Conseco Finance Polishes Off 10.25% of June '02 Tenders Again for Final $8 Million of Public Debt.

Business Editors

INDIANAPOLIS--(BUSINESS WIRE)--June 4, 2002

Conseco, Inc. (NYSE:CNC)

98% of Conseco Finance Public Debt Eliminated

$400 million plus retired in last 10 months

Conseco, Inc. (NYSE:CNC) announced today that yesterday, June 3, its subsidiary, Conseco Finance, retired the remaining outstanding 10 1/4% Senior Subordinated Notes under the terms of the notes. The amount paid yesterday to noteholders was $34.8 million. This amount was the remaining outstanding principal following early retirement of $75.8 million on March 6 under the terms of a January 31 tender offer.

With the retirement of this debt yesterday, TOTAL public debt due from Conseco Finance is $8.1 million, the amount of 6.5% Notes due in September this year that remained outstanding after $158.6 of these notes were retired early under the terms of a February 21 tender offer.

Since the beginning of this year, Conseco Finance has retired $320 million of its outstanding public debt. Just 10 months ago it had $418 million of public debt outstanding. The only remaining debt now is the $8.1 million due this September. But, Conseco Chairman and CEO, Gary Wendt, said today that the company would tender again for the last remnant of Conseco Finance public debt.

Commenting on the unusual practice of tendering twice for a future principal maturity, Mr. Wendt said, "We have been very aggressive about debt repayment at Conseco Finance because it is a strong operation with considerable resources. After retiring more than 90% of our Conseco Finance public debt early, I have been a little surprised not to see greater recognition of this. So we're going after our last $8 million to drive the point home. Although it should go without saying, companies don't pay off debt early if they are troubled credits."

Wendt praised the Finance unit for its success through the first 5 months of the year. "The entire Conseco Finance team is to be commended for the terrific performance," said Wendt. "The cash they have produced while battling a slow economy says a lot about their determination and about the strength of the core business at Conseco Finance."

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