Oxygen responds to the announcement of an MOU between Old Mutual SA and Lethimvula

Media Statement:  Oxygen response to the announcement of an MOU between Old Mutual SA and Lethimvula

07 May 2008 - Lethimvula Investments Limited (Lethimvula), a broad-based black owned company and Old Mutual South Africa (OMSA) today announced they had signed a Memorandum of Understanding (MOU) that aims to combine the respective administration and managed care business operations of Old Mutual Healthcare (OMHc), Medscheme and Rowan Angel.

As OMHc is the administrator and managed care service provider to Oxygen Medical Scheme, Oxygen would like to clarify the impact of the MOU on members of the scheme.

“Oxygen is an open medical scheme registered as a distinct legal entity, separate from Old Mutual and with a separate board of trustees,” says James van Vught, Principal Officer of Oxygen.

“We would like to make it clear that while Oxygen is not a party to the proposed transaction, our current contract for administration and managed care services with our administrator will continue.

“We will ensure that members’ interests are paramount in evaluating the merits of the transaction,” he says.

Oxygen also has a joint venture agreement with OMSA, which governs the marketing and distribution for the scheme. This joint venture will remain in place, he says.