Our affiliated companies – Delta Dental of California, Delta Dental of Pennsylvania, Delta Dental Insurance Company and Delta Dental of New York – all remain financially stable and in good position to weather the current economic environment.

Here’s why:

Our Finances

• Our current reserves – in excess of $400 million – are more than adequate to meet our policy holder obligations and regulatory guidelines.
• The majority of our reserves are invested in AAA rated fixed securities (bonds) with no exposure to sub-prime mortgages.
• Our AM Best rating currently is A- (excellent).

We are not highly leveraged and have no long-term debt obligations to repay.

Our Customers

• We expect to renew the vast majority of our existing customers (more than 98%);
• We continue to acquire substantial new business;
• We have already exceeded our sales goals for 2008 in every region;
• We are on pace to add 1.2 million new enrollees by end of the year, bringing us to 22.9 million subscribers.

Our Future

To help us continue our competitive advantage, we are making a significant investment (without borrowing) in new claims processing and customer service technology that will allow us to:

• Streamline our administration;
• Reduce our costs;
• Improve service to our groups, dentists and enrollees.