New York State Court of Appeals Dismisses Consumers' Union Lawsuit

21 June 2005

WellChoice, Inc. (NYSE: WC), the parent company of Empire Blue Cross Blue Shield, announced today that the New York State Court of Appeals, New York's highest court, concluded that the plaintiffs' allegations in Consumers' Union of the U.S., et. al. vs. The State of New York and Empire HealthChoice, Inc., (d/b/a Empire Blue Cross Blue Shield) are legally insufficient to support any cause of action. Accordingly the Court granted the defendants' motion to dismiss the amended complaint alleging that the Conversion Legislation violated the State Constitution on the ground that it is a local law granting an exclusive privilege, immunity and/or franchise. The Court also affirmed the Appellate Division's order affirming the dismissal of all other causes of action.

"We are pleased with the Court's decision today," said Michael A. Stocker, MD, president and CEO of WellChoice. "This resolves all legal issues pertaining to Empire's conversion, including the appropriate use of the proceeds."

For a full discussion of the Consumers' Union litigation, please refer to WellChoice's Annual Report on Form 10-K for the year ended December 31, 2004, Quarterly Report on Form 10-Q for the three months ended March 31, 2005 and the Form 8-K to be filed with the Securities and Exchange Commission.

About WellChoice

WellChoice, Inc. is the parent company of the largest health insurer in the State of New York based on PPO and HMO membership. WellChoice, through its Empire Blue Cross Blue Shield subsidiaries, has the exclusive right to use the Blue Cross and Blue Shield names and marks in 10 downstate New York counties and one or both of these names and marks in selected counties in upstate New York. WellChoice offers a broad portfolio of products, including managed care and traditional indemnity products, and has a broad customer base including large group, middle-market and small group, individual, and national accounts.

Source: Business Wire

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