UnitedHealth Group Awarded Contract to Manage the AARP Pharmacy Service.

Business Editors & Medical Writers

MINNEAPOLIS--(BUSINESS WIRE)--April 19, 2001

UnitedHealth Group (NYSE:UNH), through its Ovations business segment, has been awarded a contract by AARP and AARP Services Inc. to manage the AARP Pharmacy Service beginning on June 1, 2001. UnitedHealth Group will apply its proven health and well-being capabilities to provide overall management and direction to the Pharmacy Service.

The AARP Pharmacy Service provides prescription drugs and health and well-being products to AARP members nationally. Currently, more than 1.6 million AARP members use the Pharmacy Service, which will generate approximately $350 million in annual revenue for UnitedHealth Group. Both UnitedHealth Group and AARP see significant opportunity to grow the Service by increasing access to needed and more affordable prescription drugs and related products for older Americans.

As a part of its management of the Service, UnitedHealth Group will direct the clinical education, marketing, new product development, and customer service functions. UnitedHealth Group has also subcontracted with Express Scripts, Inc. to provide mail order fulfillment and the retail pharmacy network. The AARP Pharmacy Service will be headquartered in the UnitedHealth Group offices in Minnesota. UnitedHealth Group will operate the Roanoke, Virginia customer service center operated by the current AARP Pharmacy Service provider, Retired Persons Services, Inc. (RPS). Express Scripts will operate the Horsham, Pennsylvania mail fulfillment center currently operated by RPS.

UnitedHealth Group already has substantial experience serving AARP and its members. Through the AARP Health Care Options program, UnitedHealth Group currently provides Medicare Supplement and Hospital Indemnity insurance to 3.6 million people. As part of this offering, UnitedHealth Group manages a discount pharmacy program for members holding AARP Medicare Supplement Plans with prescription drug coverage. This program simplifies reimbursements, screens for dangerous drug interactions, and provides AARP members with substantial savings on their prescription drugs.

"We look forward to managing the AARP Pharmacy Service on behalf of AARP members," said Lois Quam, CEO of Ovations. "Pharmaceuticals are playing an increasingly important role in helping older Americans lead longer, happier, more productive lives. This Service will allow us to develop and provide a broader range of new products and services that can result in improved cost-savings and greater access to prescription drugs and other health and well-being products for AARP members."

AARP members can continue to use the Pharmacy Service as usual. Additional information will be provided to AARP members as the program transition begins to occur.

AARP is the nation's leading organization for people 50 and older. It serves their needs and interests through information and education, advocacy, and community services that are provided by a network of local chapters and experienced volunteers throughout the country. The organization also offers members a wide range of special benefits and services, including Modern Maturity, the Monthly Bulletin and My Generation magazine.

AARP Services Inc. is a subsidiary operated independently of AARP that provides marketing and quality control services, develops new products and manages a range of products and services made available to AARP members through outside vendors such as UnitedHealth Group.

Express Scripts is one of the largest pharmacy benefit managers in North America. Through facilities in seven states and Canada, the company provides pharmacy network management, mail and Internet pharmacies, formulary management, targeted clinical programs, integrated drug and medical data analysis, market research programs, medical information management, workers' compensation programs and informed-decision counseling. Express Scripts is headquartered in St. Louis, Missouri.

UnitedHealth Group (www.unitedhealthgroup.com) is a diversified health and well-being enterprise that provides a full spectrum of resources and services to help people achieve improved health and well-being through all stages of life. UnitedHealth Group is organized into six businesses: UnitedHealthcare, Uniprise, Ovations, Specialized Care Services, Ingenix and UnitedHealth Capital. In 2000, the company achieved record revenues of $21 billion while improving the health and well-being of more than 35 million people.

Forward-Looking Statements

Statements that UnitedHealth Group may publish, including those in this announcement, that are not strictly historical are "forward-looking" statements under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks, which may cause actual results and corporate developments to differ materially from expectations. This includes, without limitation, the effects of state and federal regulations, the effects of acquisitions and divestitures, and other risks described from time to time in each of UnitedHealth Group's SEC reports, including quarterly reports on Form 10-Q, annual reports on Form 10-K, and reports on Form 8-K.