eHealthSystems To License eHealthInsurance Technology Solutions To Major Health Insurance Companies

SUNNYVALE, Calif. – January 8, 2002 – eHealthInsurance, the nation’s leading online source for individual, family and small business health insurance, announced today the formation of a new initiative and operating unit, eHealthSystems. eHealthSystems will market eHealthInsurance’s patent-pending technology as an electronic-commerce alternative to health insurance carriers and their broker networks nationwide. Sam Gibbs, senior vice president of eHealthInsurance, has been selected to lead eHealthSystems as its general manager.

“Over the past four years eHealthInsurance has grown from selling the industry’s first health insurance policy online into the recognized market leader. Our technologies support millions of individuals, families, and small businesses that shop for plans from over 100 of the nation’s leading health insurance companies online,” said Gary Lauer, CEO of eHealthInsurance. “It is a natural extension of our core business to license portions of our technology to health insurance companies that want to build online solutions featuring only their plans. This is the customer-proven technology and software we use every day to market and sell policies online.”

“Insurance companies are predicted to spend over $1 billion in the next two years to build out their online solutions,” said Sam Gibbs, eHealthSystems general manager. “We work with the nation’s largest insurance companies everyday. Many of them have asked to use our technology to help build their own online marketing systems. eHealthSystems now offers our proven technology and software which is uniquely positioned to meet these needs.”

The eHealthSystems operating unit will offer health insurance companies a hosted suite of modular Internet applications for their use with consumers and small businesses to evaluate health plans and complete, submit and purchase them online. The eHealthSystems solution set includes:

Products built on eHealthInsurance technology that has been used to sell more than one-hundred thousand policies online;

Complete online processing;

The industry’s only fully integrated Internet-CRM system;

Electronic data interchange to carrier legacy IT systems; and

Deployment of carrier e-commerce sites in 90 days.

The eHealthSystems solution vastly reduces the cost and risks associated with internally developed projects and custom application development.

About eHealthInsurance

Founded in 1997, eHealthInsurance (www.ehealthinsurance.com) markets individual, family and small business health insurance and was responsible for the nation’s first Internet-based sale of a health insurance policy. The company has become the No. 1 destination for purchasing health insurance online by offering the broadest selection of health insurance companies and plans nationwide at the best available prices, and delivering unparalleled customer service through qualified customer service professionals.

eHealthInsurance is funded by The Sprout Group (Credit Suisse First Boston), Kleiner Perkins Caufield & Byers, Goldman Sachs, Lightspeed Venture Partners (formerly Weiss, Peck & Greer Venture Partners), QuestMark Partners and Dell Computer. The management team and board include former or current executives of Aetna, Arthur Andersen, TRW Systems, Foundation Health, Healtheon, Hewlett Packard, IBM, MetLife, PacifiCare, Silicon Graphics, United Healthcare, Viewpoint Corporation (formerly MetaCreations) and other leading healthcare and technology companies.

eHealthInsurance.com is the registered trademark of eHealthInsurance Services, Inc.

For more information

Emily Fox

eHealthInsurance

(408) 542-4840

emily.fox@ehealthinsurance.com

Nick Davis

Imagio/JWT for eHealthInsurance

(206) 625-0252

nickd@imagio.com