A.M. Best Assigns Ratings to the Former Subsidiaries of WellChoice, Inc.; Takes Various Rating Actions on WellPoint Inc.

OLDWICK, N.J. -- A.M. Best Co. has assigned a financial strength rating (FSR) of A- (Excellent) and issuer credit rating (ICR) of "a-" to Empire HealthChoice Assurance, Inc. and Empire HealthChoice, Inc. (HMO), former subsidiaries of WellChoice, Inc. (New York, NY). The rating outlook is positive. Additionally, A.M. Best has upgraded the FSRs to A- (Excellent) from B++ (Very Good) on WellPoint Inc.'s (WellPoint) (NYSE: WLP) (Indianapolis, IN) Wisconsin subsidiaries. These ratings have a stable outlook.

Concurrently, A.M. Best has affirmed all the FSRs and debt ratings, assigned ICRs to WellPoint and its subsidiaries and assigned ratings to Wellpoint's new shelf registration. The rating outlook is stable.

The rating actions on the former WellChoice, Inc. subsidiaries reflect the completion of the merger with WellPoint, as well as the strong earnings, market strength and capitalization at Empire HealthChoice Assurance Company and Empire HealthChoice HMO. Offsetting factors include a highly competitive environment and integration risks associated with any merger.

Empire HealthChoice Assurance Company and Empire HealthChoice HMO both have produced underwriting gains in excess of $100 million for the past two years, and 2005 is expected to be comparable. Both companies combined insure approximately 5 million members with a leading market share in the New York City metropolitan area and strong brand name recognition. Empire HealthChoice Assurance, the parent of Empire HealthChoice HMO, is more than adequately capitalized for its rating level, with risk-based capital of greater than 500%. Offsetting factors include the highly competitive New York City environment with many carriers vying for business. Furthermore, there are integration risks associated with any merger. However, WellPoint has successfully completed numerous mergers in the past, which will help to mitigate some of the risk. Additionally, these entities will benefit from the strength of WellPoint and its position in the Northeast, including Connecticut.

A.M. Best has upgraded the FSRs to A- (Excellent) from B++ (Very Good) and assigned ICRs of "a-" to WellPoint's Wisconsin subsidiaries, which include Blue Cross Blue Shield of Wisconsin, Compcare Health Services Insurance Corporation and Valley Health Plan. The rating actions on these entities are based upon the strength and financial support of WellPoint.

WellPoint has a diversified source of earnings, solid capitalization, strong operating cash flows and earnings growth. WellPoint is one of the largest health benefits company in the United States, with businesses throughout the nation that serve approximately 34 million medical members. The company is well diversified across business segments and geographically, with the bulk of its operations now concentrated in 14 strategic states and additional business in several other states. In A.M. Best's opinion, WellPoint's diversified revenue sources and consistent profitability reduce its dependence upon any one customer or segment. Consequently, strong earnings, especially in the West, Central and East regions of the United States, provide good dividend capacity while maintaining strong risk-based capital positions well above the minimum required by regulators and the Blue Cross Blue Shield Association. A.M. Best remains concerned regarding WellPoint's growing capital structure exposure to goodwill impairment. WellPoint's continued acquisitions and mergers can continue to grow this exposure, which could negatively impact the firm's capital structure. Debt-to-tangible capital was 78.3% at year-end 2004 and should increase to approximately 85% at the end of 2005, reflecting the close of the WellChoice transaction.

For a complete listing of WellChoice, Inc.'s and Wellpoint Inc.'s financial strength, issuer credit and debt ratings, please visit http://www.ambest.com/press/122901wellpoint.pdf.

For Best's Debt Ratings, all other Best's Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.

A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at www.ambest.com.