Coventry Health Care Expands Through Acquisition of Altius Health Plans.

Business Editors/Health/Medical Writers

BETHESDA, Md.--(BUSINESS WIRE)--July 9, 2003

Coventry Health Care, Inc. (NYSE:CVH) announced today that it has signed a definitive agreement to acquire Altius Health Plans Inc. (Altius). Altius is a privately-owned, Utah-based commercial-only health plan with total membership of approximately 160,000 consisting of 116,000 risk and 44,000 non-risk members and annual revenues of approximately $235 million.

"I am pleased to announce another new market expansion," said Allen F. Wise, President and Chief Executive Officer of Coventry. "Earlier this year we completed the PersonalCare acquisition which opened up the central Illinois market for us. With the Altius acquisition, we are entering the Utah market with considerable mass through a well-run local health plan. Our proven business model will allow Coventry to continue to provide high quality health care to the current members of Altius, while enhancing service to employer and provider customers. We will continue to be opportunistic in growing our company through acquisition, both in existing and new markets, as well as growing through organic sales efforts which have been yielding excellent results thus far in 2003."

Coventry will purchase the stock of Altius for up to $41.0 million in cash, subject to certain balance sheet true-up and other provisions. Included in the purchase price is approximately $6.5 million of current statutory net worth. The transaction is expected to close late in the third quarter of 2003, subject to closing conditions, regulatory and other customary approvals. The transaction is expected to be $0.01 accretive to earnings in 2003 and $0.06 in 2004.

Coventry Health Care is a managed health care company based in Bethesda, Maryland operating health plans, insurance companies, and provider networks under the names Coventry Health Care, Coventry Health and Life, Carelink Health Plans, Group Health Plan, HealthAmerica, HealthAssurance, HealthCare USA, PersonalCare, SouthCare, Southern Health and WellPath. The Company provides a full range of managed care products and services including HMO, PPO, POS, Medicare+Choice, Medicaid, and Network Rental to 2.9 million members in a broad cross section of employer and government-funded groups in 13 markets throughout the Midwest, Mid-Atlantic and Southeast United States. More information is available on the Internet at www.cvty.com.

This press release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements relate to future events or future financial performance and may be significantly impacted by certain risks and uncertainties described in the Company's Annual Report on Form 10-K for the year ended December 31, 2002 filed with the Securities and Exchange Commission.