NEWPORT BEACH, Calif. – October 25, 2005 – NEWPORT BEACH, Calif. - The TriZetto Group, Inc. (Nasdaq: TZIX) today reported third quarter results of $73.1 million of revenue, $0.14 of diluted earnings per share (EPS) and $13.3 million of Adjusted EBITDA. Based on its performance to date and expectations for the remainder of the year, TriZetto also raised its 2005 EPS guidance to a range of $0.40 to $0.45 from its previous range of $0.38 to $0.43.

"Strong new contract bookings of $75 million in the third quarter drove our 12-month backlog to $194 million, up 11% sequentially from the prior quarter," noted TriZetto Chairman and CEO Jeff Margolis. "Third quarter profitability benefited from a 9% year-over-year increase in revenue, coupled with improved margin contributions from our professional services and hosting businesses."

"In the third quarter, we set an all-time record for consulting bookings associated with several significant enterprise and component software sales," added President and COO Kathleen Earley. "We are pleased with customer demand for TriZetto's solutions that address consumer retail healthcare opportunities, changing government programs such as Managed Medicare and Medicare Part D, and opportunities to improve payers' cost and quality of care."

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

	Quarter Ended Sep. 30, 2005	Quarter Ended Sep. 30, 2004	Change
Revenue	$73.1	$67.0	9.1%
Bookings	$75.1	$75.0	0.1%
Total Backlog*	$663.1	$586.6	13.0%
Diluted EPS	$0.14	$0.12	16.7%
Net Income	$6.5	$6.0	8.3%
Adjusted EBITDA*	$13.3	$13.1	1.5%
Cash Resources	$57.8	$54.0	7.0%
Cash provided by (used in) operations	$3.6	($3.1)	n.m.
Capital Expenditures	$4.7	$5.8	19.0%
Day Sales Outstanding (DSO)	58	65	10.8%

* Definitions are included in the attached financial schedules

Revenue

Third quarter 2005 revenue totaled $73.1 million, versus $67.0 million in the third quarter of 2004. Increases of $8.1 million in consulting and other non-recurring revenue, $2.5 million in recurring software maintenance and $0.3 million in outsourced services revenue more than offset $4.8 million lower software license revenue.

Recurring revenue represented 54.0% of total revenue in the third quarter, compared to 54.7% a year ago, reflecting a similar mix of recurring (hosting, business process outsourcing and software maintenance) and non-recurring (software license and consulting) revenue.

New Business Bookings

TriZetto signed 261 new customer contracts in the third quarter with a total value of $75.1 million, compared to $75.0 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. The company currently targets $50 to $60 million of new contract bookings each quarter.

Of the new third quarter contracts, 171 were for consulting, implementation services, software customization and other services valued at $43.8 million; 64 were software license contracts valued at $29.7 million; and 26 were outsourced services contracts (software hosting, business process outsourcing and other services) valued at $1.6 million.

Specialized component software comprised 56.2% of total software bookings in the third quarter. These products generated $16.7 million of software license, maintenance and hosting bookings and $4.9 million of revenue in the third quarter of 2005. The quarter's component software sales included NetworX ModelerTM, NetworX PricerTM, CareAdvanceTM Enterprise, DirectLinkTM, Workflow, Facets e2TM CDH Suite, and Facets® eXtended Integration. Year-to-date, components have generated $54.2 million of bookings, up 27% compared to 2004, and revenue of $15.8 million, up 5% from the prior year.

Backlog

At September 30, 2005, the company's total revenue backlog was approximately $663 million, compared to $587 million at September 30, 2004 and $639 million at June 30, 2005. Twelve-month revenue backlog was approximately $194 million at September 30, 2005, compared to $171 million at September 30, 2004 and $175 million at June 30, 2005. 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 net income was $6.5 million, or $0.14 per diluted share, compared to net income of $6.0 million, or $0.12 per share, in the third quarter of 2004. The third quarter tax provision represented an effective rate of approximately 6%, which was offset by a state tax true-up realized in the quarter of $0.6 million. Adjusted EBITDA was $13.3 million, compared to $13.1 million in the third quarter a year ago. Second half 2004 profitability benefited from approximately $5 million of cost containment actions that did not repeat this year, of which $2 million occurred in the third quarter a year ago.

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

Year-to-date, net income was $15.8 million, or $0.35 per diluted share, compared to net income of $2.1 million, or $0.04 per share, in 2004. Adjusted EBITDA for the first nine months of 2005 was $35.4 million compared to $21.6 million in 2004.

Gross margin for third quarter 2005 was 45.6% compared to 46.3% in the year earlier period, and 46.1% in the second quarter 2005. Recurring revenue gross margin increased 330 basis points year-over-year and non-recurring revenue gross margin decreased 580 basis points. Year-to-date gross margin was 45.5% this year compared to 36.8% in 2004. Year-to-date recurring revenue gross margin increased 700 basis points and non-recurring revenue gross margin increased 1,020 basis points.

Research and development expenses represented 10.6% of revenue in the third quarter 2005, slightly lower than the 11.0% in the year-ago quarter, comprised of development investments in both enterprise and component software. Selling, general and administrative expenses were 25.4% of revenue, compared to 24.1% in the year-ago quarter. The increase was primarily due to senior staff additions in the second half of 2004, higher incentive compensation and higher outside services fees and expenses for strategic planning.

Cash Resources and Cash Flow

Cash, restricted cash and short-term investments totaled $57.8 million at September 30, 2005, versus $54.0 million a year ago, and $56.4 million at June 30, 2005.

The company received approximately $5 million in cash from the exercise of employee stock options in the third quarter. The company used $5.3 million of cash during the quarter to exercise an option for the repurchase of 600,000 shares from ValueAct Capital. Subsequent to the quarter, the company received net proceeds of $82 million of cash resulting from the completion of its convertible offering.

Net cash provided by operating activities was $3.6 million in the third quarter 2005 compared to cash used by operating activities of ($3.1) million a year ago. Capital expenditures were $4.7 million in the third quarter compared to $5.8 million in the year-ago quarter. Year-to-date capital expenditures are $10.6 million, compared to $12.3 million for the first nine months of 2004. Days sales outstanding was 58, versus 65 in the year-ago quarter.

Increased Guidance For 2005

For the full year 2005, TriZetto expects between $285 and $290 million of revenue, between $46 and $49 million of Adjusted EBITDA, and $0.40 to $0.45 of EPS, on a diluted share count of approximately 46 million. Capital expenditures in 2005 are expected to be between $17 and $19 million.

TriZetto is focused on growing Adjusted EBITDA at a long-term targeted rate approaching 30% per year, while maintaining capital spending at approximately the company's current rate. TriZetto projects that organic revenue growth of 8% to 12% will be required to achieve this target, depending on the 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. The company's 2005 reported results and guidance do not reflect the effect of applying the new accounting rules. In 2006, the company expects that the impact of adopting 123R will result in an incremental expense of between $6 and $8 million.

SEC Comment Letter

As reported in the company's 8-K filing of September 28, 2005, TriZetto received a letter from the SEC requesting clarification of certain of the company's accounting and disclosure practices. The company believes that the letter was issued by the SEC in the normal course of its mandate under the Sarbanes-Oxley Act to regularly review the periodic filings of all publicly traded companies. TriZetto has provided the SEC with the information requested and has been informed by the SEC that it has no further questions at this time. The company has not made, and does not expect to make, changes to its previously reported financial statements as a result of the SEC letter.

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, which healthcare payers utilize to improve their business processes and capitalize on new opportunities emerging from the consumerization of the healthcare industry. 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 October 25, 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:

Investors:
Brad Samson
949-719-2220
brad.samson@trizetto.com

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