First Health Authorizes Additional Stock Repurchases

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

FOR IMMEDIATE RELEASE

DOWNERS GROVE, IL,  December 03, 2002 – First Health Group Corp., (NASDAQ: FHCC) announced today that its Board of Directors has approved the purchase by the Company of up to an additional 10,000,000 shares or approximately 10 percent of its outstanding common stock. Since September 1996, the Company has repurchased approximately 56.7 million shares and has approximately 1.2 million shares remaining under its prior authorization. To date, the Company has purchased approximately 2.7 million shares in the fourth quarter of 2002. Purchases may be made from time to time in the open market or in private transactions.

"Our recent purchases and this additional repurchase authorization reflect the Board's belief that our stock is significantly undervalued," said Edward L. Wristen, President and CEO, First Health. "In view of the Company's strong financial position, the repurchase of stock represents a very attractive investment opportunity for the Company."

First Health will utilize working capital or capacity under its existing $400 million credit facility to purchase shares. Common stock, which is repurchased by First Health, may be issued pursuant to the Company's stock option and employee stock purchase plans, or for other corporate purposes.

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.