First Health Completes Acquisition Of Operational Assets From CNA To Administer Mail Handlers Union Benefit Plan

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

FOR IMMEDIATE RELEASE

DOWNERS GROVE, IL -July 1, 2002 - First Health Group Corp. (NASDAQ: FHCC) today completed its acquisition of the operational and administrative assets from CNA to maximize First Health's resources as it assumes responsibility for the Mail Handlers Benefit Plan, effective today.

First Health reached a definitive agreement in early June to acquire these assets from CNA in a transaction valued at $20 million. Included in the transaction, is the transfer of approximately 1,000 CNA employees and related assets, which support the Mail Handlers Benefit Plan offices in Rockville, Jacksonville, San Antonio, Mesa and Chicago. 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.

"I am extremely pleased with bringing on the very knowledgeable and experienced Mail Handlers Benefit Plan administrative employees to the First Health family and look forward to a long and mutually beneficial relationship," said Edward L. Wristen, President and CEO of First Health.

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 web site at www.firsthealth.com.