Department of Justice Requests Additional Information
on First Health's Plan to Acquire CCN Managed Care

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

FOR IMMEDIATE RELEASE

DOWNERS GROVE, IL – July 2, 2001  –  First Health Group Corp. (NASDAQ:  FHCC)  announced they intended to reply promptly to requests received today from the US Department of Justice for additional information under Hart-Scott-Rodino Antitrust Improvement Act of 1976 regarding its proposed acquisition of CCN Managed Care.;

On May 21, 2001, First Health announced a definitive agreement to acquire CCN, a national group health, workers’ compensation and auto managed care company based in San Diego, CA from HCA  (NYSE:  HCA).  The transaction, valued at $195 million is to be paid in cash.  CCN was acquired by HCA in 1997 through its acquisition of Value Health. 

The effect of the second request is to extend the waiting period imposed by the HSR Act until 30 days after the parties have substantially complied with the request unless that period is extended voluntarily by the parties, or terminated sooner by the FTC. 

First Health, the nation’s premier full-service national 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.

CCN is a non-risk managed care company offering workers’ compensation, group health and auto injury management programs that reduce total claims costs – medical, indemnity and legal – while improving health care outcomes.  Approximately 32 million people in 50 states and the District of Columbia benefit from CCN programs and services.  CCN manages more than $6 billion in health care costs annually.  CCN can be found on the internet at www.ccnusa.com.

Certain statements regarding the Company’s business and growth prospects are forward-looking statements that involve substantial risks and uncertainties.  In accordance with the Private Securities Litigation Reform Act of 1995,  factors that could cause the Company’s actual results to differ materially from those expressed or implied by such forward-looking statements include, among others, the inability of the Company to continue to:  (i) enter into contracts with and successfully implement programs for new clients within the time frame established by the Company and achieve the revenue growth expected to result from the addition of such clients,  (ii) expand its group health, workers’ compensation and public sector business,  (iii) achieve the growth in the group health area that is anticipated as a result of the Company’s strategy of focusing on larger, multi-sited national employers,  (iv) control healthcare benefit expenses,  (v) operational cost synergies anticipated as a result of the CCN acquisition, or  (vi) ability to timely add HCA facilities to the First Health Medical Network.  All forward-looking statements herein are made as of the date hereof and the Company undertakes no obligation to update such statements.