Hewitt Partners with Willis to Offer Health Care Outsourcing to Midsize Employers.

Business Editors

LINCOLNSHIRE, Ill. and LONDON--(BUSINESS WIRE)--Jan. 21, 2002

Double-digit health care cost increases and expanding compliance burdens are causing many companies to reevaluate their health care benefits for 2002. In the face of these challenges, midsize companies have

Through the agreement, Hewitt, which currently provides outsourcing and consulting services to nearly two-thirds of Fortune 1000 companies, will offer its health and welfare benefits outsourcing solution, Sageo, to Willis clients with 500 or more employees.

"This is a group of companies that historically has not been offered or been able to afford comprehensive outsourcing services, yet they are the ones that are most impacted by rising health care costs," says Tom Beauregard, a member of Hewitt's health care leadership group. "This agreement will enable them to more effectively manage their benefit plans and costs by providing them with access to a cost-effective and efficient outsourcing solution."

Sageo, which was created by Hewitt last year, manages companies' benefits, including enrollment, administration and customer service, through a Web site and customer care center. More than 20 companies and 400,000 employees, retirees and their family members are currently served by Sageo. Willis plans to offer Sageo's services to its clients beginning this year.

"We are excited about this partnership with Hewitt. The combination of Willis' expertise in the middle market and Hewitt's outsourcing experience fills an important value gap for many of our clients," says Phil Neff, national practice leader of Willis' Employee Benefits Group. "Further, this agreement is consistent with our growth strategy and clearly illustrates the new Willis - engage with leaders in other sectors to undertake innovative ventures which bring additional value to our clients."

Hewitt, a leading provider of benefits outsourcing services to large companies, currently administers benefit programs to more than 12 million participants worldwide. "We are excited by the opportunity to bring our services to a new market in association with Willis, a firm that is dedicated to providing outstanding service to a wide national network of employers," says Beaurergard.

About Willis

Willis Group Holdings is a leading global insurance broker, that develops and delivers professional insurance, reinsurance, financial and human resource consulting and actuarial services to corporations, public entities and institutions around the world. With over 300 offices in more than 100 countries, its global team of 13,000 associates serves over 50,000 clients in 160 countries. Willis has particular expertise in serving the needs of clients in such major industries as construction, aerospace, marine and energy. In June 2001, the Group returned to public ownership and is listed on the New York Stock Exchange (symbol: WSH). Additional information on Willis may be found on its Web site at www.willis.com.

About Hewitt Associates

Hewitt Associates (www.hewitt.com) is a global outsourcing and consulting firm delivering a complete range of human capital management services to companies, including HR and benefits outsourcing, HR strategy and technology, health care, organizational change, retirement and financial management, and talent and reward strategies. With 80 offices in 37 countries, Hewitt's 2001 fiscal year revenues were approximately $1.5 billion.