CNO Financial Group Extends and Amends Stockholder Rights Plan

CNO Financial Group, Inc. (NYSE: CNO) today announced that its Board of Directors adopted an amended and restated stockholder rights plan that extends and amends the stockholder rights plan originally adopted on January 20, 2009 and subsequently approved by stockholders, which was scheduled to expire on January 20, 2012.

The rights plan is designed to protect stockholder value by preserving the value of certain tax assets primarily associated with tax net operating loss carryforwards under Section 382 of the Internal Revenue Code. Section 382 would limit the value of those tax assets upon an "ownership change." The rights plan was originally adopted and is now being extended and amended to reduce the likelihood of this occurring by deterring the acquisition of common stock or other securities that could create an ownership change under Section 382.

In connection with the original adoption of the rights plan, one right was distributed for each share of CNO common stock outstanding as of the close of business on January 30, 2009 and one right was distributed with each share of CNO common stock that was issued after such date. The amended rights plan provides, subject to certain exceptions, that if any person or group acquires 4.99% or more of the company's outstanding common stock (or other securities that could cause an ownership change) without the approval of the Board of Directors, there would be a triggering event potentially resulting in significant dilution in the voting power and economic ownership of that person or group.

Existing stockholders who hold 4.99% or more of the company's outstanding common stock as of the date of the amended rights plan will trigger a dilutive event only if they acquire additional shares that would increase their percentage ownership of CNO by more than 1% without prior approval from the Board of Directors.