First Health Announces New and Expanded Relationship with Kemper

Contact: James C. Smith, President and CEO
or
Joseph E. Whitters, CFO
First Health
630-241-7511

FOR IMMEDIATE RELEASE

DOWNERS GROVE, IL - December 19, 2000 - James C. Smith, President and Chief Executive Officer of First Health Group Corp. (NASDAQ: FHCC), announced today the Company has entered into a new contract and expanded relationship with Kemper National Services, one of the nation's largest workers' compensation insurance carriers. The Company will provide fee schedule services via First Health's 3.0 version, as well as PPO services. This agreement is a result of Kemper's substantial increase in business.

Mr. Smith noted that this expanded relationship with Kemper will add to our overall revenue in the Company's workers' compensation area in 2001 and beyond.

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.

Certain statements herein regarding anticipated financial results for fiscal 2001 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) 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, or (iv) control healthcare benefit expenses. All forward-looking statements herein are made as of the date hereof and the Company undertakes no obligation to update such statements.