NEWPORT BEACH, Calif. – February 5, 2007 – The TriZetto Group, Inc. (Nasdaq: TZIX) today reported diluted earnings per share (EPS) for the full-year 2006 of $0.33, on revenue of $347.9 million. EPS performance at the high end of the company's guidance range included a one-time ($0.29) per share patent litigation settlement charge in the third quarter, and a ($0.13) full-year per share negative effect of expensing stock-based compensation under SFAS 123R, which was not included in last year's EPS.

"I am very proud of the exceptional teamwork across TriZetto in 2006 that dramatically expanded our ability to deliver innovative, integrated solutions for our customers," said Jeff Margolis, TriZetto's chairman and chief executive officer. "These solutions include enhanced consumer-retail healthcare capabilities, integrated cost and quality of care management and the introduction of true real-time point-of-service adjudication. Looking forward, TriZetto's substantially greater financial strength and industry footprint provides many exciting opportunities for further innovation in 2007."

Added Kathleen Earley, TriZetto's president and chief operating officer, "We had big goals for 2006 and our team executed well across the company to deliver an outstanding year of strong bookings and revenue, a healthy mix of all of our products and services, and record backlog."

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

	Year Ended Dec. 31, 2006	Year Ended Dec. 31, 2005	Change
Revenue	$347.9	$292.2	19.1%
Bookings	$381.6	$296.6	28.7%
Total Backlog	$858.2	$703.4	22.0%
Net Income	$15.1	$22.0	(31.4%)
Diluted EPS	$0.33	$0.48	(31.3%)
Adjusted EBITDA*	$66.7	$48.2	38.4%
Cash Resources	$108.0	$108.5	(0.5%)
Cash Provided by Operating Activities	$40.2	$43.8	(8.2%)
Capital Expenditures	$22.1	$17.2	28.5%

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

Revenue

Full-year 2006 revenue totaled $347.9 million, versus $292.2 million in 2005. The $55.7 million year-over-year improvement included revenue increases of $26.3 million in software licenses, $14.0 million in consulting and other non-recurring services, $7.9 million in software maintenance and $7.5 million in outsourced services.

Non-recurring revenue represented 49.6% of total revenue in 2006, compared to 45.2% in 2005, driven by larger increases in license and consulting revenue.

Fourth quarter revenue was $88.5 million, versus $74.8 million in the fourth quarter a year ago.

New Business Bookings

For the full-year 2006, TriZetto signed 1,008 new customer contracts with a total value of $381.6 million, compared to $296.6 million in 2005. 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 based upon a number of factors including product mix.

Fourth-quarter new contract bookings were $139.7 million, and included $59.5 million for outsourced services contracts (software hosting, business process outsourcing and other services); $47.4 million for software license contracts; and $32.8 million for consulting, implementation, software customization and other services.

Backlog

The company's total revenue backlog was approximately $858 million at December 31, 2006, compared to $703 million at December 31, 2005 and $748 million at September 30, 2006. Twelve-month revenue backlog was approximately $213 million at December 31, 2006, compared to $185 million at December 31, 2005 and $192 million at September 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

Full-year 2006 net income was $15.1 million, or $0.33 per diluted share, compared to net income of $22.0 million, or $0.48 per diluted share, in 2005. The 2006 year's EPS included a ($0.29) charge for the settlement of patent litigation with McKesson Corporation taken in the third quarter, and ($0.13) 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.

Due to the company's Federal net operating loss (NOL) carry forwards, the company's 2006 tax provision represented an effective rate of approximately 14.2%. In 2007, we expect that the tax rate reflected on the financial statements will be approximately 40%.

At year-end 2006, TriZetto had $38 million of NOL carry forwards available to use in 2007. While the NOL will reduce cash taxes to be paid in 2007 by an estimated $15 million, it will not reduce the tax expense recorded to the income statement. The $15 million estimated cash benefit of the NOL will be applied directly to the company's balance sheet.

Adjusted EBITDA for 2006 was $66.7 million, up 38.4% from $48.2 million in 2005. Fourth quarter Adjusted EBITDA was $17.8 million, versus $12.8 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.

Record gross margin for 2006 was 48.4%, compared to 45.8% in 2005. Recurring revenue gross margin for 2006 was 43.7%, versus 42.0% in 2005; non-recurring revenue gross margin for 2006 was 53.3%, versus 50.3%. The improvements were driven primarily by a higher-margin mix of revenue, improved pricing and operating efficiencies. Fourth quarter gross margin was also a record at 49.9%.

Research and development expenses of $42.8 million represented 12.3% of 2006 revenue, 150 basis points higher than 10.8% of revenue for 2005. 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.

Selling, general and administrative expense for 2006 was $103.8 million, or 29.8% of revenue, including the $15 million litigation settlement charge, compared to $76.8 million in 2005. In addition to the litigation settlement charge, the increase over 2005 reflects higher wages and benefits for investments in sales and market-facing positions, expense for equity based compensation under SFAS 123R, higher incentive plan accruals and higher net legal costs.

Cash Resources and Cash Flow

Cash, restricted cash and short-term investments totaled $108.0 million at December 31, 2006, versus $108.5 million at December 31, 2005. Net cash provided by operating activities during 2006 was $40.2 million, including the first $7.5 million payment of the McKesson settlement. This compares to $43.8 million for 2005. Capital expenditures in the fourth quarter of 2006 were $6.2 million, bringing the year to $22.1 million, versus $17.2 million in 2005. Days sales outstanding for the fourth quarter of 2006 was 69 days, versus 61 in the year-ago quarter and 63 in the third quarter of 2006.

Guidance for 2007 includes full tax rate

For the full year 2007, TriZetto expects between $425 and $445 million of revenue, representing a 22% to 28% increase over 2006. TriZetto expects diluted EPS to be $0.39 to $0.50 which includes an estimated ($0.25) per share negative impact, as compared to 2006, due to the effect of a full tax rate in 2007 caused by the application of the remaining NOL cash benefit to the balance sheet. Non-cash items having a negative impact on 2007 EPS include the expensing of equity based compensation, estimated at ($0.12), and depreciation and amortization, estimated at ($0.40).

Adjusted EBITDA for 2007 is expected to be between $88 and $98 million, an increase of 32% to 47% over 2006 Adjusted EBITDA. Capital expenditures in 2007 are expected to be between $25 and $28 million. The diluted share count for 2007, which is determined as if the company's $100 million of convertible debt is fully converted to equity, is expected to be approximately 54 million.

For the first quarter of 2007, the company expects revenue of between $100 and $110 million, EPS of between $0.08 and $0.12 on a diluted share count of approximately 53 million, and Adjusted EBITDA of between $20 and $23 million.

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

With its technology touching nearly half of the U.S. insured population, TriZetto is distinctly focused on accelerating the ability of healthcare payers to lead the industry's transformation to consumer-retail healthcare. The company provides premier information technology solutions that enhance its customers' revenue growth, increase 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, Calif., 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, anticipated dilution or accretion of 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 February 5, 2007. 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