Blue Shield Of California Launches Work On System-Wide Technology Upgrade With TriZetto's Facets Software

January 28, 2008

SAN FRANCISCO AND NEWPORT BEACH - Blue Shield of California has contracted with the TriZetto Group Inc. (NASDAQ: TZIX) to acquire software for a major system-wide technology upgrade expected to launch in 2009. The multi-year project is part of Blue Shield' s strategy to make it easier to do business with the not-for-profit plan by improving data systems associated with claims processing, membership, customer service, sales channels, and new product development. TriZetto is providing a number of software systems, including Facets ®, Facets ™ Workflow, Facets ™ eXtended Integration, NetworX Modeler ™, NetworX Pricer ™, web solutions and ITS Interface software; on-going application management services; and implementation consulting services to Blue Shield.

"Overhauling our technology will allow us to better serve our consumers, business partners, insurance brokers and healthcare providers by enabling more efficient processes and tools," said Bob Novelli, executive vice president of customer services & corporate marketing at Blue Shield of California. "We are excited to have a trusted implementation partner in TriZetto to achieve that goal."

Elinor MacKinnon, Blue Shield' s senior vice president and chief information officer, added, "This is one of the largest and most important technology projects Blue Shield has ever undertaken. Upgrading our core technology and business systems is central to delivering on our commitment to making health coverage easier for Californians. With the selection of this software package, we are off to a strong start."

Blue Shield of California chose TriZetto for its affiliations with many Blues plans and for being the industry-wide standard. Blue Shield of California represents the 79 th payer and 16 th Blue Cross Blue Shield Association member plan to standardize on Facets. The contract was signed in January 2008 and is expected to comprise approximately $100 million of new contract bookings for TriZetto. A small portion of the revenue under this agreement will be recognized in the first quarter of 2008 and the remainder is expected to be recognized in future periods.

“Our success with Blue Shield of California underscores the unique breadth, scalability and integration that TriZetto solutions offer to help payers improve productivity, enhance growth and accelerate new offerings and value for their members,” said Tony Bellomo, TriZetto’ s executive vice president of product management. “I am proud of the strong partnership that was built between Blue Shield of California and TriZetto in this first part of the process. Leveraging that teamwork with our best practice implementation methodology, tools and templates will help assure a successful technology upgrade for Blue Shield of California.”

About Blue Shield of California
Blue Shield of California, an independent member of the Blue Shield Association, is a not-for-profit health plan dedicated to providing Californians with access to high quality care at a reasonable price. Founded in 1939, it now has 3.2 million members, 4,500 employees, one of the largest provider networks and more than 20 office locations, providing a wide range of commercial and government products throughout the state. The company has contributed $100 million over the past three years to the Blue Shield of California Foundation to fund nonprofit organizations that improve access to quality health care in California. Contact your local agent or broker for more information about Blue Shield products and services, or visit the Blue Shield web site at www.blueshieldca.com. Blue Shield and the Shield Symbols are registered service marks of the Blue Cross and Blue Shield Association, an association of independent Blue Cross and Blue Shield Plans.