Blue Cross and Blue Shield of Florida Reports Strong 1999 Performance.

Business Editors/Health & Medical Writers

JACKSONVILLE, Fla.--(BUSINESS WIRE)--Feb. 23, 2000

Blue Cross and Blue Shield of Florida (BCBSF) today reported year-end 1999 consolidated revenues of $4.2 billion - a 20 percent increase over year-end 1998 consolidated revenues of $3.5 billion -- making 1999 the best consolidated revenue performance ever achieved in the company's 54-year history.

"1999 was a phenomenal year and marks our eleventh year of positive financial performance," said R. Chris Doerr, senior vice president and chief financial officer. "We successfully implemented forward-looking solutions that enhanced our financial stability, market leadership, and enabled our members to continue enjoying access to quality and affordable health care."

BCBSF also contributed $67.1 million to policyholder's equity bringing the total to $896.5 million - an eight percent increase over year-end 1998 of $829.4 million.

Policyholders' equity provides a strong foundation to support the development of capabilities that improve health care quality for members while lowering overall costs. The equity enables the company to meet its obligations when claims or expenses are higher than anticipated.

BCBSF is an independent licensee of the Blue Cross and Blue Shield Association, an association of independent Blue Cross and Blue Shield companies. A financially-strong, tax-paying mutual company, BCBSF is subject to the same regulation by the Department of Insurance as other health care organizations operating in Florida. Standard and Poor's affirmed its "A+" financial strength and credit ratings of BCBSF, and A.M. Best Company affirmed its "A" rating. The ratings are based on BCBSF's strong market position, good earnings profile and excellent capitalization. For additional information about BCBSF, visit its World Wide Web site at www.bcbsfl.com.