First Health Reports Record Third Quarter Results
Revised 2004 Outlook

Investor Contact:
Joseph E. Whitters, CFO
630-737-7511

Media Contact:
Erin Gardiner, Public Relations Manager
630-737-5016

FOR IMMEDIATE RELEASE

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DOWNERS GROVE, IL – November 3, 2003 - Edward L. Wristen, President and Chief Executive Officer of First Health Group Corp. (NASDAQ: FHCC), announced today the results of operations for the third quarter ended September 30, 2003.

Highlights for the quarter include:

• Record revenue of $220 million, up 7% from 3Q 2002
  
• Record net income of $41 million, up 20% from 3Q 2002
  
• Record EPS of $.42 up 31% from 3Q 2002

Diluted earnings per share (EPS) and net income for the three months and nine months ended September 30, 2003, increased 31% to $.42 or $40,656,000 and 26% to $1.17 or $114,668,000 respectively, compared with $.32 or $33,743,000 and $.93 or $97,241,000 respectively, during the same periods last year. Revenues for the three months and nine months ended September 30, 2003, increased 7% to $219,736,000 from $204,928,000 and 19% to $652,140,000 from $550,212,000, respectively, during the same periods last year.

Mr. Wristen commented that the record results in the quarter put the Company on track for another record year in 2003. Mr. Wristen noted that the quarterly results were favorably impacted by a change in the Company’s annual effective tax rate to 38%, which added $.03 to EPS. For 2003, Mr. Wristen expects continued growth in revenue to approximately $880 million and EPS in the range of $1.55.

2004 Outlook
Mr. Wristen commented that in late October, the Company concluded its budgeting and planning process for 2004 and currently expects revenue to grow to approximately $950 million and EPS to be in the $1.50 - $1.55 area for 2004 before share repurchases.

Mr. Wristen noted that the current 2004 revenue and EPS estimates were disappointing, since the overall revenue growth is expected to be in the high single digits and EPS to be essentially flat compared to 2003. Mr. Wristen noted that there are several factors contributing to these expected results:

• Loss of corporate clients with higher margin PPO-only business
  
• Continued migration of corporate accounts to lower margin comprehensive services
  
• Fewer new corporate accounts effective in 2004 than previously anticipated
  
• Anticipated loss of federal employee members particularly in the Mail Handlers Health Benefit Plan, due to a significant increase in member contributions
  
• Anticipated loss of PPO revenue in the workers’ compensation area from recently-enacted legislation in California that is effective January 1, 2004
  
• Slower implementation of new clients for the Company’s workers’ compensation, insurance and state Medicaid services than previously expected

Additionally, Mr. Wristen stated that the anticipated 2004 EPS takes into account a lower effective tax rate of 38%, but does not factor in any accretion from the potential repurchase of the Company’s stock. Currently the Company has approximately 4.4 million shares available for repurchase under its current authorization.

The Company expects to build on its strengths which include:

• Long-term provider and payor contracts
  
• High touch and high service consumer-focused products
  
• Increasing momentum in state Medicaid programs through our comprehensive solutions that combine medical management, PBM and fiscal agent services
  
• Broadened offering in worker’s compensation through the Company’s recently announced acquisition of Health Net Employer Services, Inc.
  
• Comprehensive disease management solutions
  
• Scalable, integrated infrastructure

The Company expects to see more clients look to these types of strengths to effectively manage their health care costs.

Conference Call and Webcast
First Health Group Corp. will be hosting a conference call and webcast on Monday, November 3 at 8 a.m. Central Standard Time to discuss the Company’s third 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 on Form 10-K for the year ended December 31, 2002, and Quarterly Reports on Form 10-Q for the three months ended March 31, 2003 and June 30, 2003.

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 2004 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 and (iv) achieve operation and cost synergies anticipated as a result of the Health Net Employer Services acquisition. 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)