FHCC Reports Record Results: 35% EPS Growth for Quarter Raises Guidance for 2003

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, February 18, 2003 - Edward L. Wristen, President and Chief Executive Officer of First Health Group Corp. (NASDAQ: FHCC), announced today the results of operations for the fourth quarter and year ended December 31, 2002.

Highlights for the fourth quarter include:

• Record revenue of $209.8 million, up 27% from 4Q 2001
• Record net income of $35.7 million, up 33% from 4Q 2001
• Record EPS of $.35, up 35% from 4Q 2001
• Record Cash Flow From Operations of $79.8 million, up 100% from 4Q 2001
• Claims administration revenue grew 84% from 4Q 2001
• PPO revenue grew 10% from 4Q 2001

Highlights for the full year include:

• Record revenue of $760.0 million, up 28% from 2001
• Record net income of $132.9 million, up 29% from 2001
• Record EPS of $1.28, up 28% from 2001
• Record Cash Flow from Operations of $277.5 million, up 83% from 2001
• Claims administration revenue grew 41% from 2001
• PPO revenue grew 26% from 2001

In a quarter that produced record results, diluted earnings per share (EPS) and net income for the three months and year ended December 31, 2002, increased 35% to $.35 or $35,697,000 and 28% to $1.28 or $132,938,000 respectively, compared with $.26 or $26,827,000 and $1.00 or $102,920,000 respectively, during the same periods last year. Revenues for the three months and year ended December 31, 2002, increased 27% to $209,754,000 from $164,968,000 and 28% to $759,966,000 from $593,108,000 respectively, during the same periods last year.

Mr. Wristen commented that the strong fourth quarter results capped off a record-breaking year. Revenue grew 28% for the year, led by a 41% increase to $237.5 million in claims administration revenue, primarily due to the addition of Mail Handlers Benefit Plan administration business effective July 1, 2002. Also for the year, PPO revenue grew over 26% to $437.8 million. Mr. Wristen also noted that this led to record net income of $132.9 million, a 29% increase over the prior year.

Additionally, Mr. Wristen commented that he expects continued strong growth in 2003 with revenue of approximately $870 million and EPS in the range of $1.50 to $1.55, which represents an increase in both the revenue and EPS from prior guidance.

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)