Aetna Reaches Agreement with Cincinnati Physicians.

HARTFORD, Conn. -- Aetna (NYSE: AET) announced today that it has entered into a settlement with physicians in the greater Cincinnati/Northern Kentucky area which resolves physician reimbursement issues the medical group raised in lawsuits filed in 2002 against a number of national insurers. The agreement has been granted preliminary approval by the Boone Circuit Court and the Hamilton County Court of Common Pleas. If given final approval by the courts, this agreement would conclude the lawsuits against Aetna.

Under the terms of the agreement, Aetna will provide increased physician reimbursement to be paid to physicians in the greater Cincinnati/Northern Kentucky area over a three-year period beginning in 2004. The agreement also includes provision for a compliance committee which, beginning in 2007 and running through 2009, will review reimbursement rate negotiations between physicians and Aetna to ensure that the rates are the product of competitive market forces.

"Today's settlement resolves a highly contested dispute between physicians and Aetna. It also continues an effort Aetna began several years ago to work more collaboratively with physicians, and to improve the health care delivery system in ways that make it easier for physicians and insurers to work together with greater trust," said Allan Greenberg, President of Aetna's North Central region. "We are pleased with this settlement and look forward to better cooperation with physicians in the Cincinnati area as we work together to create a health care system that provides quality affordable medical care for all."

As one of the nation's leading providers of health care, dental, pharmacy, group life, disability and long-term care benefits, Aetna puts information and helpful resources to work for its approximately 13.6 million medical members, 11.6 million dental members, 8.3 million pharmacy members and 13.3 million group insurance members to help them make better informed decisions about their health care and protect their finances against health-related risks. Aetna provides easy access to cost-effective health care through a nationwide network of more than 646,000 health care professionals, including over 385,000 primary care and specialist doctors and 3,908 hospitals. For more information, please visit www.aetna.com. (Figures as of September 30, 2004)