IRS News Releases  
Oct. 3, 2005

IRS Reaches Agreement with
Doctors Benefit Insurance Company, LTD

WASHINGTON - The Internal Revenue Service announced today that it has reached an agreement with Doctors Benefit Insurance Company, Ltd. (�DBIC�), assignee of x�lan Insurance Company Limited. The agreement resolves various issues relating to group supplemental insurance programs offered to members of x�lan, The Economic Association of Health Professionals, through four separate trusts created by x�lan, Inc.

Without admitting or denying wrongdoing or legal liability under the Internal Revenue Code, DBIC agreed to cease operations and return approximately $500 million to participants in the programs. DBIC is being required to withhold taxes on the payments, which will be taxable to the participants when received. Additionally, under the terms of the agreement, DBIC agreed to make a $2.34 million non-deductible payment to the Internal Revenue Service to resolve issues arising in connection with its issuance of the supplemental policies.

The agreement included a disclosure authorization that allowed the IRS to issue this release. Section 6103 of the Internal Revenue Code strictly limits the IRS in disclosing taxpayer information.

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