GOOD NEWS FOR WELLPOINT FORECAST: PROFITS UP 15 PERCENT.

Byline: Chris Sieroty Staff Writer

THOUSAND OAKS - WellPoint Health Networks Inc. is expected to report third-quarter earnings today after the market closes that are 15 percent higher than the same period last year.

Analysts surveyed by First Call/Thomson Financial predict the Thousand Oaks-based managed-care provider will report earnings of $1.30 per share for the third-quarter 2000, compared with $1.11 for the same period a year ago.

``The company continues to enjoy very solid positioning in its markets, leading to upside in our estimates as well as further clarity on the completion of the Cerulean merger, which we anticipate to be accretive to 2001 earnings,'' said Lehman Brothers analyst Larry Marsh.

Marsh added, ``As shares have risen some 35 percent since June 30, we are raising our price target to $120 based on 20 times the earnings potential of some $6 per share in 2001.''

WellPoint, in its quiet period before releasing earnings, would not comment this week.

Cerulean Companies Inc. shareholders recently approved the $500 million merger with WellPoint. Under the merger's terms, upon closing of the deal, each shareholder will receive approximately $850 in cash or WellPoint securities for each Cerulean share held.

WellPoint expects the Cerulean merger to close in December.

Based in Atlanta, Cerulean Companies is the parent of Blue Cross and Blue Shield of Georgia Inc. Blue Cross and Blue Shield provide health benefits to more than 1.7 million Georgians.

WellPoint Health Networks serves 6.9 million medical members and nearly 27 million specialty members nationally through Blue Cross of California and Unicare throughout other parts of the country.

Shares of WellPoint gained $2.75, or 2.74 percent, to close Tuesday at $103.25 on moderate volume of 377,000 shares traded on the New York Stock Exchange.