Aetna Services, Inc. Intends To Issue $1 Billion Of Debt Securities

Aetna Inc. to unconditionally guarantee payments on new debt securities as well as on outstanding Aetna securities

HARTFORD, Conn., August 6, 1996 — Aetna (NYSE: AET) intends to issue $1 billion in new debt securities through its Aetna Services, Inc. subsidiary. The issue is expected to consist of five-year and 10-year notes, and 30-year and 40-year debentures. The notes and debentures will be unconditionally guaranteed as to the payment of principal and interest by Aetna Inc. The proceeds from the offering will be used to refinance currently outstanding short-term debt.

Merrill Lynch & Co. is the lead underwriter for the $1 billion proposed new issue. Other underwriters are: CS First Boston; Donaldson, Lufkin & Jenrette Securities Corporation; Goldman, Sachs & Co.; Lehman Brothers; J.P. Morgan & Co.; and Morgan Stanley & Co. Incorporated.

Aetna Inc. also has unconditionally guaranteed the payment of all principal, premium and interest and, to the extent previously guaranteed, dividends and other payments, on the following outstanding securities of Aetna Services, Inc. (formerly Aetna Life and Casualty Company) and its subsidiaries:

– $100 million 8-5/8% Notes due 1998

– $200 million 6-3/8% Notes due 2003

– $200 million 6-3/4% Debentures due 2013

– $63.5 million 7-3/4% Eurodollar Notes due 2016

– $200 million 8% Debentures due 2017

– $200 million 7-1/4% Debentures due 2023

– 11,000,000 shares of 9-1/2% Cumulative Monthly Income Preferred Securities (MIPS)

Series A, of Aetna Capital L.L.C. and the related Aetna Services, Inc. $348 million 9-1/2% Subordinated Debentures due 2024.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such a state. Copies of the prospectus and preliminary prospectus supplement relating to the $1 billion proposed new offering of debt securities may be obtained from the underwriters named above at their offices in New York, New York or at other principal offices.

For more information about Aetna Inc., please visit the company’s website at