Friday August 11, 5:06 pm Eastern Time

Press Release

Universal American Financial Corp. Acquires Capitated Health Care Services, Inc.

RYE BROOK, N.Y.--(BUSINESS WIRE)--Aug. 11, 2000--Universal American Financial Corp. (NASDAQ National Market: UHCO) (``Universal'') today announced that it has acquired privately held Capitated Health Care Services, Inc. (``CHCS''), a leading provider of underwriting and case management services to the long-term care industry. It is anticipated that CHCS will operate as a separate unit of Universal. Terms were not disclosed.

Richard Barasch, Chairman and CEO of Universal, commented, ``The acquisition of CHCS will allow us to continue to expand our presence in the Senior Market in a cost-effective manner and enhance our ability to achieve cost/quality outcomes. Moreover, it provides Universal with a seasoned group of industry professionals to administer our growing portfolio of Senior Market products.''

Universal American Financial Corp. offers life and supplemental health insurance for senior citizens and customized insurance programs for market niches.

Except for the historical information contained above, this document may contain some forward looking statements, including statements related to 2000 operating results, which involve a number of risks and uncertainties that could cause actual results to differ materially. These risk factors are listed from time to time in the Company's SEC reports.


Contact:

     Universal American Financial Corp., Rye Brook
     Robert A. Waegelein, 914/934-8820
     Senior Vice President & Chief Financial Officer
     or
     Investor Relations Counsel:
     The Equity Group Inc., New York
     Devin Sullivan, 212/836-9608
     www.theequitygroup.com