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Trizetto Achieves Q4 Earnings Growth

The TriZetto Group, Inc. , the Newport Beach, Calif.-based provider of Web-delivered healthcare solution, today reported financial results for the fourth quarter and year ended December 31, 2001.

Total revenue grew to $61.6 million in the fourth quarter of 2001, an increase of 80 percent over the $34.2 million reported in the fourth quarter of 2000.

TriZetto says the increase was primarily driven by organic growth of 49 percent. Fourth quarter 2001 highlights follow:

Fully diluted pro forma earnings per share were $0.16, compared with a fully diluted pro forma loss per share of $0.25 in the fourth quarter of 2000.

Excluding restructuring and related impairment charges of $12.1 million, the reported net loss was $11.0 million or $0.25 per share compared with a net loss of $23.9 million or $0.71 per share in the fourth quarter of 2000.

TriZetto achieved positive fourth quarter EBITDA of $9.2 million, compared with negative EBITDA of $6.9 million in the fourth quarter of 2000.

Total recurring and software license revenue backlog at December 31, 2001 was approximately $623.4 million, while total recurring revenue backlog was approximately $590.0 million.

The 12-month recurring and software license revenue backlog at December 31, 2001 was approximately $174.6 million and recurring revenue backlog was approximately $148.7 million.

TriZetto signed a total of 172 contracts in the fourth quarter, achieveing a value of $138.4 million. Of these contracts, 88 were for software services and 84 were software licenses.

In 2001, our company grew the top line by 145 percent while strengthening the balance sheet and making excellent progress toward profitability," said Jeffrey H. Margolis, TriZetto's Chief Executive Officer.

Year over year, EBITDA improved by $36 million, from a loss of $21.4 million to a positive $15.0 million. Pro forma earnings per share improved by $1.26, from a loss of $1.10 per share in 2000 to a positive $0.16 in 2001.

The firm's cash position improved from $28.4 million at the end of 2000 to $84.6 million at the end of 2001, the result of a successful secondary offering completed in June 2001 and cash from operations.

"In addition, TriZetto completed the integration of two strategically important acquisitions, Erisco and RIMS, and created a national sales force capable of selling the entire spectrum of TriZetto products and services.

We are entering 2002 in a strong competitive position, with the leading administrative software for payers and benefits administrators, the leading Internet platform for payers and the largest ASP in healthcare," says Margolis.

He continues: "We believe the healthcare industry will continue to demand information systems and services that can reduce costs, improve customer service and help achieve compliance with government regulations."

In the first quarter of 2002, TriZetto anticipates that total revenue will be approximately $56 - $59 million and total revenue is expected to range from $260 - $275 million.