Molina Healthcare, Inc. is a multi-state managed care organization that arranges for the delivery of healthcare services to persons eligible for Medicaid and other programs for low-income families and individuals. The Company is a provider organization serving the Medicaid population through a network of primary care clinics in California. It recognized the growing need for the effective management and delivery of healthcare services to underserved Medicaid beneficiaries and expanded it business to operate as a health maintenance organization (HMO). As of September 30, 2002, the Company had approximately 478,000 members.