eHealthInsurance Receives $32 Million from New and Returning Investors

QuestMark Partners, L.P. and The Sprout Group Lead Third-Round Investment with Kleiner Perkins Caufield & Byers, Goldman Sachs and Lightspeed Venture Partners

Sunnyvale, Calif. – January 10, 2001 — eHealthInsurance (www.ehealthinsurance.com), the leading online provider of health insurance for individuals, families and small businesses, today announced the closing of a $32 million third round of financing. Details of the funding will be presented today by eHealthInsurance CEO, Gary Lauer, at the 19th Annual Chase Hambrecht & Quist Healthcare Conference in San Francisco.

New investor QuestMark Partners, L.P. and The Sprout Group (Credit Suisse First Boston) led the investment round. Other participants in the round include previous investors Kleiner Perkins Caufield & Byers, Goldman Sachs and Lightspeed Venture Partners (formerly Weiss Peck & Greer), and a new strategic partner investor.

“This investment round is another milestone for us,” said Gary Lauer, CEO of eHealthInsurance. “Not only is it an affirmation of our business progress, but more importantly, it serves as an acknowledgement by these prestigious firms that we are the clear leader in the marketing and online sale of health insurance in the U.S. This round adds to our existing capital reserves and will help us to continue building a truly significant company.”

The capital raised will be used by eHealthInsurance to fund future stages of its growth plan. This includes additional market expansion and software development to enable more individuals, families and small businesses to use eHealthInsurance. The company now offers more than 4000 health plans from over 54 leading health insurance carriers.

“We invested in eHealthInsurance again because of the exceptionally experienced management team and the significant progress the company has made since the last round in executing the business plan, capitalizing on a staggering market opportunity and building on its leadership position,” said Kathleen D. LaPorte, General Partner of The Sprout Group (Credit Suisse First Boston).

“We are extremely enthusiastic about eHealthInsurance,” said Ben Schapiro, General Partner of QuestMark Partners. “After two years of considering eHealth investment opportunities, we decided to make an investment in eHealthInsurance because it is the best example we’ve seen of a company that is successfully combining traditional business fundamentals with the Internet to address a huge, growing and well-established market.”

About eHealthInsurance

Founded in 1997, eHealthInsurance (www.ehealthinsurance.com) markets individual, family and small group health insurance and was responsible for the nation’s first Internet-based sale of a health insurance policy. The company has become the #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 agents.

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

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

For More Information:

Emily Fox

eHealthInsurance

408/542-4840

[email protected]