<HTML><BODY style="word-wrap: break-word; -khtml-nbsp-mode: space; -khtml-line-break: after-white-space; "><DIV style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; "><A href="http://www.latimes.com/business/la-fi-walmart27oct27,1,1353294.story"><FONT class="Apple-style-span" face="Times" size="4"><SPAN class="Apple-style-span" style="font-size: 16px;">http://www.latimes.com/business/la-fi-walmart27oct27,1,1353294.story</SPAN></FONT></A></DIV><DIV style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; "><FONT class="Apple-style-span" face="Arial" size="5"><SPAN class="Apple-style-span" style="font-size: 18px;"><B>Wal-Mart's Memo Blurs Its Message on Benefits</B></SPAN></FONT></DIV><DIV style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; "><FONT class="Apple-style-span" face="Verdana" size="2"><SPAN class="Apple-style-span" style="font-size: 10px;"><B>As the retailer vows to widen coverage, the document suggests 'bold steps' to cut health costs.</B></SPAN></FONT></DIV><DIV style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; "><FONT class="Apple-style-span" face="Times" size="4"><SPAN class="Apple-style-span" style="font-size: 16px;">By Abigail Goldman and Lisa Girion</SPAN></FONT></DIV><DIV style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; "><FONT class="Apple-style-span" face="Times" size="4"><SPAN class="Apple-style-span" style="font-size: 16px;">Times Staff Writers</SPAN></FONT></DIV><DIV style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 16px/normal Times; min-height: 19px; "><BR></DIV><DIV style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; "><FONT class="Apple-style-span" face="Times" size="4"><SPAN class="Apple-style-span" style="font-size: 16px;">October 27, 2005</SPAN></FONT></DIV><DIV style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 16px/normal Times; min-height: 19px; "><BR></DIV><DIV style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; "><FONT class="Apple-style-span" face="Times" size="4"><SPAN class="Apple-style-span" style="font-size: 16px;">Wal-Mart Stores Inc., which built its reputation — and a virulent opposition — on rock-bottom prices, has talked a lot lately about becoming a kinder, more responsible company.</SPAN></FONT><FONT class="Apple-style-span" face="Times" size="4"><SPAN class="Apple-style-span" style="font-size: 16px;"> </SPAN></FONT></DIV><DIV style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 16px/normal Times; min-height: 19px; "><BR></DIV><DIV style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; "><FONT class="Apple-style-span" face="Times" size="4"><SPAN class="Apple-style-span" style="font-size: 16px;">But the retailing giant is finding that convincing the world that it is "committed to change," and to keeping costs low, is a tough balancing act.</SPAN></FONT><FONT class="Apple-style-span" face="Times" size="4"><SPAN class="Apple-style-span" style="font-size: 16px;"> </SPAN></FONT></DIV><DIV style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 16px/normal Times; min-height: 19px; "><BR></DIV><DIV style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; "><FONT class="Apple-style-span" face="Times" size="4"><SPAN class="Apple-style-span" style="font-size: 16px;">On Monday, Chief Executive H. Lee Scott Jr. pledged to bring health insurance within reach of his 1.3 million U.S. employees. On Wednesday, a leaked company memo revealed "bold steps" to reign in Wal-Mart's employee benefit costs.</SPAN></FONT><FONT class="Apple-style-span" face="Times" size="4"><SPAN class="Apple-style-span" style="font-size: 16px;"> </SPAN></FONT></DIV><DIV style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 16px/normal Times; min-height: 19px; "><BR></DIV><DIV style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; "><FONT class="Apple-style-span" face="Times" size="4"><SPAN class="Apple-style-span" style="font-size: 16px;">Among the recommendations: using more part-time workers, cutting life-insurance payouts, pushing spouses off health plans through higher premiums and trying to dissuade unhealthy people from seeking jobs by, among other things, requiring cashiers to gather carts in Wal-Mart's vast parking lots.</SPAN></FONT><FONT class="Apple-style-span" face="Times" size="4"><SPAN class="Apple-style-span" style="font-size: 16px;"> </SPAN></FONT></DIV><DIV style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 16px/normal Times; min-height: 19px; "><BR></DIV><DIV style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; "><FONT class="Apple-style-span" face="Times" size="4"><SPAN class="Apple-style-span" style="font-size: 16px;">snip</SPAN></FONT></DIV></BODY></HTML>