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Mickey Herbert Named President & CEO of ConnectiCare to Replace Gus Gamache

Farmington, CT, August 2, 2005 - Anthony L. Watson, Chairman & CEO of HIP Health Plans, today announced the appointment of Mickey Herbert as President & CEO of ConnectiCare, which HIP acquired last March. Mr. Herbert will replace Marcel ("Gus") Gamache, who had announced earlier this year that he will be leaving in September to pursue other interests.

"As President and CEO of ConnectiCare, Gus Gamache has turned in an outstanding job of leadership," Mr. Watson said. "ConnectiCare is the third largest health plan in Connecticut and was ranked in the top 10 plans nationally in medical quality in 2004 by the National Committee for Quality Assurance (NCQA). After 11 years at the helm of ConnectiCare, Gus has more than earned the right to pursue his personal interests and we wish him well."

Under Mr. Gamache's leadership, the Farmington-based managed care company has more than doubled in size to nearly 245,000 members and experienced a significant turnaround in its financial condition. He led the organization through a conversion from a not-for-profit organization to a privately-held investor-owned company in 2001. ConnectiCare's conversion and recapitalization resulted in the creation and funding of a $130-million Connecticut Health Foundation, the largest foundation of its kind in New England.

"In Mickey Herbert, we have obtained the services of a nationally recognized expert on health plans. As founder and CEO for twenty-two years of Physicians Health Services, Inc. (PHS), Mr. Herbert brings a wealth of knowledge and demonstrated leadership to ConnectiCare and to HIP Health Plans," Mr. Watson stated. PHS, which was sold to HealthNet in January 1998, had 34,000 participating physicians serving over 550,000 members at the time of its sale. Mr. Watson added: "It is a rare opportunity for us to find an individual like Mickey Herbert to follow Gus Gamache. Both have demonstrated an exceptional commitment to Connecticut, to building a company culture of responsiveness to members through team-oriented, value-focused employees, and to the pursuit of "Best in Class" performance."

Mr. Herbert, currently President and CEO and a majority owner of the Bridgeport Bluefish Baseball Club, is active in community work and serves on the boards of numerous area organizations. He is a past chair of the American Association of Health Plans (AAHP), since renamed America's Health Insurance Plans (AHIP), and a past chair of the former American Managed Care and Review Association. He was a charter president of the Association of Connecticut HMOs and a charter Chair of the Academy for Healthcare Management. He served for seven years on the board of directors of UroCor, Inc., a urological disease management company. Currently he serves on the board of directors of Labyrinth Healthcare Group, a national health advocacy organization.