implementing a carefully crafted Financial Recovery Plan, Martin and his senior management team effected a record-breaking financial turnaround of $170 million in one year, closing the gap to only $30 million in losses for FY 2000. Building on that momentum, the Health System has reported an $18.5 million operating profit for the first six months of the current fiscal year.

"I am privileged to be part of the success we have achieved in restoring financial integrity to our Health System," said Dr. Martin. "Our significant recovery is the result of the hard work and dedication of our talented faculty, employees and senior management team, as well as the loyalty and confidence of our patients, whom we are honored to serve.

"We will continue to have financial and other challenges as we remain committed to providing superb patient care in the context of our medical education and research goals, but I remain confident we have the resourcefulness and resolve required to see us through these issues as well," he added.

In a short time, Martin has taken on increasingly more responsible positions within the Health System. He came to Penn as Executive Director of Clinical Care Associates (CCA), the primary-care
network for the Health System. During his tenure in that position (August 1997 to March 1999), he had
direct responsibility for ensuring the seamless and efficient delivery of health-care services within the network.

Before joining the University of Pennsylvania Health System, Martin was Chief Administrative Officer and Treasurer to the Board of Governors at the Mayo Clinic in Scottsdale, Arizona. There, he developed a 10-year business plan addressing hospital strategy, managed-care strategy, primary-care strategy, and management development. From 1989 to 1995, he served as Senior Vice President for Finance and Administration and CFO for Scottsdale Memorial Health Systems.

A graduate of the University of North Texas, Martin holds M.A. and Ph.D. degrees in economics and finance from Southern Methodist University.

Dr. Martin and his wife, Theresa, reside in Wayne, Pennsylvania.

The University of Pennsylvania Health System was established in 1993 as the nation's first fully integrated academic health system. It is comprised of the University of Pennsylvania Medical Center [which includes Penn's School of Medicine, the nation's first medical school; and the Hospital of the University of Pennsylvania (HUP), the nation's first teaching hospital], Pennsylvania Hospital (the nation's first hospital), Presbyterian Medical Center, Phoenixville Hospital, as well as educationally-affiliated hospitals, multi-specialty satellite facilities, a primary-care provider network, and home health, hospice, and long-term care.

The University of Pennsylvania Health System is committed to excellence and innovation in patient care, medical education, and research. The Hospital of the University of Pennsylvania was named one of the country's top ten "Honor Roll" hospitals by U.S. News & World Report in that magazine's last annual survey (2000) of the best hospitals in America. In that same publication's latest ranking of medical schools (for 2001), the University of Pennsylvania School of Medicine was ranked #4 in the nation. And Penn's School of Medicine is ranked #2 in the nation in terms of research funding granted by the National Institutes of Health (NIH) -- perhaps the single most important barometer of research strength.

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