Government Employees Hospital Association, Inc. (GEHA) Renews Pharmacy Benefit Contract with Medco

FRANKLIN LAKES, N.J., Feb. 14 /PRNewswire-FirstCall/ -- Medco Health Solutions, Inc. today announced it has renewed an agreement with Government Employees Hospital Association, Inc. (GEHA), the nation's third- largest national health insurance plan serving federal civilian employees, retirees and their families. Under the four-year arrangement, which becomes effective Jan. 1, 2007, Medco will continue to administer a comprehensive pharmacy benefit program for the plan's 425,000 covered beneficiaries.

Medco was selected to administer the pharmacy benefit following a year-long competitive bidding process. Medco will continue to provide a fully integrated prescription drug program including traditional and specialty medications across both mail-order and retail pharmacy channels. Annual prescription drug claim costs for the members served by GEHA are approximately $600 million.

"Medco and GEHA continue to build upon and strengthen our 13-year collaborative history. We appreciate the opportunity to extend our best-in- class pharmacy services and clinical expertise to GEHA's members through the end of 2010," said David B. Snow Jr., Medco president, chairman and CEO.

The award is subject to final contract execution. About Government Employees Hospital Association

Founded in the 1930's, GEHA was one of the first insurance carriers to provide coverage to federal employees under the Federal Employees Health Benefits Act. The company offers fee-for-service health plans with a Preferred Provider Organization (PPO) and among the first in the federal market to launch a new high-deductible health plan that can be paired with a health savings account (HSA).

About Medco

Medco Health Solutions, Inc. is a leader in managing prescription drug benefit programs that are designed to drive down the cost of pharmacy healthcare for private and public employers, health plans, labor unions and government agencies of all sizes. With its technologically advanced mail-order pharmacies and its award-winning Internet pharmacy, Medco has been recognized for setting new industry benchmarks for pharmacy dispensing quality. Medco serves the needs of patients with complex conditions requiring sophisticated treatment through its specialty pharmacy operation, which became the nation's largest with the 2005 acquisition of Accredo Health. Medco, the highest-ranked prescription drug benefit manager on Fortune magazine's list of "America's Most Admired Companies," is a Fortune 50 company with 2004 revenues of $35 billion. On the Net: http://www.medco.com/.

This press release contains "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties that may cause results to differ materially from those set forth in the statements. No forward-looking statement can be guaranteed, and actual results may differ materially from those projected. We undertake no obligation to publicly update any forward- looking statement, whether as a result of new information, future events, or otherwise. Forward-looking statements in this presentation should be evaluated together with the risks and uncertainties that affect our business, particularly those mentioned in the Risk Factors section of the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission.

First Call Analyst: FCMN Contact: jennifer_leone@medco.com