First American's HireCheck Acquires Employee Health Programs, Inc.

—Solidifies Position in Drug Screening Market—


October 17, 2002, SANTA ANA, Calif.

The First American Corporation (NYSE: FAF), the nation’s leading, diversified provider of business information and related products and services, today announced that its wholly-owned subsidiary, HireCheck, Inc., has acquired Employee Health Programs, Inc. (EHP) of Bethesda, Md., the screening industry’s largest independently owned drug testing management and medical review services provider. 

Coupled with the 2001 acquisition of Substance Abuse Management, Inc. (SAMI), another leading, independent drug testing services provider, HireCheck's acquisition of EHP bolsters the employment screening company's occupational health and safety services offering, which now includes an employee assistance program (EAP).  Through this acquisition, HireCheck is now the second largest provider of drug testing management and medical review services in the U.S.  

“HireCheck’s mission is to help our clients succeed in their employment decisions,” said John W. Long, chief executive officer of First American Screening Information. “EHP’s dedication to their clients’ success and their desire to provide integrated screening solutions make them a desirable partner.  We’re pleased to add our existing expertise in substance abuse management to EHP’s and to introduce their clients to HireCheck’s premier employment background-checking services.  Combining HireCheck, SAMI and EHP is a great stride toward our goal of remaining one of the nation’s premier providers of employment screening services.” 

 “Becoming part of the First American Family of Companies by integrating with HireCheck and SAMI presents a very exciting opportunity for us to expand our services and increase the resources and expertise available to our clients,” said Andy Macdonald, president and chief executive officer of EHP.  

Macdonald, who has more than a decade of experience in substance abuse management with EHP, will serve as president of First American Screening Information’s new occupational health division, created from the combination of EHP and SAMI’s operations.  Bart K. Valdez, SAMI’s current president and HireCheck’s chief operating officer, will dedicate himself full-time to HireCheck, serving as president of the employment background check division.  Macdonald and Valdez will both report to Long.  

For more than 20 years, HireCheck, Inc., based in St. Petersburg, Fla., has provided benchmark employment screening services nationally to assist employers with their hiring decisions.  A subsidiary of The First American Corporation since 1998, HireCheck is focused on becoming a recognized industry leader offering a full menu of screening services, including employment background checks and occupational health programs.  HireCheck’s acquisitions to-date—including SAMI, American Driving Records, Inc. (ADR) and several regional background-checking companies—have greatly expanded its offering and depth of resources. HireCheck’s combined staff of more than 350 employees provides nearly 10,000 employers with effective, convenient, tailored screening solutions nationwide.  More information about HireCheck, SAMI and ADR can be found on the Internet at www.hirecheck.com, www.samimro.com and www.mvrs.com.

Employee Health Programs, Inc. (EHP) provides a comprehensive selection of services to help employers hire and retain healthy, productive workers. Founded in 1989 by Donald Ian Macdonald, M.D., a former director of the White House Drug Abuse Policy Office, EHP is the nation's largest privately held provider of comprehensive drug testing services. Based outside Washington, D.C., EHP serves more than 3,500 client organizations in all 50 states, including Fortune 500 corporations, state and local governments and nonprofit organizations.  EHP's core services include drug-free workplace/medical review officer services, EAP and substance abuse professional services. For more information about EHP, visit www.ehp.com

The First American Corporation is a Fortune 500 company that traces its history to 1889. As the nation’s leading, diversified provider of business information, the company supplies businesses and consumers with the information resources that affect the major economic events of people’s lives, such as getting a job; renting an apartment; buying a car, house, boat or airplane; securing a mortgage; opening or buying a business; and planning for retirement. The First American Family of Companies, many of which command leading market share positions in their respective industries, operate within seven primary business segments including: Title Insurance and Services, Specialty Insurance, Trust and Other Services, Mortgage Information, Property Information, Credit Information and Screening Information. With revenues of $3.75 billion in 2001, First American has more than 22,500 employees in approximately 1,300 offices throughout the United States and abroad. More information about the company and an archive of its press releases can be found at www.firstam.com.

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