HORIZON/MERCY TO BECOME HORIZON NJ HEALTH
New name reaffirms commitment to excellence in serving New Jersey's publicly insured

(West Trenton, NJ, May 25, 2004) — Horizon/Mercy, New Jersey's largest managed health care organization serving the publicly insured Medicaid and NJ FamilyCare populations, announced that, effective June 1, 2004, its new name will be Horizon NJ Health. Company officials said the name change reflects its ongoing mission, not just its new ownership.

"This company's purpose is to promote health and serve the state's publicly insured, including children and their families," commented Karen L. Clark, President and Chief Operating Officer of Horizon NJ Health. "Our new name, Horizon NJ Health, represents our mission: to expand access and enhance the quality of health care for the publicly insured in New Jersey. Our mission has not changed, and those we serve, our insured and providers alike, understand that the name Horizon means a commitment to excellence. We are proud of our past, ready for the challenges of today, and excited about our future. Horizon NJ Health will maintain its unwavering commitment to improve our members' health and quality of life."

Horizon/Mercy was a partnership of Medigroup Services, Inc., a subsidiary of Horizon Healthcare of New Jersey, Inc., and Mercy Health Plan, a subsidiary of Mercy Health System in Southeastern Pennsylvania. In December 2002, Horizon Healthcare of New Jersey, Inc., acquired Mercy Health Plan's interest in the partnership, but operated under the Horizon/Mercy name.

"Horizon NJ Health has demonstrated its leadership in the marketplace and is ready to advance its strong presence in New Jersey. Horizon NJ Health is Making Healthcare Work^®' by providing quality service to our state's publicly insured population," said William J. Marino, President and Chief Executive Officer of Horizon Blue Cross Blue Shield of New Jersey.

"One of the strengths of Horizon NJ Health is its ability to change and develop innovative Health and Wellness Programs to better serve its members," added Christy Bell, Senior Vice President for Horizon Blue Cross Blue Shield of New Jersey. "The ability to adapt has earned Horizon NJ Health national recognition and helped make it the market leader in New Jersey. We look forward to a successful future."

Horizon NJ Health is New Jersey's largest managed health care organization serving the publicly insured, providing health services to 276,000 people in all 21 New Jersey counties. Headquartered in West Trenton, NJ, Horizon NJ Health is a subsidiary of Horizon Blue Cross Blue Shield of New Jersey (Horizon BCBSNJ).

Horizon Blue Cross Blue Shield of New Jersey, with headquarters in Newark, is New Jersey's largest health insurer, providing coverage to more than 2.9 million people. Horizon BCBSNJ's Web site is located at www.horizonblue.com. Horizon BCBSNJ is an independent licensee of the Blue Cross and Blue Shield Association.