NEWPORT BEACH, Calif. – October 22, 2002 – The TriZetto(R) Group, Inc. (Nasdaq:TZIX) reported financial results today for the third quarter ended September 30, 2002.

For the twelfth consecutive quarter, the company's financial performance was within or exceeded the guidance range provided to the investment community.

Financial and Operations Highlights

• Total revenue grew to $68.6 million in the third quarter of 2002, an increase of 20% over the $57.2 million reported in the third quarter of 2001. The increase was all from existing operations.
• The reported net loss for the third quarter of 2002 improved to $3.5 million or $0.08 per diluted share, compared with a net loss of $11.6 million or $0.27 per diluted share in the third quarter last year.
• Diluted pro forma earnings per share were $0.10 in the third quarter of 2002, flat with the same quarter last year. (Note: pro forma numbers exclude amortization of acquisition-related intangibles and deferred stock compensation, restructuring and related impairment charges and related taxes.)
• EBITDA (earnings before interest, taxes, depreciation and amortization) was $7.7 million in the third quarter, compared with EBITDA of $6.6 million in the third quarter of 2001.
• Days sales outstanding were 51 for the third quarter 2002.
• Total revenue backlog at September 30, 2002 was approximately $593 million. Twelve-month revenue backlog was approximately $185 million.
• 301 contracts (including amendments to existing contracts) were signed in the third quarter, with a total value of $22.8 million. 34 of these were business services contracts (software hosting and other outsourcing services) valued at $7.2 million, and 58 were software license contracts valued at $6.4 million. 209 contracts were for consulting services, valued at $9.2 million.

"Our pipeline of potential contracts is growing and we are in discussions with numerous prospects, but it is taking longer than planned to sign new contracts," Margolis continued. "This is particularly the case with contracts involving large health plans or multiple products and services, which can take a year or more to complete. When such contracts are signed, however, they tend to be sizeable, long-term, recurring revenue arrangements. Consequently, our total backlog can vary widely from one quarter to the next."

"We believe our sales execution will improve," Margolis said. "We recently restructured our sales force and created a separate team for the largest health plans in the country. The coordination between our software and services offerings continues to improve. In addition, given the size of the opportunity, we are significantly increasing the number of sales representatives focused on the payer market."

"We are bullish about our prospects," Margolis said. "More health plans are moving away from home-grown systems to packaged software, and demand for outsourced services is growing. With our leading software products such as Facets(R), HealthWeb(R), and QicLink(TM), our healthcare expertise, and full complement of outsourcing services, no company is in better position to capitalize on these favorable market trends."

Financial Review/Outlook

The financial guidance issued on January 8, 2002 remains unchanged. Go to www.trizetto.com "Investor Relations", "Financial Reports", to view 2002 guidance by quarter and for the year. Whether TriZetto reaches the low or the high end of the guidance range depends upon a number of factors, primarily the timing of contract signings. Given the information currently available, the company anticipates that it is more likely to hit the low-to-mid point of the guidance range for the full year, rather than the high end.

Revenue - Third quarter revenue totaled $68.6 million, up 20% from $57.2 million in the third quarter of 2001. All of the revenue increase was organic. Recurring revenue totaled $40.3 million in the third quarter of 2002 and non-recurring revenue was $28.3 million. Year-over-year, revenue increased primarily as a result of growth in implementation services, a large multi-year consulting contract and software maintenance.

Recurring revenue in the third quarter was 59% of total revenue, compared with 69% in the third quarter of 2001 and 61% in the second quarter of 2002. The decrease in the percentage of recurring revenue reflects the business failure of Maxicare, one of TriZetto's largest recurring revenue customers, and an increase in non-recurring revenue associated with several large customer implementations and a large multi-year consulting contract. Over time, TriZetto expects recurring revenue as a percent of total revenue to increase.

EBITDA - TriZetto posted EBITDA of $7.7 million in the third quarter of 2002, compared with $6.6 million in the third quarter of 2001 and EBITDA of $5.6 million in the second quarter of 2002. The year-over-year improvement in EBITDA reflects higher revenue and continued emphasis on pricing discipline and cost control throughout the company. The company expects EBITDA to continue to improve in the fourth quarter.

Net Loss/Per Share Data - TriZetto reported a net loss of $3.5 million in the third quarter of 2002, or a loss per diluted share of $0.08, compared with a loss of $11.6 million or $0.27 per diluted share in the third quarter of 2001. Most of the improvement is the result of eliminating goodwill amortization from the income statement as required by Financial Accounting Standard 142, which went into effect on January 1, 2002.

TriZetto's pro forma net income in the third quarter of 2002 was $4.5 million, or $0.10 per diluted share, compared to pro forma net income of $4.7 million, or $0.10 per diluted share in the third quarter of 2001.

Cash Resources - Cash, cash equivalents, restricted cash and short-term investments totaled $89.5 million at September 30, 2002. TriZetto used approximately $4.3 million in cash from operations during the third quarter of 2002.

Conference Call

TriZetto will host a conference call to discuss its third 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 (IT) products and services that can be delivered individually or combined to create a comprehensive solution.

The company provides:

• leading proprietary and third-party software, including e-business applications;
• outsourced services, such as software hosting, transaction processing and IT department operations; and
• strategic and implementation consulting.

TriZetto is focused on three healthcare markets: payers, benefit administrators and physician groups. Its more than 550 customers represent approximately 40 percent of the U.S. insured population. Headquartered in Newport Beach, Calif., TriZetto can be reached at (949) 719-2200 or www.trizetto.com.

Important Notice Regarding Forward-Looking Statements

CONTACTS:

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

Media Relations
Margie McCarthy
303-495-7225
margie.mccarthy@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