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TriZetto and Maxicare Reach Initial Settlement
NEWPORT BEACH, Calif. – March 14, 2002 – The TriZetto(R) Group, Inc. (Nasdaq: TZIX) announced today that it has entered into a $3.9 million settlement agreement with Maxicare, a customer that filed for Chapter 11 bankruptcy protection in May 2001. Under the settlement agreement, TriZetto will receive $1 million in cash for services provided in 2001 following Maxicare's bankruptcy filing. In addition, TriZetto will be paid $2.9 million to provide a reduced level of data center operations and software support in 2002. The agreement provides for the orderly transfer of responsibility for such services from TriZetto to Maxicare by December 31, 2002.
Of the $3.9 million total settlement, $1.2 million was received on March 13, 2002 and the remainder will be paid in monthly installments beginning April 1, 2002 and continuing through the end of the year. TriZetto will have an administrative claim for such payments, which will be given priority over the claims of general unsecured creditors.
The settlement agreement does not affect TriZetto's right to seek recovery of approximately $1 million in unpaid receivables related to services performed prior to Maxicare's bankruptcy filing or damages related to early termination of the agreement. TriZetto believes that it is adequately reserved to cover receivables for services provided in 2001 that will not be recovered under the settlement agreement.
About TriZetto
The TriZetto(R) Group, Inc., offers a broad portfolio of healthcare IT 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.
This press release may contain forward-looking statements that involve risks and uncertainties. The forward-looking statements are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may include statements about future net revenues, profits, and financial results, the market for TriZetto's services, future service offerings, client and partner relationships, and TriZetto's operational capabilities. Actual results may differ materially from those stated in any forward-looking statements based on a number of factors, including the effectiveness of TriZetto's implementation of its business plan, the market's acceptance of TriZetto's services, risks associated with management of growth, reliance on third parties to supply key components of TriZetto's services, attraction and retention of employees, variability of quarterly operating results, competitive factors, risks associated with acquisitions, changes in demand for third party products or solutions, which form the basis of TriZetto's service offerings, and risks associated with rapidly changing technology, as well as the other risks identified in TriZetto's Form 10-K and other SEC filings.
CONTACT:
The TriZetto Group, Inc.
Anna Marie Dunlap
949-719-2236
am.dunlap@trizetto.com
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For more detailed information, please call 1-800-569-1222 or click on the link below.
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