AMERIGROUP Corporation and Prudential Healthcare Finalize Maryland Medicaid Business Deal.

VIRGINIA BEACH, Va.--(BUSINESS WIRE)--June 1, 1999--

AMERIGROUP(R) Corporation, a leader in providing REALCaring(SM) health care to the poor and uninsured, announced today that they have finalized a deal to acquire Prudential HealthCare's Maryland Medicaid line-of-business.

The official transition of business from Prudential HealthCare Mid-Atlantic to AMERIGROUP occurs today.

This acquisition marks the birth of AMERIGROUP Maryland, Inc., a Managed Care Organization. This subsidiary of AMERIGROUP Corporation will be responsible for managing the wellness of over 80,000 Medicaid members in Maryland. Subsequently, AMERIGROUP will be finalizing a deal this summer, where AMERIGROUP will acquire Prudential HealthCare's DC Medicaid business. This additional transaction will result in AMERIGROUP Maryland being responsible for improving the health status of over 90,000 members in the Mid-Atlantic area.

"We look forward to the opportunity to provide our AMERICAID and AMERIKIDS health care services to the thousands of families and community support organizations throughout the Mid-Atlantic region. Garnering trust takes time and we are fully engaged and working hard to proving that we care," said Jeffrey L. McWaters, Chairman and CEO of AMERIGROUP Corporation.

In anticipation of this closing, AMERIGROUP has been diligently working to establish partnerships with providers and community based organizations. AMERIGROUP believes that to be an effective health care provider requires establishing partnerships with their provider network and local community leaders. Having such alliances assists in comprehending the needs of the Medicaid population. This will enable AMERIGROUP to develop health and safety awareness programs that will prove beneficial for members and the local communities.

"Prudential HealthCare is pleased we were able to work with AMERIGROUP, a dynamic organization, who is committed to quality," said Alan Silverstone, Prudential HealthCare's Northeast Division President. "We expect a very smooth transition for our members that result in no changes to their benefits or opportunity to access health care coverage."

Prudential HealthCare, a business unit of The Prudential Insurance Company of America, serves 5 million managed health plan members in more than 40 major metropolitan locations across the country.

AMERIGROUP is a leader in providing REALCaring managed health care services to the public sector through its Medicaid program, AMERICAID Community Care. With service center and home office operations in Virginia Beach, VA, the Company operates in Illinois, New Jersey, Maryland and Texas. AMERIGROUP will serve over 225,000 Medicaid recipients nationally, of which over 130,000 are children. The Company has become the largest private company exclusively serving health care needs of low-income moms and kids in the country.

For more information about AMERIGROUP's unique products or services, visit our web site at http://www.amerigroupcorp.com or contact Debra Bodnar at 757-490-6900.

For more information from Prudential HealthCare, visit their web site at http://www.prudential.com/healthcare or contact Robert Kremer at 770-801-7146.