AOPA Online: Good news: FAA extends first, third class medicals

I guess this happened last week.

If you are under 40, 1st class medicals are now good for 12 months and 3rd class medicals are good for 60 months. Best of all, all medicals are grandfathered in!

...and after thinking and reading, does this mean 1st jumps to 3rd after the 12 month period? At least thats my understanding.