Aetna and Priority Healthcare Announce New Pharmacy Partnership.

HARTFORD, Conn. -- Aetna (NYSE: AET) and Priority Healthcare Corporation (Nasdaq: PHCC) today announced a significant expansion of Aetna's specialty pharmacy capabilities, to be achieved through a new, jointly owned, Aetna branded specialty pharmacy business. Priority Healthcare is a leading provider of national specialty pharmacy and distribution services.

The launch of Aetna Specialty Pharmacy, jointly owned by Aetna and Priority Healthcare, will include a 45,000 square foot distribution center which will begin business in 2005 and, when fully operational, will have approximately 300 employees. Aetna formed a specialty pharmacy network in 2000 to provide these medications through contracts with multiple providers. Going forward, Aetna Specialty Pharmacy will be Aetna's exclusive preferred provider for specialty pharmacy distribution services. Aetna will fund initial development costs as well as initial inventory costs. Priority Healthcare will contribute its expertise in the specialty pharmacy business, including clinical programs, personnel and proprietary technology. Terms of the agreement were not disclosed, although the funding is not material to Aetna.

Aetna Specialty Pharmacy will be focused on building a "best in class" specialty pharmacy platform providing leveraged buying power that should lead to reduced health care costs and deliver comprehensive clinical program management for its members. Aetna currently spends more than $1 billion annually on specialty pharmaceuticals, an area with a national growth rate in excess of 20 percent. The companies expect to transition Aetna's specialty pharmacy business to Aetna Specialty Pharmacy by the third quarter of 2005.

"This is a tangible result of Aetna's commitment to strengthen our capacity to reduce medical costs, enhance the scope of our product and service capabilities, and increase our ability to serve new market segments," said John W. Rowe, M.D., chairman and CEO of Aetna. "The result of this innovative partnership will be an Aetna-dedicated, industry-leading operation that will provide biopharmaceuticals, therapies and disease treatment programs to our members. We are especially pleased to be partnering with a proven market leader in the specialty pharmacy field."

"This is a milestone agreement for our company as we see increased revenue from the Aetna relationship," said Steve Cosler, Priority Healthcare president and CEO. "Aetna has been a leader in the management of biopharmaceutical therapies and a valued partner for Priority Healthcare for over five years. We are honored and pleased to be selected by Aetna for this initiative and the management of all therapies and disease states. The relationship between Priority and Aetna is a longstanding one based upon integrity, mutual respect and demonstrated success in partnering to deliver value to Aetna members."

"This venture will create an integrated specialty pharmacy operation that will provide high quality care while seeking to effectively manage the specialty pharmacy expenditures for our membership," said Eric Elliott, vice president and Head of Aetna Pharmacy Management. "Our goal is to enhance Aetna's core pharmacy benefit management competency in a way that benefits our members and employers. A critical component to providing specialty pharmacy care is coordination with physicians; that is a primary focus of this partnership."

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 13.4 million medical members, 11.4 million dental members, 8.1 million pharmacy members and 12.6 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 633,000 health care professionals, including over 377,000 primary care and specialist doctors and 3,866 hospitals. For more information, please visit www.aetna.com. (Figures as of June 30, 2004)

Priority Healthcare Corporation is a national specialty pharmacy and distributor that provides biopharmaceuticals, complex therapies, and related disease treatment services. Priority Healthcare provides comprehensive programs for patients, payors, physicians, and pharmaceutical manufacturers for a growing number of disease states including cancer, hepatitis C, respiratory and pulmonary conditions, infertility, rheumatoid arthritis, hemophilia, multiple sclerosis, and macular degeneration. For more information, please visit www.priorityhealthcare.com.

ADDITIONAL INFORMATION; CAUTIONARY STATEMENT -- Certain information in this press release is forward looking, including, but not limited to, the future benefits expected to be derived from this transaction and expected timing. Forward-looking information is based on management's estimates, assumptions and projections, and is subject to significant uncertainties and other factors, many of which are beyond Aetna's control. Important risk factors could cause actual future results and other future events to differ materially from those currently estimated by management. Those risk factors include, but are not limited to: the ability to successfully develop and integrate the business operations described herein in a timely and cost-efficient manner (including obtaining required regulatory approvals to operate the business on a timely basis); unanticipated increases in medical costs (including increased medical utilization, increased pharmacy costs, and increases resulting from unfavorable changes in contracting or re-contracting), and adverse government regulation.