NEWPORT BEACH, Calif. – April 26, 2005 – The TriZetto Group, Inc. (Nasdaq: TZIX), today reported first quarter results of $71.8 million of revenue, $12.0 million of EBITDA and $0.10 of earnings per share (EPS), all above the company's guidance ranges. The company expects a solid year ahead and adjusted its annual guidance upward.

"Our first quarter results reflect solid growth of enterprise software and consulting revenue, beneficial timing of new contracts, as well as the benefits of last year's operational improvements, cost reductions and cost management discipline continuing into 2005," said TriZetto Chairman and CEO Jeff Margolis. "The 19 cent increase in EPS from the first quarter a year ago demonstrates how far we have come."

"Looking ahead, we are still early in the acceptance cycles of our newest software and service offerings for consumer directed healthcare, advanced care management, enhanced managed Medicare and Medicaid, and direct electronic connectivity," said Kathleen Earley, TriZetto's President and COO. "These solutions offer compelling value and returns for our customers and represent incremental revenue and margin opportunities to our base of proven software and services."

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

	Quarter Ended Mar. 31, 2005	Quarter Ended Mar. 31, 2004	Change
Revenue	$71.8	$65.8	9.1%
Bookings	$53.1	$81.0	(34.4)%
Total Backlog3	$604.8	$508.9	18.8%
Diluted EPS	$0.10	($0.09)	n.m.
EBITDA1	$12.0	$2.1	471.4%
Free Cash Flow2	$10.1	($1.6)	n.m.
Cash Resources	$54.1	$75.7	(28.5%)
Day Sales Outstanding (DSO)	72	75	(4.0%)

n.m. = not measurable
1,2,3 Definitions are included in the attached financial schedules

New Business Bookings

TriZetto signed 249 new customer contracts in the first quarter with a total value of $53.1 million, compared to $58.8 million in the fourth quarter of 2004 and $81.0 million in the year-ago quarter. 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. Of the new first quarter contracts, 20 were outsourced services contracts (software hosting, business process outsourcing and other services) valued at $6.7 million; 60 were software license contracts valued at $36.1 million; and 169 were for consulting, implementation services, software customization and other services valued at $10.3 million.

Specialized component software generated $8.6 million in bookings and $4.0 million in revenue in the first quarter of 2005, compared to $7.3 million in bookings and $2.6 million in revenue a year ago. The quarter's component software sales included NetworX ModelerTM, Clinical CareAdvanceTM and Workflow.

Backlog

At March 31, 2005, the company's total revenue backlog was approximately $605 million, compared to $509 million at March 31, 2004 and $585 million at December 31, 2004. Twelve-month revenue backlog was approximately $172 million at March 31, 2005, compared to $162 million at March 31, 2004 and $173 million at December 31, 2004. These metrics reflect the company's strength in replacing lost revenue backlog stemming from the loss of two customers and the exit of several business lines. This backlog was replaced with new business contracts, expected to yield higher margins than the lost backlog. The timing of contract closings and other factors can cause the company's backlog to vary from one quarter to the next.

Profitability

First quarter net income was $4.3 million, or $0.10 per diluted share, compared to a net loss of ($4.3) million, or ($0.09) per share, in the first quarter of 2004. EBITDA was $12.0 million, compared to $2.1 million a year ago.

Compared to the year-ago period, first quarter 2005 profitability reflected a higher margin product mix, the benefits of cost actions taken in the second quarter 2004, and the completion of a significant fixed-fee implementation project. Gross margin for first quarter 2005 was 44.8%, representing a 1,700 basis point increase from the year earlier period. Recurring revenue gross margin increased 1,400 basis points year-over-year and non-recurring revenue gross margin increased 2,000 basis points.

Research and development expenses represented 11.8% of revenue, compared to 10.8% in the year ago quarter, reflecting higher development investments in Facets, QicLink, HealthWeb and CareAdvance software. Selling, General and Administrative expenses were 25.2% of revenue compared to 21.4% in the year ago quarter. The difference was primarily due to senior staff additions in the second half of 2004, higher incentive compensation, higher legal costs, incremental professional fees to support Sarbanes-Oxley compliance, and costs for termination of facility leases.

Free cash flow in the first quarter 2005 was $10.1 million compared to ($1.6) million in the year-ago quarter, driven by higher EBITDA and lower capital expenditures. 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

Cash, restricted cash and short-term investments totaled $54.1 million at March 31, 2005 versus $75.7 million a year ago. The company used $37.6 million of cash during the quarter to pay off the note relating to the purchase of TriZetto shares from IMS Health in December 2004. Net cash provided by operating activities was $8.6 million in the first quarter 2005, compared to $5.6 million a year ago. Capital expenditures in the first quarter were $1.5 million, well below plan, partially due to timing. Days sales outstanding was 72 versus 75 in the year-ago quarter.

Raised Guidance For 2005

For the full year 2005, TriZetto expects between $280 and $284 million of revenue, between $44 and $47 million of EBITDA, $22 to $26 million of free cash flow and $0.30 to $0.36 of EPS, on a diluted share count of approximately 45 million. Capital expenditures in 2005 are expected to be between $17 and $19 million.

For the second quarter of 2005, the company expects revenue of approximately $65 to $69 million, between $7 and $10 million of EBITDA, and between $0.05 and $0.07 of EPS on a diluted share count of approximately 44 million.

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. The company's guidance for 2005 does not reflect the effect of applying the new accounting rules.

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

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 April 26, 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