Health Net Selects IBM for IT Infrastructure Services Agreement

ARMONK, NY - IBM (NYSE: IBM) today announced that on August 19, 2008 it entered into a five-year information technology (IT) infrastructure services agreement, in excess of $300 million, with Health Net, Inc. (NYSE: HNT). As part of the agreement, IBM will manage Health Net’s entire IT infrastructure for substantial cost savings and increased data center reliability.

“This is an important step in making Health Net more competitive and a key component of our operations strategy to increase our capabilities while reducing administrative costs and improving efficiency,” said James E. Woys, Health Net’s chief operating officer. “By partnering with IBM, Health Net will receive benefits including reduction of IT costs and operational risk while gaining access to IBM’s global resources and technologies.”

“We are confident that our extensive history in IT services and industry experience with healthcare payers will directly benefit Health Net’s business and customers,” said Chris Nicoletti, IBM vice president, health care and life sciences industry.

IBM will provide full IT infrastructure management services including: data center services, IT security management, help desk and desk side support. AT&T (NYSE: T), an IBM partner, will provide network, voice and data management services.

“AT&T is delighted to join forces with IBM to deliver networking services to Health Net,” said Ron Spears, Group President, AT&T Global Business Services.

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 health plans and government contracts subsidiaries provide health benefits to approximately 6.7 million individuals across the country through group, individual, Medicare, Medicaid and TRICARE and Veterans Affairs programs. Health Net’s behavioral health subsidiary, MHN, provides mental health benefits to approximately 6.9 million individuals in all 50 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.