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BlueCross BlueShield of Tennessee Expands and Extends Disease Management Program with LifeMasters

Fully Insured and FEP Populations Added in Five Year Contract Extension

Irvine, Calif. (May 19, 2004) - LifeMasters® Supported SelfCare^SM, Inc., one of the nation's largest disease management companies, today announced the expansion of its contract with BlueCross BlueShield of Tennessee (BCBST). The agreement extends LifeMasters' relationship with BCBST through 2009, while providing access to disease management services for BCBST's entire population of fully insured lives. The contract also expands LifeMasters' services to federal employees in Tennessee who are enrolled in the Federal Employee Program (FEP) which is administered by the BCBS Association in coordination with the Federal Government's Office of Personnel Management.

LifeMasters began working with BlueCross BlueShield of Tennessee in 2001, under the first disease management contract in the industry to cover the five most prevalent and expensive chronic medical conditions: congestive heart failure (CHF), coronary artery disease (CAD), chronic obstructive pulmonary disease (COPD), diabetes, and asthma. The program, which was first implemented as a pilot for BCBST employees and their dependents, was later expanded to include a large Point-of-Service (POS) plan, as well as BCBST's Administrative Services Only (ASO) accounts.

Program participants develop one-on-one relationships with specially trained nurses who provide support, information, and personalized coaching designed to educate participants and provide them with the tools that will help them achieve their optimal level of health. In addition, LifeMasters' sophisticated data analysis system regularly monitors participants and gaps in their recommended care and notifies a participant's personal physician if a clinically validated change occurs.

"We have worked closely with BlueCross BlueShield of Tennessee to design and implement a disease management program that best meets their needs and the needs of their customers," said Christobel Selecky, LifeMasters' CEO. "We're grateful that our efforts have been successful and that BCBST has elected to expand the LifeMasters program to these additional populations."

"Our decision to expand LifeMasters' disease management programs is the result of our successful working relationship with them over the past 3 years," said Dr. Daniel Barnett, Senior Medical Director, Medical Risk Management for BlueCross BlueShield of Tennessee. "We are very pleased to be working collaboratively with LifeMasters to help improve our members' quality of life. An additional benefit is that healthier members translate to healthcare cost savings by reducing the need for emergency room visits and hospitalizations and avoiding costly procedures."

Enrollment for BCBST's fully insured customers began in May 2004.

About BlueCross BlueShield of Tennessee
BlueCross BlueShield of Tennessee is the state's oldest and largest not-for-profit health plan, serving more than 2.6 million Tennesseans. Founded in 1945, the Chattanooga-based company is focused on financing affordable health care coverage and providing peace of mind for all Tennesseans. BlueCross serves its members by delivering quality health care products, services and information. For more information on BlueCross BlueShield of Tennessee, visit the company's Web site at www.bcbst.com.

For More Information Contact:

Denise Apcar LifeMasters, Inc (650) 873-6000 pr@lifemasters.com