First Health Reports Record Results: 23% EPS Growth for Quarter

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

FOR IMMEDIATE RELEASE

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DOWNERS GROVE, Illinois, April 28, 2003 - Edward L. Wristen, President and Chief Executive Officer of First Health Group Corp. (NASDAQ: FHCC), announced today the results of operations for the first quarter ended March 31, 2003.

Highlights for the quarter include:

• Record revenue of $213.8 million, up 26% from 1Q 2002
• Record net income of $36.8 million, up 19% from 1Q 2002
• Record EPS of $.37, up 23% from 1Q 2002

In a quarter that produced record results, diluted earnings per share (EPS) and net income for the three months ended March 31, 2003 increased 23% to $.37 or $36,841,000 compared with $.30 or $31,014,000 during the same period last year. Revenues for the three months ended March 31, 2003 increased 26% to $213,753,000 from $169,361,000 during the same period last year.

“We had a strong first quarter which positions us well for a fourth consecutive year of approximately 20 percent EPS growth,” said Wristen. “The addition of numerous new clients, including the administration business of the Mail Handlers Benefit Plan, effective July 1, 2002, contributed to the successful first quarter.”

Additionally, Mr. Wristen commented that he expects continued strong growth in 2003 revenue to approximately $870 million and EPS in the range of $1.50 to $1.55.

Conference Call and Webcast
First Health Group Corp. will be hosting a conference call and webcast on Monday, April 28 at 9 a.m. Central Standard Time to discuss the Company’s first quarter results. The quarterly conference call will be available on a live webcast from the Company’s website (www.firsthealth.com). The webcast is open to all interested parties on a listen-only basis. Individuals who listen to the call will be presumed to have read First Health’s annual report or Form 10-K for the year ended December 31, 2002, and Quarterly Report on Form 10-Q for the three months ended March 31, June 30, and September 30, 2002.

Business Description
First Health, the premier national health-benefits services company, specializes in providing large payors with integrated managed care solutions. First Health is a unique national managed care company serving the group health, workers’ compensation and state agency markets. Using technology to enable service and managed care innovations, First Health sets the bar for industry performance. For more information, visit the company website at www.firsthealth.com.

Forward-Looking Statements Notice
Certain statements herein regarding anticipated financial results for 2003 and the Company’s business 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) control health care benefit expenses, or (iv) successfully integrate the recently acquired Mail Handlers Benefit Plan administrative assets. All forward-looking statements herein are made as of the date hereof and the Company undertakes no obligation to update such statements.

First Health Group Corp.
(000's Omitted Except EPS and Percentages)
(Unaudited)