First Health Acquires Operational Assets From CNA to Administer Mail Handlers Union Benefit Plan
$20 Million Acquisition Includes Transfer of CNA Employees as First Health Prepares to Assume Responsibility for Plan on July 1

Contact: 
Edward L. Wristen
President and CEO
or 
Joseph E. Whitters
CFO 
First Health 
630-737-7511
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FOR IMMEDIATE RELEASE

DOWNERS GROVE, IL (June 4, 2002) – Edward L. Wristen, President and Chief Executive Officer of First Health Group Corp. (NASDAQ: FHCC) announced today that the Company has entered into a definitive agreement to acquire operational and administrative assets from CNA to maximize First Health’s resources as it assumes responsibility for the Mail Handlers Benefit Plan effective July 1.  The acquisition will eliminate the need for typical implementation efforts and will allow First Health full use of its corporate implementations team to bring on other business.

The acquisition, a $20 million transaction, includes the transfer of approximately 1,000 CNA employees and assets, which support the Mail Handlers Benefit Plan offices in Rockville, Jacksonville, San Antonio, Mesa and Chicago. These employees will assume the same function for First Health, providing the Company with an experienced team of personnel already accustomed to administering the one-million-member plan. Mr. Wristen announced last month that the Company had been awarded the $1.3 billion Mail Handlers contract, the largest in the history of First Health.

"Bringing in a large team of experienced colleagues with invaluable knowledge regarding the plan and its members is helpful to an orderly, seamless transition," said Mr. Wristen. "Keeping the operation intact for the Mail Handlers Benefit Plan will allow us to dedicate our full capabilities across the Company to serving new and existing clients and simultaneously taking advantage of the significant benefits this business brings to us. Just as important, this acquisition allows First Health to maintain the same high level of service, focus and commitment to all of our existing valued clients."

Additionally, Mr. Wristen noted that the assumption of this contract effective July 1 will increase the Company's estimated revenue range to approximately $750 million and EPS for the year increases slightly from the $1.25 guidance. First Health, the nation's premier full-service health benefits company, specializes in providing large employers with one integrated source for group health and workers' compensation. By combining pioneering technology with expert industry knowledge, First Health delivers comprehensive, cost-effective solutions for its clients nationally. For more information, visit the Company website at www.firsthealth.com.