CORRECTED: Savett Frutkin Podell & Ryan, P.C. Announces Class Action Lawsuit Against Aetna, Inc.

Business Editors/Legal Writers

PHILADELPHIA--(BUSINESS WIRE)--Dec. 10, 2001

Savett Frutkin Podell & Ryan, P.C. hereby gives notice that a class action complaint was filed on behalf of a class of persons who purchased the common stock of Aetna, Inc. ("Aetna" or the "Company") (NYSE: AET) between December 1, 2000 and April 9, 2001 ("Class Period") and who were damaged thereby.

The complaint was filed against Aetna and its chief executive officer, John W. Rowe, and its chairman, William H. Donaldson, in the United States District Court for the Eastern District of Pennsylvania (Case No. 01-CV-6021), 601 Market Street, Philadelphia, PA 19106. The case has been assigned to Judge Padova. A copy of the complaint is available from the Court or you may visit our web site at www.savettlaw.com.

The Complaint charges defendants with violations of sections 10(b) and 20(a) the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. The Complaint alleges that during the Class Period, defendants announced that they had reached a definitive agreement to sell Aetna's financial services and international businesses to ING Groep N.V. and, in an integrated transaction, that Aetna planned to spin-off its domestic healthcare and large case pensions businesses in the form of New Aetna, to its shareholders. The complaint alleges that defendants misled the investing public by falsely representing, among other things, that the New Aetna was implementing a number of strategic and operative initiatives which addressed among other things rising medical costs and improved the efficiency of the operations and that the New Aetna had adequate reserves for its medical expenses. In truth and in fact, the Company had recorded inadequate reserves for its medical expenses and was experiencing escalating medical costs due to a number of factors: (a) significant problems in its overpayment of claims or paying single claims multiple times; (b) inadequate pricing for risk enrollment; (c) adverse selection; (d) provider reimbursement rates, contracting issues; and (e) increased short term utilization.

Then, on April 10, 2001, before the market opened, Aetna shocked the investing community by announcing that the Company's first quarter 2001 results were expected to be significantly lower than estimated as a result of increased medical costs due to higher utilization of healthcare services in the fourth quarter 2000 and the first quarter 2001. The Company announced that it expected to record in the first quarter approximately $90 million before tax of additional medical costs related to services performed in prior periods, primarily the fourth quarter 2000.

As a result of this announcement, the price of Aetna's common stock plunged from $36.15 on April 9, 2001 to a low of $28.75 on April 10, 2001, on heavy trading volume.

If you purchased the common stock of Aetna between December 1, 2000 and April 9, 2001 and wish to be appointed lead plaintiff in this action you must file a motion with the Court no later than January 7, 2002. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Savett Frutkin Podell & Ryan, P.C., or other counsel of your choice, to serve as your counsel in this action.

Plaintiff seeks to recover damages on behalf of all purchasers of Aetna common stock during the Class Period. Plaintiff is represented by Savett Frutkin Podell & Ryan, P.C. which has extensive experience representing shareholders in class actions and has successfully recovered hundreds of millions of dollars for defrauded investors and shareholders. The reputation and expertise of the firm in shareholder and other class action litigation has been repeatedly recognized by the courts which have appointed the firm to major positions in complex class actions. Savett Frutkin Podell & Ryan, P.C. was one of the lead counsel in a previous class action against Aetna Inc. which settled for $82.5 million dollars.

If you are a member of the proposed Class, you may contact this firm by visiting our web site at http://www.savettlaw.com/, by e-mail at [e-mail] or at the telephone numbers or address listed below for information concerning the lawsuit. If you purchased the common stock of Aetna during the Class Period or have questions or information regarding this action or your rights, you may call or write Robert P. Frutkin, Esq. or Renee C. Nixon of Savett Frutkin Podell & Ryan. P.C. at 800/993-3233 or via e-mail at [e-mail].

CONTACT: Robert P. Frutkin, Esquire

Renee C. Nixon, Paralegal 

Savett Frutkin Podell & Ryan, P.C.

325 Chestnut Street, Suite 700

Philadelphia, PA 19106

Telephone: [phone] or [phone]

E-mail: [e-mail]

Website: http://www.savettlaw.com/