Sutter Health and Blue Shield of California Announce Agreement

SACRAMENTO, Calif., August 6, 2002 - Not-for-profit health plan Blue Shield of California and the not-for-profit Sutter Health network of health care providers announced today that they reached agreement on a new contract effective January 1, 2003. The agreement ensures that Blue Shield members may continue to seek uninterrupted medical services from more than two dozen community-based hospitals and physician organizations affiliated with Sutter Health. Financial terms of the agreement were not disclosed.

"Blue Shield is committed to maintaining stable relationships with our provider organizations. We're happy to have reached an agreement that enables our members to continue to receive services from Sutter Health providers," said Blue Shield Chairman and Chief Executive Officer Bruce Bodaken.

"Sutter Health is pleased that Blue Shield members will continue to benefit from our comprehensive network of hospitals, physicians and other medical services." said Sutter Health President and Chief Executive Officer Van R. Johnson. "As a not-for-profit organization, we're committed to preserving access to high-quality health care in Northern California."

Founded in 1939, Blue Shield of California is one of the state's leading healthcare companies. Headquartered in San Francisco, the not-for-profit corporation has nearly 2.3 million members, 3,700 employees and more than 20 office locations throughout California. For more information on Blue Shield, visit the company's Web site at www.mylifepath.com.

Contact
Karen Garner
Communications Manager, Sutter Health
916-286-8297
garnerk@sutterhealth.org