To: Ovations Leadership Team

Date: June 30, 2003

Subject: Fort Smith and El Segundo Facility Transfer

Tomorrow morning, we will announce that Ovations is transferring the Evercare Connections administrative services currently performed at our Fort Smith and El Segundo facilities to Long Term Care Group, Inc. By transferring these administrative functions, we can increase our focus on our core competencies of providing information and resources, care advocacy and coordination, and care implementation and monitoring.

Currently, there are 16 employees at Fort Smith and one at El Segundo. All of these individuals will transfer to Long Term Care Group and receive a competitive benefit plan, along with service credit for health benefits, retirement, vacation and other benefits.

To support you in your roles as communicators, attached are key messages about this announcement, an employee Q&A, and talking points. The timeline for this announcement is as follows.

June 30 Memo, key messages, Q&A and talking points to Leadership Team.

July 1, 9 a.m. CT Conference call with Evercare Connections managers to explain decision and answer questions; supporting documents emailed to managers.

July 1, 11 a.m. CT Evercare Connections managers meet with employees to announce decision and distribute supporting documents.

July 1, 12 noon CT All Ovations employees receive broadcast email with announcement and link to intranet to view supporting documents.

July 2, 9 a.m. CT Conference call with all Evercare managers to debrief from announcement day and collect employee questions.

July 3, 12 noon CT Evercare Connections employees receive follow-up Q&A to respond to announcement day questions.

If you have any questions about our communications strategy, please contact [NAME] at [PHONE] or [EMAIL]. Thank you for your support as we prepare for this announcement.