Coventry Health Care And Rite Aid Announce Intent To Form Part D Collaboration.

BETHESDA, Md. -- Coventry Health Care, Inc. (NYSE:CVH) today announced it intends to enter into a strategic relationship with Rite Aid Corporation (NYSE, PCX:RAD), the third largest drugstore chain in the U.S., to help serve members under the new "Part D of Medicare."

The Part D program, created as part of Title I Medicare Modernization Act, will take effect January 1, 2006. Coventry has proposed to the Centers for Medicare and Medicaid Services (CMS) to offer various Medicare Part D plans on a nationwide basis, in accordance with guidelines put forth by the agency.

Under the arrangement, Coventry and Rite Aid would jointly coordinate various community outreach and educational activities for Medicare Beneficiaries seeking to learn more about their Part D choices, beginning in the fourth quarter of 2005. There are also plans to have in-store experts available to help Rite Aid customers understand their Part D options.

"Coventry looks forward to serving Medicare beneficiaries under the Part D program," said Dale B. Wolf, Coventry's chief executive officer. "We have a large, national pharmacy network and we already serve Medicare Beneficiaries with a variety of programs in a number of regions, including pharmacy programs for low-income seniors. We are pleased to now add to that background a partnership with Rite Aid and its thousands of associates who are actively involved in their communities."

"Rite Aid is looking forward to working with Coventry to help seniors benefit from the new Medicare prescription drug plan," said Mary Sammons, Rite Aid president and CEO. "We know seniors will have a lot of questions about the benefit and many will ask our pharmacists for help in determining what plan is best for them. They also need clear information on the use of their prescriptions as well as other medications they take. We are pleased to see that Coventry is making education a central part of its prescription drug program offerings."

Coventry is a national managed health care company based in Bethesda, Maryland operating health plans, insurance companies, network rental services companies, and workers' compensation services companies. Coventry provides a full range of risk and fee-based managed care products and services, including HMO, PPO, POS, Medicare Advantage, Medicaid, Workers' Compensation and Network Rental to a broad cross section of employer and government-funded groups, government agencies, and other insurance carriers and administrators in all 50 states as well as the District of Columbia and Puerto Rico. More information is available on the Internet at www.cvty.com.

Rite Aid is one of the nation's leading drugstore chains with annual revenues $16.8 billion and approximately 3,400 stores in 28 states and the District of Columbia. Information about Rite Aid, including corporate background and press releases, is available through the company's website at www.riteaid.com.

This press release may contain forward-looking statements, made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, 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, 2004, as filed with the SEC.