NEWPORT BEACH, Calif. – February 4, 2003 – The TriZetto® Group, Inc. (Nasdaq:TZIX) reported financial results today for the fourth quarter and year ended December 31, 2002. The company's results for 2002 were within the guidance range for revenue and pro forma earnings issued to the investment community in January of last year.

In commenting on the year, Jeffrey H. Margolis, TriZetto's chief executive officer, said, "In 2002, our management team continued to build a sustainable business for the long term. In the face of a soft technology market, we grew revenue from existing operations by a solid 22%. We also made substantial investments in our products and services, while maintaining a balance sheet with over $81 million in cash and equivalents at year-end. Further, we made progress toward becoming profitable, improving our earnings before interest, taxes, depreciation and amortization (EBITDA) by 82% year over year."

Fourth Quarter Financial and Operations Highlights

• Total revenue grew to $70.1 million in the fourth quarter of 2002, an increase of 14% over the $61.6 million reported in the fourth quarter of 2001. All of the increase was from existing operations.
• Net loss for the fourth quarter of 2002 improved to $2.0 million or $0.04 per diluted share compared with a net loss of $16.6 million or $0.38 per diluted share in the fourth quarter last year.
• Diluted pro forma earnings per share were $0.12 in the fourth quarter of 2002, compared with $0.16 in the same quarter last year. (Note: pro forma numbers exclude amortization of acquisition-related intangibles and deferred stock compensation, write-offs of in-process research and development costs, restructuring and related impairment charges and related taxes.)
• EBITDA was $9.8 million in the fourth quarter of 2002, compared with EBITDA of $9.2 million in the fourth quarter of 2001.
• Days sales outstanding were 51 for the fourth quarter 2002.
• Total revenue backlog at December 31, 2002 was approximately $588.0 million. Twelve-month revenue backlog was approximately $178.0 million. The timing of contract closings and other factors can cause the company's backlog to vary from one quarter to the next.
• 305 contracts were signed in the fourth quarter, with a total value of $60.7 million. 44 of these were business services contracts (software hosting and other outsourcing services) valued at $27.7 million, and 55 were software license contracts valued at $18.9 million. 206 contracts were for consulting and implementation services, valued at $14.1 million.

"New bookings improved from $22.8 million in the third quarter of 2002 to $60.7 million in the fourth quarter," Margolis said. "One of the largest contracts signed in the fourth quarter was with Preferred Health Networks (PHN), a subsidiary of CareFirst Blue Cross and Blue Shield in Maryland. PHN extended its hosting, business process outsourcing and IT outsourcing contract for two years. In addition, we signed Blue Cross and Blue Shield of Louisiana (BCBSLA) in the fourth quarter, a 950,000-member plan that was the 14th Blues plan to become a TriZetto customer. The BCBSLA plan purchased licenses for Facets, HIPAA Gateway and HIPAA Privacy. We also signed a Facets and HIPAA Gateway license agreement with Fidelis Care, a non-profit health plan serving New York state."

"Closing more new business remains our top priority," Margolis said. "At the beginning of this year, we augmented our sales force to increase penetration in the large health plan market. Our new sales professionals have excellent experience selling large recurring revenue contracts in the healthcare industry. In addition, we have assigned a multi-disciplinary pursuit team, including a senior executive, to focus on each prospect. We believe these changes will help improve sales execution."

"In 2003, we plan to continue implementing the three-year strategic plan developed last year," Margolis said. "One of our lead strategies is to continue to make the investments needed to win in the payer market. Toward that end, we have been investing in Facets Extended Enterprise™ (Facets e2), a major expansion of our market-leading Facets software. Slated for release in June 2003, Facets e2 will have enhanced functionality, e-business capabilities and productivity tools for health plans. We are aligning all of our products and services and internal operations with the way our customers do business, and upgrading our service delivery architecture. We also plan to invest in the training and development of our workforce, and in an enterprise resource planning system to keep pace with our growth. We believe these investments, coupled with improving sales and operational execution, will generate returns for shareholders this year and into the future."

Financial Review / Outlook

The financial guidance issued on January 14, 2003 remains unchanged. Go to www.trizetto.com "Investor Relations," "Financial Reports," to view 2003 guidance for the first quarter of 2003 and for the year. TriZetto's actual financial results may vary from guidance, depending upon such factors as the timing of contract signings, competition and changes in demand for products and services.

Revenue – Fourth quarter revenue totaled $70.1 million, up 14% from $61.6 million in the fourth quarter of 2001. All of the increase was organic, the result of growth in software license, maintenance and implementation revenue. The company expects revenue to be lower in the first quarter of 2003 than in the fourth quarter of 2002 due to the typical seasonality of its software license business.

Recurring revenue totaled $38.3 million in the fourth quarter of 2002 and non-recurring revenue was $31.8 million. Recurring revenue in the fourth quarter was 55% of total revenue, compared with 64% in the fourth quarter of 2001 and 59% in the third quarter of 2002. The decrease in the percentage of recurring revenue reflects a change in the mix of business, toward higher non-recurring revenue associated with several large customer implementations and consulting contracts. Over time, TriZetto expects recurring revenue as a percent of total revenue to increase.

EBITDA – TriZetto posted EBITDA of $9.8 million in the fourth quarter of 2002, compared with $9.2 million in the fourth quarter of 2001 and EBITDA of $7.7 million in the third quarter of 2002. The sequential improvement in EBITDA reflects higher revenue and continued emphasis on pricing discipline and cost control throughout the company. The company expects EBITDA to be lower in the first quarter of 2003 than in the fourth quarter of 2002, reflecting seasonally lower revenue that is typical in the first half of the year.

Net Loss/Per Share Data – TriZetto reported a net loss of $2.0 million in the fourth quarter of 2002, or a loss per diluted share of $0.04, compared with a loss of $16.6 million or $0.38 per diluted share in the fourth quarter of 2001. The improvement is primarily the result of eliminating goodwill amortization from the income statement as required by Financial Accounting Standard 141 & 142, which went into effect on January 1, 2002.

TriZetto's pro forma net income in the fourth quarter of 2002 was $5.8 million, or $0.12 per diluted share, compared to pro forma net income of $7.1 million, or $0.16 per diluted share in the fourth quarter of 2001. The decline is primarily the result of higher operating depreciation and amortization resulting from product-related investments. The decline was partially offset by higher EBITDA.

Cash Resources – Cash, restricted cash and short-term investments totaled $81.1 million at December 31, 2002. TriZetto used approximately $4.1 million in cash from operations during the fourth quarter of 2002.

Financial Accounting Standards 141 & 142 – During the fourth quarter, TriZetto performed its annual test of impairment and determined that its goodwill was not impaired. The nature and scope of the impairment tests conducted present the risk that between the date of this disclosure and the company's filing of its Form 10-K with the Securities and Exchange Commission, subsequent events or determinations could require goodwill and other intangible asset charges to be recorded. Subsequent to year-end, TriZetto has seen a decrease in the value of its common stock and therefore the company is updating its impairment analysis on its identifiable and unidentifiable intangible assets and goodwill. At this time, TriZetto believes there may be a write-down for fiscal 2002 of its identifiable and unidentifiable intangible assets and goodwill. The company is in the process of determining the amount of the write-down, if any. This potential write-down would have no effect on TriZetto's cash flow, cash flow from operations, EBITDA or pro forma earnings.

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.

Conference Call

Important Notice Regarding Forward-Looking Statements

Actual results may differ materially from those stated in any forward-looking statements based on a number of factors, including the effectiveness of TriZetto's implementation of its business plan, the market's acceptance of TriZetto's services, 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, risks associated with acquisitions, changes in demand for third party products or solutions, which form the basis of TriZetto's service offerings, financial stability of our customers, the ability of TriZetto to meet its contractual obligations to customers, changes in government laws and regulations and risks associated with rapidly changing technology, as well as the other risks identified in TriZetto's Form 10-K and other SEC filings.

CONTACTS:

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

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