Coventry Health Care Adds New Market Through Acquisition of PersonalCare Health Management, Inc.

Business Editors

BETHESDA, Md.--(BUSINESS WIRE)--Dec. 18, 2002

Coventry Health Care (NYSE:CVH) announced today that it has signed a definitive agreement to acquire PersonalCare Health Management, Inc. (PersonalCare) and its HMO subsidiary, PersonalCare Insurance of Illinois,

"We are excited to be adding a new market through the acquisition of PersonalCare," said Allen F. Wise, President and Chief Executive Officer of Coventry. "Our proven business model will allow Coventry to continue to provide high quality health care to the current members of PersonalCare, while enhancing service to employer and provider customers through our technology and service centers. In addition, our relationship with Provena Health, a premier health system in the region, provides a strong foundation for profitable growth."

Coventry will purchase the stock of PersonalCare for $18.0 million in cash, subject to certain balance sheet true-up provisions. Included in the purchase price is approximately $6.4 million of statutory net worth. In addition, the acquisition includes long-term provider and employer group agreements with the current owner. The transaction is expected to close in the first quarter of 2003 and be $0.02 accretive to earnings in 2003.

Coventry Health Care is a managed health care company based in Bethesda, Maryland operating health plans and insurance companies under the names Coventry Health Care, Coventry Health and Life, Carelink Health Plans, Group Health Plan, HealthAmerica, HealthAssurance, HealthCare USA, Southern Health and WellPath. The Company provides a full range of managed care products and services including HMO, PPO, POS, Medicare+Choice and Medicaid to 2.0 million members in a broad cross section of employer and government-funded groups in 12 markets throughout the Midwest, Mid-Atlantic and Southeast United States. More information is available on the Internet at http://www.cvty.com.

This press release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements relate to future events or future financial performance and may be significantly impacted by certain risks and uncertainties described in the Company's Annual Report on Form 10-K for the year ended December 31, 2001 filed with the Securities and Exchange Commission.