Coventry Health Care Agrees to Acquire Certain Mutual of Omaha Group Health Insurance Businesses.

BETHESDA, Md. -- Coventry Health Care, Inc. (NYSE:CVH) announced today that it has signed a definitive agreement to acquire certain group health insurance businesses from Mutual of Omaha. Coventry will acquire Mutual of Omaha's commercial employer group health business in Nebraska and Iowa as well as their national Federal Employees Health Benefits (FEHB) administration business, representing approximately 215,000 members in total.

"I am pleased to announce a significant transaction for our Commercial Business Division," said Thomas P. McDonough, President of Coventry. "This acquisition will enhance Coventry's position in both our Nebraska and Iowa local health plan markets and our national FEHB administrative business. We look forward to carrying on Mutual of Omaha's commitment to the local health plan business and their tradition of providing superior service levels to employer groups and federal programs."

Coventry will acquire Mutual of Omaha's group health insurance businesses for $120.0 million in an all-cash transaction expected to close in 60 to 120 days, subject to closing conditions, regulatory and other customary approvals. The Nebraska and Iowa group health business, including both fully-insured and self-funded customers, represents approximately 100,000 members and approximately $100 million in revenue. The FEHB business represents approximately 115,000 members and approximately $30 million in fee-based revenue. The transaction is projected to be slightly accretive to earnings in the first year after closing.

This press release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are defined as statements that are not historical facts and include those statements relating to future events or future financial performance. Actual performance may be significantly impacted by certain risks and uncertainties, including those described in Coventry's Annual Report on Form 10-K for the year ended December 31, 2006. Coventry undertakes no obligation to update or revise any forward-looking statements.

Coventry Health Care (www.cvty.com) is a diversified national managed healthcare company based in Bethesda, Maryland, operating health plans, insurance companies, network rental and workers' compensation services companies. Through its Commercial Business, Individual Consumer & Government Business, and Specialty Business Divisions, Coventry provides a full range of risk and fee-based managed care products and services to a broad cross section of individuals, employer and government-funded groups, government agencies, and other insurance carriers and administrators.