NEWPORT BEACH, Calif. - October 30, 2007 - The TriZetto Group, Inc. (NASDAQ: TZIX) today reported diluted earnings per share (EPS) for the third quarter 2007 of $0.17, on revenue of $106.9 million, versus a net loss of ($0.13) per share a year ago.

"Third quarter results were in-line with our guidance and reflected expected summer seasonality and the normal variability of contract closings," said Jeff Margolis, TriZetto's chairman and chief executive officer. "Our raised guidance reflects our strong confidence in achieving our 2007 objectives. As we look ahead to 2008, TriZetto is expecting revenue growth of 11% to 14% from continuing operations, and we are targeting diluted EPS growth of at least 30%."

"TriZetto solutions for driving administrative efficiency and improving the cost and quality of care continue to positively impact the business of our customers," added Kathleen Earley, TriZetto's president and chief operating officer. "Third quarter results affirmed our strategy for cross selling hosting, revenue enhancement and cost and quality of care solutions to current as well as newly-acquired customers. We have a strong blend of established and new products, good operating control of the business, and a well-aligned leadership team."

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

	Quarter Ended Sep. 30, 2007	Quarter Ended Sep. 30, 2006	Change
Revenue	$106.9	$86.4	23.7%
Bookings	$74.5	$75.9	(1.8%)
Total Backlog	$941.1	$747.8	25.8%
Income Before Taxes	$12.8	($5.8)	n.a.
Effective Tax Rate	24.9%	(1.8%)	2,670 bps
Net Income	$9.6	($5.7%)	n.a.
Basic EPS	$0.21	($0.13)	n.a.
Diluted EPS	$0.17	($0.13)	n.a.
Adjusted EBITDA*	$21.7	$17.9	21.2%
Cash Resources	$249.9	$88.4	182.7%
Cash (Used in) Provided by Operating Activities	$(0.5)	$14.5	n.a.
Capital Expenditures	$5.0	$5.1	(2.0%)

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

Revenue

Third quarter 2007 revenue totaled $106.9 million, versus $86.4 million in 2006. A $26.0 million increase in services revenue included increases of $12.9 million in consulting and other services, $9.5 million in software maintenance and $3.6 million in outsourced services. Software products revenue decreased $5.5 million from the year-ago quarter.

Recurring revenue represented 55.6% of total revenue in the third quarter of 2007, compared to 49.5% in the year-ago quarter, driven by a 42% increase in software maintenance revenue and an 18% increase in outsourced business services.

New Business Bookings

Third quarter new contract bookings were $74.5 million, and included $33.0 million for software product contracts; $25.9 million for consulting, implementation, software customization and other services; and $15.6 million for outsourced services contracts (software hosting, business process outsourcing and other services). 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.

Backlog

The company's total revenue backlog was approximately $941 million at September 30, 2007, compared to $748 million at September 30, 2006 and $944 million at June 30, 2007. Twelve-month revenue backlog was approximately $226 million at September 30, 2007, compared to $192 million at September 30, 2006 and $229 million at June 30, 2007. 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 2007 net income was $9.6 million, or $0.17 per diluted share, compared to a net loss of ($5.7) million, or ($0.13) per diluted share, for the third quarter of 2006. The third quarter 2007 included $0.03 for a non-cash change in fair value of derivative securities related to certain aspects of the convertible notes issued in the second quarter (as reported in the company's most recent 10-Q) and $0.03 for implementing tax strategies that normalized the company's effective tax rate to approximately 39% on a year-to-date basis. The third quarter 2006 included a $15 million patent litigation settlement charge that has been paid in full. Adjusted EBITDA for the third quarter of 2007 was $21.7 million, up 21.3% from $17.9 million in the year-ago quarter.

Gross Margin, R&D and SG&A

Gross margin, excluding amortization of acquired technology and intangibles, for the third quarter of 2007 was 49.1%, compared to 47.9% in the year-ago quarter. The improvement was driven primarily by operating efficiencies and improved pricing.

Research and development expenses were $14.7 million, representing 13.7% of third quarter revenue, compared to $10.6 million, or 12.2% of revenue, for the year-ago quarter. The increase reflected primarily the addition of Plan Data Management and QCSI products, higher utilization of outside development services, increased staffing, merit increases and higher incentive compensation.

Selling, general and administrative expense for the third quarter of 2007 was $24.8 million, or 23.2% of revenue, compared to $35.5 million, or 41.1% in the 2006 quarter. The year-over-year dollar decrease was primarily due to the absence of patent litigation and settlement costs incurred in the year-ago quarter offset by increased costs related to acquisitions and higher incentive compensation.

TriZetto reports earnings in accordance with Generally Accepted Accounting Principles (GAAP), and additionally reports certain non-GAAP measures, such as Adjusted EBITDA, recurring and non-recurring revenue and other measures, believing that these provide additional information for investors to evaluate the company's financial performance. Definitions of non-GAAP measures and reconciliation to GAAP measures are included in the attached financial schedules.

Cash Resources and Cash Flow

Cash, restricted cash and short-term investments totaled $249.9 million at September 30, 2007, versus $88.4 million at September 30, 2006. Capital expenditures in the second quarter of 2007 were $5.0 million, versus $5.1 million in the prior-year quarter. Days sales outstanding for the third quarter of 2007 was 71 days, versus 63 in the year-ago quarter.

Raising Guidance for 2007

For the full year 2007, TriZetto expects between $445 and $455 million of revenue, representing a 28% to 31% increase over 2006. TriZetto expects diluted EPS to be $0.46 to $0.51 which includes an estimated ($0.21) 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 diluted EPS total ($0.54). These items include the expensing of equity based compensation estimated at ($0.11); depreciation and amortization estimated at ($0.35); and the impact of utilizing the as-if-converted methodology for share count estimated at ($0.08), which was not factored into original 2007 EPS guidance. Basic EPS is expected to be $0.57 to $0.64 on basic share count of approximately 45 million.

Adjusted EBITDA for 2007 is expected to be between $93 and $98 million, an increase of 39% 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 both of the company's convertible debt issuances are fully converted to equity, is expected to be approximately 61 million. If the issuances, which may be settled in cash or stock, were treated as debt, the diluted share count for 2007 would be approximately 48 million.

Preliminary 2008 Guidance

For 2008, the company expects revenue of between $480 and $500 million, representing an 11 to 14% growth rate from continuing operations and reflecting the company's planned exit from non-strategic on-site administrative BPO and ClaimsLink services, which generated approximately $15 million of revenue in 2007. The company is targeting 2008 diluted EPS growth of at least 30% and expects to provide more detailed guidance on its full-year 2007 results announcement.

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, 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. Investors may also dial in by telephone. The live call number is 517-308-9248 with a conference ID of TZIX. The replay is available at 203-369-3666.

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 October 30, 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 and Media:
Brad Samson
949-719-2220
brad.samson@trizetto.com