NEWPORT BEACH, Calif. – October 24, 2006 – The TriZetto Group, Inc. (Nasdaq: TZIX) today reported quarterly revenue of $86.4 million, which generated record Adjusted EBITDA of $17.9 million for its third quarter ended September 30, 2006. For the third quarter, the company reported a net loss per share of ($0.13), which included a one-time patent litigation settlement charge of $15 million, or ($0.29) per share, and a ($0.03) per share negative effect of expensing stock-based compensation under SFAS 123R, which was not included in last year's EPS. New contract bookings were a robust $75.9 million.

"The healthcare payer marketplace is beginning to actively address the impact of increased consumer involvement in both economic and qualitative healthcare decisions," said Jeff Margolis, TriZetto's chairman and chief executive officer. "TriZetto's breadth of technology solutions enables our customers to successfully respond to this shifting landscape. Demand for our solutions has driven year-to-date increases of 19% in revenue and 38% in Adjusted EBITDA over last year, positioning TriZetto to meet or exceed its guidance and growth targets for the full year."

"Third quarter results reflect solid operational performance with a good balance across our new and traditional products," added Kathleen Earley, TriZetto's president and chief operating officer. "TriZetto is exceptionally well positioned with the key solutions customers need, such as advanced care management, and real-time point-of-service patient liability determination."

Financial Summary (in millions, except per share amounts):

	Quarter Ended Sep. 30, 2006	Quarter Ended Sep. 30, 2005	Change
Revenue	$86.4	$73.1	18.2%
Bookings	$75.9	$75.1	1.1%
Total Backlog	$747.8	$663.1	12.8%
Net (loss) Income	($5.7)	$6.5	-187.7%
Diluted EPS	($0.13)	$0.14	-192.9%
Adjusted EBITDA*	$17.9	$13.3	34.6%
Cash Resources	$88.4	$57.8	52.9%
Cash Provided by Operations	$14.5	$3.6	302.8%
Capital Expenditures	$5.1	$4.7	8.5%

* Definition and reconciliation to GAAP is included in the attached financial schedules

Revenue

Third quarter 2006 revenue totaled $86.4 million, versus $73.1 million for the third quarter of 2005. The $13.3 million improvement included increases of $8.9 million in software license, $2.4 million in software maintenance, $1.1 million in consulting and other non-recurring, and $0.9 million in outsourced services revenue.

Non-recurring revenue represented 50.5% of total revenue in the third quarter of 2006, compared to 46.0% in the year-ago quarter, driven primarily by the larger increase in license revenue.

New Business Bookings

TriZetto signed new customer contracts in the third quarter of 2006 with a total value of $75.9 million, compared to $75.1 million in the year-ago quarter. Contract bookings comprise a mix of current and future period revenue and represent the expected minimum total revenue to be generated under each contract. New contract bookings will vary from one quarter to the next. New third-quarter contract bookings included $38.2 million for software license contracts; $21.1 million for outsourced services contracts (software hosting, business process outsourcing and other services); and $16.6 million for consulting, implementation, software customization and other services.

Backlog

The company's total revenue backlog was approximately $748 million at September 30, 2006, compared to $663 million at September 30, 2005 and $718 million at June 30, 2006. Twelve-month revenue backlog was approximately $192 million at September 30, 2006, compared to $194 million at September 30, 2005 and $186 million at June 30, 2006. The timing of contract closings and other factors can cause the company's backlog to vary from one quarter to the next.

Profitability

Third quarter 2006 net loss was ($5.7) million, or ($0.13) per share, compared to net income of $6.5 million, or $0.14 per share, for the third quarter of 2005. Third quarter 2006 EPS included a ($0.29) charge for the settlement of patent litigation with McKesson Corporation and ($0.03) negative impact from both the equity and cash expense effects of adopting Statement of Financial Accounting Standards No. 123R, which requires all companies to expense stock-based compensation beginning in 2006. For the first three quarters of 2006, EPS was $0.17, which included the ($0.29) McKesson settlement charge and ($0.09) year-to-date negative impact of SFAS 123R.

Third quarter income taxes reflect a benefit of $103,000, primarily representing the McKesson litigation settlement charge and the benefit of utilization of federal net operating loss carry-forwards. At December 31, 2006, the company expects the full-year effective tax rate to be approximately 12% and to have approximately $50 million of remaining federal NOL carry-forwards which will be available for use in 2007.

Adjusted EBITDA was a record $17.9 million for the third quarter of 2006, up 35% compared to $13.3 million in the year ago quarter. TriZetto reports earnings in accordance with Generally Accepted Accounting Principles (GAAP), and additionally reports certain non-GAAP measures, such as Adjusted EBITDA, believing that these provide additional information for investors to evaluate the company's financial performance. A definition of Adjusted EBITDA and a reconciliation to GAAP measures are included in the attached financial schedules.

Gross margin for the third quarter 2006 was 47.9%, compared to 45.6% a year ago. The 230 basis point improvement was driven primarily by a higher-margin mix of revenue in the quarter, improved pricing and operating efficiencies.

Research and development expenses represented 12.2% of revenue in the third quarter of 2006, 160 basis points higher than 10.6% of revenue for the year-ago quarter. This increase reflected development for the cost and quality of care solutions acquired in December 2005, as well as continuing investments in core administration and component software to add new capabilities and functionality.

Third quarter 2006 selling, general and administrative expense was $35.5 million, including the $15 million litigation settlement charge, compared to $18.6 million a year ago. Excluding the McKesson settlement, SG&A expense would have been $20.5 million, or 23.7% of revenue, a 170 basis point improvement over $18.6 million, or 25.4% of revenue, in the year-ago quarter.

Cash Resources and Cash Flow

Cash, restricted cash and short-term investments totaled $88.4 million at September 30, 2006, versus $57.8 million at September 30, 2005. Net cash provided by operating activities during the third quarter of 2006 was $14.5 million, compared to $3.6 million for the 2005 quarter. Capital expenditures in the third quarter of 2006 were $5.1 million, versus $4.7 million for the year-ago quarter. Significant cash outlays in the quarter included payments on the revolving line of credit and consulting bonus payouts, which totaled $5.2 million. Days sales outstanding for the third quarter of 2006 was 63 days, versus 58 in the year-ago quarter and 61 in the second quarter of 2006.

Guidance for 2006 Includes SFAS 123R

Last month, the company announced that it had signed a definitive agreement to acquire Quality Care Solutions Inc. (QCSI). At that time, the company provided an estimate of the impact of this acquisition on TriZetto's 2006 revenue and Adjusted EBTIDA, which was based on an anticipated closing early in the fourth quarter. This transaction remains subject to regulatory and other closing conditions and has not yet been consummated. Following the closing, the company will update its guidance.

Excluding the pending acquisition, TriZetto is increasing its full-year guidance. Revenue is expected to be between $330 and $343 million, representing a 13% to 17% increase over 2005. Diluted EPS is expected to be $0.28 to $0.33, which includes a ($0.29) per share charge for the previously announced settlement related to the McKesson patent litigation, and also includes an estimated ($0.10 to $0.14) per share negative impact, as compared to 2005, for the effect of adopting SFAS No. 123R. Adjusted EBITDA for 2006, which excludes stock-based compensation expense and the impact of the McKesson settlement, is expected to be between $64 and $68 million, an increase of 33% to 41% over 2005 Adjusted EBITDA. Capital expenditures in 2006 are expected to be between $18 and $22 million. Diluted share count for 2006 is expected to be approximately 46 million.

TriZetto is focused on growing Adjusted EBITDA at a long-term targeted rate approaching 30% per year, while maintaining capital spending at approximately the company's current rate. TriZetto projects that organic revenue growth of 8% to 12% will be required to achieve this target, depending on the mix of sales.

Conference Call

TriZetto will host a conference call at 5:00 p.m. Eastern Time / 2:00 p.m. Pacific Time today to discuss the quarter's results. Investors may access the webcast through TriZetto's web site at www.trizetto.com, first by clicking on the Investors button, and then on the Company Information drop-down menu item. The conference call will be archived and available through TriZetto's web site for 30 days following the call.

The webcast will also be distributed over CCBN's Investor Distribution Network to both institutional and individual investors. Individual investors can listen to the call through CCBN's individual investor center at www.fulldisclosure.com or by visiting any of the investor sites in CCBN's Individual Investor Network. Institutional investors can access the call via CCBN's password-protected event management site, StreetEvents (www.streetevents.com).

About TriZetto

Touching more than 35% of the U.S. insured population, TriZetto is distinctly focused on accelerating the ability of healthcare payers to lead the industry's transformation. The company provides premier information technology solutions that enhance its customers' revenue growth, drive their administrative efficiency, and improve the cost and quality of care for their members. Healthcare payers include national and regional health insurance plans, and benefits administrators that provide transaction services to self-insured employer groups. The company's broad array of payer-focused information technology offerings include enterprise and component software, hosting and business process outsourcing services, and consulting. Headquartered in Newport Beach, California, TriZetto can be reached at 949-719-2200 or at www.trizetto.com.

Important Notice Regarding Forward-Looking Statements

This press release contains 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 revenue, profits, cash flows and financial results, the market for TriZetto's services, future service offerings, industry trends, client and partner relationships, TriZetto's operational capabilities, future financial structure, uses of cash, the closing of and anticipated dilution or accretion of the QCSI acquisition, and other acquisitions or proposed transactions. Actual results may differ materially from those stated in any forward-looking statements based on a number of factors, including the ability of TriZetto to successfully integrate the businesses of TriZetto and its acquisitions or partners; the contributions of acquisitions to TriZetto's operating results; the effectiveness of TriZetto's implementation of its business plan, the market's acceptance of TriZetto's new and existing products and services, the timing of new bookings, 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, other risks associated with acquisitions, changes in demand for third party products or solutions which form the basis of TriZetto's service and product offerings, financial stability of TriZetto's customers, the ability of TriZetto to meet its contractual obligations to customers, including service level and disaster recovery commitments, changes in government laws and regulations; and risks associated with rapidly changing technology, as well as the other risks identified in TriZetto's SEC filings, including, but not limited to, its annual report on Form 10-K and quarterly reports on Form 10-Q, copies of which may be obtained by contacting TriZetto's Investor Relations department at 949-719-2225 or at TriZetto's web site at www.trizetto.com. All information in this release is as of October 24, 2006. TriZetto undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the company's expectations.

CONTACTS:

Investors:
Brad Samson
949-719-2220
brad.samson@trizetto.com

Media:
Audrey McDill
303-495-7197
audrey.mcdill@trizetto.com