CALIFORNIA PUBLIC EMPLOYEES’ RETIREMENT SYSTEM SELECTS MEDSTAT FOR DECISION SUPPORT SYSTEM

Ann Arbor, Mich., (October 2, 2002) - Medstat, a Thomson business, announced today that it has signed a multi-year agreement to provide healthcare information services to the California Public Employees’ Retirement System (CalPERS). CalPERS provides retirement and health benefits to more than 1.2 million members and is a national model of group healthcare purchasing.

CalPERS and other large employers are experiencing major challenges in the management of their health benefits programs. Medstat’s decision support system, Advantage Suite®, will provide CalPERS with vital information to support initiatives in healthcare cost and utilization analysis, premium negotiations, program management and plan design. “This tool will be one of our cornerstones in better identifying the health needs of our entire CalPERS population and in assuring better value and pricing in our current purchasing and vendor relations,” said Allen Freezor, Assistant Executive Officer for CalPERS Health Benefits Services. “The system will also help us better target and measure areas of performance improvement we need from our vendors and health providers and will enable our enrollees to make better healthcare purchasing decisions.”

Through the use of Medstat’s Advantage Suite, CalPERS will be able to assess the impact of potential innovations in care management programs and benefit designs. “Good data will allow staff to profile HMOs and determine which vendors provide us with the most value in quality areas such as care and disease management, health promotion, and member and physician education programs,” said Mary McNally, Manager for CalPERS Information Analysis Unit.

Medstat (www.medstat.com), a Thomson business, is a health information company that provides decision support systems, market intelligence, benchmark databases, and research for managing the purchase, administration, and delivery of health services and benefits. It serves more than 1,000 organizations including many of the nation’s leading employers, providers, pharmaceutical companies, government organizations, and health plans and insurance companies. Head quartered in Ann Arbor, Mich., Medstat has a 20-year track record  of delivering results for customers through innovative products, superior customer service, and outstanding people. Medstat is  part of The Thomson Corporation (www.thomson.com), a global 
leader in providing integrated information solutions to business and professional customers with 2001 revenues of approximately US$7.2 billion. The Corporation's common shares are listed on the New York and Toronto stock exchanges (NYSE: TOC; TSX: TOC).

Contact:
Pam Conrad
Medstat
(734) 913-3325
pam.conrad@medstat.com