S&P Comments on HealthPartners Inc.

Business Editors

NEW YORK--(BUSINESS WIRE)--April 29, 2003

Standard & Poor's Ratings Services commented today on HealthPartners Inc. and its strategic subsidiary, Regions Hospital.

The 'BBB+' counterparty credit and financial strength ratings on HealthPartners Inc.

On Feb. 4, 2003, Standard & Poor's Ratings Services placed the ratings on CreditWatch with negative implications in connection with a suit filed by the Minnesota Attorney General, which sought to have two additional board members (including the board chair) appointed to HealthPartners Inc. as a means to address issues raised in his compliance review. The review examined company expenditures for travel, executive compensation, and consulting work. HealthPartners Inc. and the Attorney General are in the process of mediating these issues.

Standard & Poor's has already completed much of its analytical review of HealthPartners Inc. and Regions Hospital but wants to incorporate the outcome of the mediation process into its final rating decision. Standard & Poor's expects the mediation process to be finalized within 30 days.

Complete ratings information is available to subscribers of RatingsDirect, Standard & Poor's Web-based credit analysis system, at www.ratingsdirect.com. All ratings affected by this rating action can be found on Standard & Poor's public Web site at www.standardandpoors.com; under Fixed Income in the left navigation bar, select Credit Ratings Actions.

Copyright 2003, Standard & Poor's Ratings Services