NEWPORT BEACH, Calif. – February 5, 2002 – The TriZetto® Group, Inc. (Nasdaq: TZIX - news) reported financial results today for the fourth quarter and year ended December 31, 2001. The company's performance in the fourth quarter exceeded analysts' estimates for pro forma earnings per share.

Fourth Quarter Highlights

• Total revenue grew to $61.6 million in the fourth quarter of 2001, an increase of 80% over the $34.2 million reported in the fourth quarter of 2000. The increase was primarily driven by organic growth of 49%.
• Fully diluted pro forma earnings per share were $0.16 in the fourth quarter of 2001, compared with a fully diluted pro forma loss per share of $0.25 in the fourth quarter of 2000. (Pro forma numbers exclude amortization of acquisition-related intangibles and deferred stock compensation, write-offs of in-process research and development costs, restructuring and related impairment charges and related taxes.)
• Excluding restructuring and related impairment charges of $12.1 million, the reported net loss (before benefit from income taxes) in the fourth quarter of 2001 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 (earnings before interest, taxes, depreciation, amortization, restructuring and related impairment charges) 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. Total recurring revenue backlog at December 31, 2001 was approximately $590.0 million.
• The 12-month recurring and software license revenue backlog at December 31, 2001 was approximately $174.6 million. The 12-month recurring revenue backlog at December 31, 2001 was approximately $148.7 million.
• A total of 172 contracts were signed in the fourth quarter, with a contract value of $138.4 million. 88 of these were software services contracts (Applications Services Provider (ASP), also known as "hosting", and business process outsourcing) and 84 were software license contracts.
• As of December 31, 2001, days billings outstanding were 52, and days sales outstanding were 62.

In the fourth quarter, TriZetto signed software license contracts with a total value of $22.6 million, including new or amended contracts for TriZetto's Facets®, Facts®, QicLink(TM) and HealthWeb®. Of note, the company signed a Facets license contract with 4.8 million-member Blue Cross Blue Shield of Michigan. This is one of TriZetto's largest license sales to date, and the thirteenth Facets agreement with a Blue Cross Blue Shield health plan.

TriZetto signed software services (recurring revenue) contracts in the quarter with a total value of $115.8 million. The largest of these was a $32 million agreement with M*Plan, a health plan with 178,000 members based in Indianapolis, Indiana. Under the six-year contract, TriZetto will host and manage Facets software and assume responsibility for processing medical claims, enrollment and other transactions. In addition, TriZetto signed a $14 million five-year agreement to host Facets for Capital Blue Cross, a 1.4 million-member health plan based in Harrisburg, Pennsylvania. "M*Plan and Capital Blue Cross are the first new customers to select the hosted version of Facets," Mr. Margolis said. "Given the functionality of Facets and the economic advantages associated with hosting, we anticipate that other health plans will follow suit."

"2002 promises to be another year of substantial progress for TriZetto," Mr. Margolis said. "We anticipate reporting free cash flow and positive GAAP earnings per share in the fourth quarter of the year. We believe the key elements of our business strategy - an experienced management team focused 100 percent on healthcare, a comprehensive portfolio of products and services, and our market-leading position - will drive continued growth. Further, we believe the healthcare industry will continue to demand information systems and services - like those offered by TriZetto - that can reduce costs, improve customer service and help achieve compliance with government regulations."

Financial Review/Outlook

Revenue - Fourth quarter revenue totaled $61.6 million, up from $34.2 million in the fourth quarter of 2000. Recurring revenue totaled $39.6 million in the fourth quarter of 2001 and non-recurring revenue was $22.0 million. Comparing the fourth quarter of 2001 with same period in 2000, revenue increased due to organic growth of 49% and the acquisitions of RIMS and Infotrust. Recurring revenue in the fourth quarter was 64% of total revenue, compared with 68% in the fourth quarter of 2000 and 69% in the third quarter of 2001.

The year-over-year change in fourth quarter revenue mix is primarily the result of higher non-recurring software-related revenue. Given the anticipated growth rates of its business lines, TriZetto expects recurring revenue as a percent of total revenue to increase over time.

In the first quarter of 2002, TriZetto anticipates that total revenue will be approximately $56 - $59 million. This sequential decrease in revenue reflects the seasonal nature of the software license business (i.e. higher revenue in the second half of the year). In 2002, total revenue is expected to range from $260 - $275 million.

EBITDA - TriZetto reported positive EBITDA of $9.2 million in the fourth quarter of 2001, compared with an EBITDA loss of $6.9 million in the fourth quarter of 2000 and positive EBITDA of $6.6 million in the third quarter of 2001. The EBITDA improvement was the result of higher revenue and a minimal increase in expenses.

In the first quarter of 2002, TriZetto expects EBITDA to range between $3.1 million and $4.2 million. This sequential decrease in EBITDA reflects the seasonal nature of TriZetto's higher margin software-related business (i.e. higher revenue and EBITDA in the second half of the year). In 2002, TriZetto expects to generate $26 - $31 million in EBITDA.

Net Loss/Per Share Data - Excluding restructuring and related impairment charges of $12.1 million, TriZetto reported a net loss before benefit from income taxes of $11.0 million in the fourth quarter of 2001, or a loss per share of $0.25, compared with a net loss of $23.9 million or $0.71 per share in the fourth quarter of 2000. Including the restructuring and related impairment charges, the reported net loss was $16.6 million in the fourth quarter of 2001 or a loss per share of $0.38. The restructuring and related impairment charges related to asset write-offs (including goodwill) associated with discontinued operations, severance expenses associated with reductions in the workforce, and office consolidations.

TriZetto's pro forma net income in the fourth quarter of 2001 was $7.1 million, or $0.16 per fully diluted share, compared to a pro forma net loss of $8.5 million or $0.25 per fully diluted share in the fourth quarter of 2000.

In the first quarter of 2002, TriZetto expects pro forma net income to range from $200,000 - $1.3 million, and fully diluted pro forma earnings per share to range from $0.00 - $0.03. This sequential decrease in pro forma net income and EPS reflects the seasonality of TriZetto's higher margin software- related business. The company estimates that weighted average fully diluted shares outstanding in the first quarter of 2002 will be approximately 46.7 million.

In 2002, TriZetto anticipates pro forma net income to range from approximately $12.6 - $17.7 million and fully diluted pro forma earnings per share to range from $0.26 to $0.37.

Cash Resources - Cash, cash equivalents, restricted cash and short-term investments totaled $84.6 million at December 31, 2001. TriZetto generated cash from operations of approximately $10.5 million during the fourth quarter of 2001. TriZetto believes that its cash resources are sufficient to operate the business for at least the next 12 months.

Conference Call

TriZetto will be hosting a conference call to discuss its fourth quarter results today at 7:30 a.m. Pacific Time. To listen to the conference call via the Internet, go to TriZetto's Web site at www.trizetto.com, click on "investor relations", and follow the instructions provided.

About TriZetto

The TriZetto® Group, Inc., offers a broad portfolio of healthcare information technology products and services that can be delivered individually or combined to create a comprehensive solution. The company provides proprietary and third party software on a licensed or hosted basis, e-business applications, consulting services and business services, such as claims, billing and enrollment processing. Focused exclusively on healthcare, TriZetto serves more than 500 payers, providers and benefits administrators. Its payer customers serve more than 90 million health plan members, or approximately 40 percent of the insured population of the United States. Headquartered in Newport Beach, Calif., TriZetto can be reached at (800) 569-1222, www.trizetto.com.

CONTACTS:

TriZetto Investor Relations
Anna Marie Dunlap
949-719-2236
am.dunlap@trizetto.com

TriZetto Media Relations
David Scott
303-495-7197
david.scott@trizetto.com

Information

For more detailed information, please call 1-800-569-1222 or click on the link below. Request more information     Contact a sales rep