News Release

 

PROLIANCE SURGEONS AND PACIFICARE/SECURE HORIZONS

ENTER INTO LONG-TERM AGREEMENT

SEATTLE, WA., June 24, 2002 - Proliance Surgeons and PacifiCare of Washington, a health plan subsidiary of PacifiCare Health Systems, Inc. (Nasdaq: PHSY), have signed a multi-year agreement aimed at improving overall health care quality and ensuring stability for patients throughout the Puget Sound region.

The agreement will take effect July 1, 2002, and extend through December 31, 2005. PacifiCare’s commercial and PPO products are covered under the new agreement as well as its Medicare+Choice product under Secure Horizons. Currently, PacifiCare serves more than 122,000 members in Washington.

“This agreement clearly demonstrates the positive value that two respected health organizations working together in good faith can bring to the communities we serve,” said David Fitzgerald, chief executive officer of Proliance Surgeons. “Our mutual commitment to a multi-year agreement will allow us to ensure continued stability for the patients served by PacifiCare and Secure Horizons and Proliance Surgeons throughout the Puget Sound area.”

Don Costa, president of PacifiCare of Washington, noted, “As we continue to grow our commercial and Medicare business and expand our product offerings with the introduction of our new PPO product, we recognize that our members benefit from our continued partnership with Proliance Surgeons to improve overall quality and customer service. Proliance Surgeons is a valuable partner to PacifiCare and Secure Horizons, and we look forward to the stability this long-term agreement brings to our continued growth in the Northwest.”

The agreement covers all of Proliance Surgeons’ physicians and offices. Proliance Surgeons, Inc., P.S. was formed through the merger of Surgical Associates of Washington with Orthopedic Consultants of Washington on January 1, 2002. Proliance is one of the largest surgical practices in the country, with 120 physicians throughout King, Snohomish, Pierce and Skagit Counties committed to providing the highest quality of orthopedic, general, thoracic, and vascular surgical services available. Many of Proliance physicians are women, offering the greatest female physician option to patients for comprehensive general surgery and orthopedic surgery. For more information about Proliance offices and physicians, please visit the Proliance web site at www.proliancesurgeons.com.

PacifiCare Health Systems is one of the nation’s largest health and consumer services companies with approximately $11 billion in annual revenues. Primary operations include health insurance products for employer groups and Medicare beneficiaries in eight

states and Guam, serving approximately 3.4 million members. Other specialty products and operations include pharmacy and medical management, behavioral health services, life and health insurance and dental and vision services. More information on PacifiCare Health Systems can be obtained at www.pacificare.com.