Trigon Healthcare Expects to Exceed EPS Estimates forThird and Fourth Quarters of 2000.

Business Editors/Health & Medical Writers

RICHMOND, Va.--(BW HealthWire)--Oct. 10, 2000

Trigon Healthcare Inc. (NYSE: TGH) today said it expects to exceed First Call/Thomson Financial consensus earnings per share estimates for both the third and fourth quarters of 2000.

Trigon expects to report third quarter diluted EPS of between $0.89 and $0.93 vs. consensus of $0.79. For the fourth quarter, it expects to report diluted EPS of approximately $0.82 to $0.86 vs. consensus of $0.80. The diluted EPS estimates exclude realized gains and losses.

The company attributed the upwardly revised estimates to better-than-expected investment income and administrative and medical cost ratios, as well as continued strong commercial (fully insured) enrollment.

Trigon exceeded consensus estimates in the first quarter of 2000 by 20 percent, when year-end consensus was $2.64. The newly revised year-end diluted EPS estimates of $3.21 to $3.29 would produce EPS growth of approximately 54 percent to 57 percent over 1999 results of $2.09, excluding realized gains and losses and a non-recurring charge. The current EPS consensus estimate for the full year 2000 is $3.09.

The company plans to issue a complete earnings release for the third quarter on November 8, 2000. Trigon is Virginia's largest managed health care company, providing a broad range of health, wellness and health care financing programs and services to nearly 2 million members.

Cautionary statement: This release contains forward-looking statements with respect to the financial condition, results of operations and business of Trigon Healthcare Inc. and its subsidiaries. Such forward-looking statements are subject to inherent risks and uncertainties that may cause actual results to differ materially from those contemplated by such forward-looking statements. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include rising health care costs, business conditions and competition in the managed care industry, development in health care reform and other regulatory issues. Additional risk factors are listed from time to time in the Company's various SEC reports, including but not limited to the Company's Annual Report on Form 10-K for the year ended December 31, 1999, and the 2000 quarterly Form 10-Q filings.