$400 Million Debt Issue Closes; Conseco Repays Bank Debt Six Months Early.

Business Editors

INDIANAPOLIS--(BUSINESS WIRE)--June 29, 2001

Conseco, Inc. (NYSE:CNC) announced today that its $400 million public debt issue has closed. Proceeds from the debt issue were received by the company this morning.

This afternoon, Conseco wired $478 million to its lead banks to repay a credit facility that was not due until December. This $478 million payment is the final part of more than $2 billion in debt repayment scheduled for 2000 and 2001 in conjunction with the company's September 2000 agreement with banks to restructure its bank credit facilities. The company used the proceeds from the $400 million debt issue and other cash on hand to make the payment.

Conseco Chairman and CEO, Gary Wendt, who celebrated his one year anniversary with Conseco today, was pleased with today's actions. "Until someone reminded me this morning that it was my first anniversary with Conseco, I hadn't even thought about it. But this is a pretty good way to celebrate - a successful return to the public debt market and repaying debt six months ahead of schedule.

"We've got a lot of hard work left to meet our long term goals," said Wendt, "but this is an important milestone."

In addition to the proceeds from the just-completed debt issue, the $2 billion in debt repayment has been funded by operating cash flow and the sale or monetization of more than $1.6 billion in non-core assets. Chief among the non-core assets remaining to be sold is Conseco's 17.2 million share stake in Telecorp (NASDAQ:TLCP). Proceeds from these future sales will be used for further debt reduction.

Note on forward-looking statements: All statements, trend analyses and other information contained in this release and elsewhere (such as in filings by Conseco with the Securities and Exchange Commission, press releases, presentations by Conseco or its management or oral statements) relative to markets for Conseco's products and trends in Conseco's operations or financial results, as well as other statements including words such as "anticipate," "believe," "plan," "estimate," "expect," "intend," "should," "could," "goal," "target," "on track," "comfortable with," "optimistic" and other similar expressions, constitute forward-looking statements under the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to known and unknown risks, uncertainties and other factors which may cause actual results to be materially different from those contemplated by the forward-looking statements. Such factors include, among other things: (1) general economic conditions and other factors, including prevailing interest rate levels, stock and credit market performance and health care inflation, which may affect (among other things) Conseco's ability to sell its products, its ability to make loans and access capital resources and the costs associated therewith, the market value of Conseco's investments, the lapse rate and profitability of policies, and the level of defaults and prepayments of loans made by Conseco; (2) Conseco's ability to achieve anticipated synergies and levels of operational efficiencies; (3) customer response to new products, distribution channels and marketing initiatives; (4) mortality, morbidity, usage of health care services and other factors which may affect the profitability of Conseco's insurance products; (5) performance of our investments; (6) changes in the Federal income tax laws and regulations which may affect the relative tax advantages of some of Conseco's products; (7) increasing competition in the sale of insurance and annuities and in the finance business; (8) regulatory changes or actions, including those relating to regulation of financial services affecting (among other things) bank sales and underwriting of insurance products, regulation of the sale, underwriting and pricing of products, and health care regulation affecting health insurance products; (9) the outcome of Conseco's efforts to sell assets and reduce, refinance or modify indebtedness and the availability and cost of capital in connection with this process; (10) actions by rating agencies and the effects of past or future actions by these agencies on Conseco's business; and (11) the risk factors or uncertainties listed from time to time in Conseco's filings with the Securities and Exchange Commission.

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