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Tax Implications
$1.00 dividend paid on Universal American Corp. common stock on November 19,
2012

A portion of the dividend paid on November 19, 2012 is a return of capital for federal tax purposes and is not currently taxable. The return of capital portion reduces the holder’s basis in their Universal American stock.

The breakdown is as follows:

23.36% - Return of capital

76.64% - Qualified dividend

For example, if you owned 100 shares of Universal American Corp. common stock on the record date, November 12, 2012, you received a $100 distribution. Of that distribution, $76.64 is taxable as a qualified dividend and $23.36 is a return of capital that reduces your basis in each share of stock by 23.36 cents.

Please see your personal tax advisor to determine how this information should be used on your personal tax return. This information is meant as general information only.