Clear Choice Settles Litigation with State of Oregon.

BEND, Ore. -- Clear Choice Health Plans, Inc. (OTCBB: CCHN) today announced it has settled litigation with the State of Oregon related to a dispute over reimbursements from 1997 to 2002 under the Oregon Health Plan (OHP).

Clear Choice said it will receive $1 million as part of the settlement in a lawsuit it filed against the State in 2003, which alleged that rate calculation errors were made in connection with certain OHP reimbursements. OHP provides health care coverage for more than 380,000 low-income Oregonians.

"Given today's economic realities and following a cost-benefit analysis, we decided to settle this longstanding matter and move forward in partnership with the State to assure the best possible outcomes for OHP participants," said Patricia Gibford, president and CEO of Clear Choice.

About Clear Choice Health Plans

Clear Choice offers affordable health plans to meet the needs of employers, providers and consumers. The company provides health insurance, including Medicare Advantage plans, commercial plans, individual plans and administrative services to individuals and businesses throughout the region. The company also offers life, disability, dental, vision and voluntary benefits programs. Clear Choice is dedicated to the development of community-based health insurance plans. For information call 888-677-5852 or visit www.clearchoicehp.com.