NEWPORT BEACH, Calif. – February 11, 2005 – The TriZetto Group, Inc. (Nasdaq: TZIX), today reported its first full profitable year, earning $0.18 per share on revenue of $274.6 million, exceeding both revenue and earnings guidance. The company also announced that annual new contract bookings increased 45% over the prior year to $335 million.

"Record earnings for the fourth quarter and the achievement of our first profitable year reflect strong growth in component software sales, our exit from less profitable lines of business, the development and growth of a more strategic base of recurring revenue, and good control over our cost structure," said TriZetto Chairman and CEO Jeff Margolis. "We are fortunate to have customers that comprise the most enduring payer franchise in the healthcare industry. Not only does TriZetto provide these customers with the most efficient and innovative solutions for today's complex healthcare environment, but we are also strongly positioned to aggressively address their expanding opportunities in consumer directed healthcare, care management, managed Medicare and Medicaid, and direct electronic connectivity. These are the areas where we expect our customers to focus the majority of their discretionary I.T. spending."

Financial Summary (millions except per share and DSO amounts):

	Quarter Ended Dec. 31, 2004	Change from Quarter Ended Sep. 30, 2004	Year Ended Dec. 31, 2004	Change from Year Ended Dec. 31, 2003
Revenue	$74.3	10.9%	$274.6	(5.4%)
Bookings	$58.8	(21.6)%	$335.3	44.5%
Backlog	$585.0	(0.3)%	$585.0	17.9%
Diluted EPS	$0.13	8.3%	$0.18	n.m.
EBITDA	$14.2	8.4%	$35.8	45.5%
Free Cash Flow	$9.0	36.4%	$16.8	n.m.
Cash Resources	$73.1	35.4%	$73.1	(4.2%)
Day Sales Outstanding (DSO)	66	1.5%	67	13.6%

n.m. = not measurable

Revenue

New Business Bookings

The company continued to sell specialized component software in the fourth quarter, generating $18.5 million in bookings and $8.4 million in revenue. The quarter's component software sales included NetworX Modeler,TM NetworX Pricer,TM Facets e2TM Workflow, DirectLinkTM and CareAdvanceTM Enterprise. TriZetto launched its component software strategy in 2003 to provide additional value to its customers and build supplemental revenue opportunities, which can also lessen reliance on the timing of large enterprise software sales. For the full year, component software contract bookings were $61.1 million, growing more than tenfold from $5.0 million in 2003. Component software revenue for the year was $23.4 million, approximately 10 times the $2.1 million generated in 2003.

Backlog

Profitability

Fourth quarter profitability reflected higher software license sales, the benefits of previous cost actions, and higher consulting utilization. At year-end, TriZetto had realized a total of $20 million of cost savings from actions initiated in the second quarter of 2004. Ongoing operations are expected to benefit from the lower cost structure in place at the end of 2004.

Free cash flow in 2004 was $16.8 million compared to ($5.3) million in 2003. TriZetto reports earnings in accordance with Generally Accepted Accounting Principles (GAAP), and additionally reports certain non-GAAP measures such as EBITDA and free cash flow, believing that these provide additional information for investors to evaluate the company's financial performance. Definitions and reconciliations to GAAP of EBITDA and free cash flow are included in the attached financial schedules.

Cash Resources

2005 Outlook

Primary share count at December 31, 2004 was approximately 42.2 million, following the company's repurchase and placement into treasury of 5.5 million shares during the month of December. These shares were previously held by IMS Health Incorporated.

For the first quarter of 2005, the company expects revenue of approximately $62 to $67 million, between $8 and $10 million of EBITDA, and between $0.00 and $0.05 of EPS on a diluted share count of approximately 44 million.

Margolis added, "TriZetto is focused on growing free cash flow by increasing EBITDA at a long-term targeted rate approaching 30% per year, while maintaining capital spending at approximately our current rate. We project that organic revenue growth of 8 to 12% will be required to achieve these targets, depending on our mix of sales."

The company is evaluating the timing and effects of adopting Statement of Financial Accounting Standards No. 123 (revised 2004), Share-Based Payment, which affects accounting for stock options and other forms of stock-based compensation. This revised statement was issued in December 2004 and is effective July 1, 2005. The company's guidance for 2005 does not reflect the effect of applying the new accounting rules.

Conference 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

TriZetto serves the payer market, which is comprised primarily of national and regional health insurance plans, and benefits administrators that provide transaction services to self-insured employer groups. The company offers a broad portfolio of information technology products, including software, services and consulting, tailored to the needs of healthcare payers. 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 or proposed transactions. 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 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, 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 our 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 11, 2005. 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:

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

Information

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