Coventry Health Care Announces Partnership in HealthCare Information Systems Company.

Health & Medical Writers

BETHESDA, Md.--(BW HealthWire)--March 16, 2000

Coventry Health Care, Inc. (NASDAQ/NM:CVTY) announced today that it has partnered with E.M. Warburg, Pincus & Co., LLC to fund a company that will seek to invest in emerging companies that are developing technology

After an initial working capital investment provided by Warburg Pincus, the company's investments will be funded 80% by Warburg Pincus and 20% by Coventry.

"This is a logical way for us to participate in the technological innovation that is occurring within the health care industry and demonstrates our commitment to changing how we do business," said Allen F. Wise, Coventry's President and Chief Executive Officer.

"While we will continue to form partnerships with companies already proven to be leaders in applying technology solutions to our business model, we will now be able to help companies develop the next generation of technology applications that will further revolutionize that business model."

Warburg Pincus is a major global private equity investment firm that has sponsored eight private equity funds. To date, these funds have invested more than $9 billion in over 360 companies across a broad range of industries.

Coventry is a regional managed health care company operating in 15 markets throughout the Midwest, Mid-Atlantic and Southeast United States and will serve as a test-site for newly developed solutions. Allen F. Wise, chief executive officer and president of Coventry will serve on the Board of Directors of the newly formed company and offer his extensive experience in the health care arena.

Coventry operates health plans and insurance companies under the names Coventry Health Care, Coventry Health and Life, HealthAmerica, HealthAssurance, HealthCare USA, Group Health Plan, Southern Health, SouthCare and Carelink Health Plans.

The Company provides a full range of managed care services including HMOs, PPOs, POSs, Medicare Risk and Medicaid products to 1.5 million members in a broad cross section of employer and government-funded groups. 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, 1998 filed with the Securities and Exchange Commission.