Conseco Issues Statement.

Business Editors

CARMEL, Ind.--(BUSINESS WIRE)--April 10, 2000

Conseco, Inc. (NYSE:CNC) today issued the following statement in response to comments about the company published in the April 17, 2000 issue of BusinessWeek magazine.

We believe that, in the current emotional market for Conseco securities, this and other news accounts are ignoring many key facts about the company. Such coverage does a disservice to our investors, our employee associates, and our customers. In the interest of fairness and accuracy, we state the following:

The holding company's financial condition is strong and stable and we are ready and able to support Conseco Finance until its sale. As we previously stated, we are confident that we have adequate liquidity to fund loan originations and meet our other cash needs, including all of the approximately $966 million of holding company debt we are required to either renew or repay late this year. We currently have substantial liquid assets on our balance sheet, as well as warehouse lines and other facilities, to fund the inventory of Conseco Finance loans that have not yet been securitized. We met our first quarter 2000 target of a cash coverage ratio at the parent company in excess of 200 percent, and we expect to exceed 200 percent cash coverage for the full year, as well. Our March 31, 2000 debt-to-capital ratio, as calculated by the rating agencies and taking into account the previously announced writedown of our interest-only security, is expected to be approximately 45 percent -- well within the target range the rating agencies expect for a company with our current debt ratings.

Our insurance subsidiaries are well capitalized and continue to exceed their targets for internal growth (as measured by premiums). The consolidated risk-based capital ratio of Conseco's insurance subsidiaries was more than 270 percent at year-end 1999, substantially higher than required levels, and up significantly from the year-end 1998 level of 231 percent. When results for 1Q00 are announced in late April, we expect to report that collections on insurance and asset accumulation products for the quarter significantly exceeded our 15 percent year-over-year target.

Based on responses to date, we are optimistic that we will reach a successful sale of Conseco Finance. Our goal is to reach a definitive agreement on the sale by early 3Q00. As we previously stated, our investment bankers tell us that they have received a number of unsolicited inquiries from highly qualified prospects. Completion of the announced transaction will allow us to renew our focus on our core strengths -- insurance operations and investment management -- where we have compiled a highly successful operating record.

We expect to file our Form 10-K for 1999 (including an unqualified auditor's opinion) by the end of this week. As we previously stated, we expect that the income we announced for 1999 of $962.2 million will be reduced by approximately $350 million (after tax) as a result of the adjustment of the value of the interest-only security.

We believe the above actions indicate that we are working hard to refocus our operations and to regain the confidence of investors. As this effort continues, we are committed to providing the information investors need to assess our progress.

Headquartered in Carmel, Ind., Conseco is one of middle America's leading sources for insurance, investment and lending products. Through its subsidiaries and a nationwide network of distributors, Conseco helps 13 million customers step up to a better, more secure future.

World Wide Web    http://www.conseco.com
Investor Hotline  800.4.CONSECO
Fax-on-Demand     800.344.6452

Note on forward-looking statements: All statements, trend analyses and other information contained in this press release and elsewhere (such as in filings by Conseco with the Securities and Exchange Commission, press releases, presentations by Conseco or its management or oral statements) relative to markets for Conseco's products and trends in Conseco's operations or financial results, as well as other statements including words such as "anticipate," "believe," "plan," "estimate," "expect," "intend," "should," "could," "goal," "target," "on track," "comfortable with" and other similar expressions, constitute forward-looking statements under the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to known and unknown risks, uncertainties and other factors which may cause actual results to be materially different from those contemplated by the forward-looking statements. Such factors include, among other things: (1) general economic conditions and other factors, including prevailing interest rate levels, stock and credit market performance and health care inflation, which may affect (among other things) Conseco's ability to sell its products, its ability to make loans and access capital resources and the costs associated therewith, the market value of Conseco's investments, the lapse rate and profitability of policies, and the level of defaults and prepayments of loans made by Conseco; (2) Conseco's ability to achieve anticipated synergies and levels of operational efficiencies; (3) customer response to new products, distribution channels and marketing initiatives; (4) mortality, morbidity, usage of health care services and other factors which may affect the profitability of Conseco's insurance products, (5) performance of our investments; (6) changes in the Federal income tax laws and regulations which may affect the relative tax advantages of some of Conseco's products; (7) increasing competition in the sale of insurance and annuities and in the finance business; (8) regulatory changes or actions, including those relating to regulation of financial services affecting (among other things) bank sales and underwriting of insurance products, regulation of the sale, underwriting and pricing of products, and health care regulation affecting health insurance products; (9) the outcome of the contemplated sale process relating to Conseco Finance Corp., and (10) the risk factors or uncertainties listed from time to time in Conseco's filings with the Securities and Exchange Commission.