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Health Net's Behavioral Healthcare Business Unit Awarded Department of Defense Contract

Posted on: Monday, 12 February 2007, 15:01 CST

Health Net, Inc. (NYSE:HNT) today announced that MHN, its behavioral health care business unit, has been awarded a five year contract to develop, administer and monitor the non-medical counseling program for Service members and their families known as Military Family Counseling Services (MFCS). The contract is valued at approximately $50 million a year. The MFCS program is the successor to the current counseling pilot program Military and Family Life Counseling that MHN has successfully managed since 2004.

"We're proud to have the opportunity to deliver this valuable program to meet the needs of our military and Service members and their families. By awarding Health Net/MHN this contract, the Department of Defense acknowledges the value we add by providing the high quality counseling programs our Service members and their families deserve," said Steve Sell, president of MHN. "This contract adds to an already successful partnership that Health Net and its business units have had with the federal government for the past 22 years."

The MFCS program is designed to deliver short-term situational problem-solving counseling, primarily with regard to the stress factors inherent in the military lifestyle. MHN is recruiting and training new counselors to augment those currently credentialed and working in the pilot program. Services under the new contract will begin within the next three months.

About Health Net

Health Net, Inc. is among the nation's largest publicly traded managed health care companies. Its mission is to help people be healthy, secure and comfortable. The company's HMO, POS, insured PPO and government contracts subsidiaries provide health benefits to approximately 6.6 million individuals in 27 states and the District of Columbia through group, individual, Medicare, Medicaid and TRICARE and Veterans Affairs programs. Health Net's behavioral health subsidiary, MHN, provides behavioral health, substance abuse and employee assistance programs (EAPs) to approximately 7.3 million individuals in various states. The company's subsidiaries also offer managed health care products related to prescription drugs, and offer managed health care product coordination for multi-region employers and administrative services for medical groups and self-funded benefits programs.

For more information on Health Net, Inc., please visit the company's Web site at www.healthnet.com.

Cautionary Statements

This release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended, that involve a number of risks and uncertainties. All statements, other than statements of historical information provided herein, may be deemed to be forward-looking statements. These statements are based on management's analysis, judgment, belief and expectation only as of the date hereof, and are subject to uncertainty and changes in circumstances. Without limiting the foregoing, the words "believes,""anticipates,""plans,""expects,""may,""should,""could,""estimate,""intend" and other similar expressions are intended to identify forward-looking statements. Actual results could differ materially due to, among other things, rising health care costs, negative prior period claims reserve developments, trends in medical care ratios, issues relating to provider contracts, litigation costs, operational issues, health care reform and general business conditions. Additional factors that could cause actual results to differ materially from those reflected in the forward-looking statements include, but are not limited to, the risks discussed in the "Risk Factors" section included within the company's most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q filed with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements. The company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date of this release.

Source: Business Wire

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