Centene Corporation Announces Entry into South Carolina Medicaid Market with Purchase of PhyTrust of South Carolina
South Carolina Becomes Seventh Centene Medicaid Market

ST. LOUIS--(BUSINESS WIRE)--Centene Corporation (NYSE: CNC) today announced Total Carolina Care (TCC), a wholly-owned subsidiary of Centene, has entered into an agreement under which TCC would purchase PhyTrust of South Carolina, a Medicaid Medical Home Network that serves over 30,000 members. Pending the South Carolina Department of Health and Human Services (SCDHHS) approval, TCC will acquire PhyTrust to form an organization that will deliver high quality healthcare to South Carolina Medicaid recipients while providing SCDHHS with an integrated managed care solution tailored to the diverse needs of the state.

Christopher D. Bowers, Centene's Acting Head, Health Plan Business Unit, stated, "We are very excited to bring our inclusive Medicaid managed care solution to South Carolina, and we look forward to partnering with SCDHHS to enhance its consumer-oriented Medicaid reform program that will improve health and quality of life for South Carolina Medicaid recipients." Regarding the purchase of PhyTrust, Mr. Bowers stated, "As the second largest managed care entity presently operating in the state, PhyTrust is an established leader in the South Carolina market. Through this ownership change, TCC will build upon the local approach for every market to ensure our healthcare delivery model is carried out by the stakeholders of the communities we serve."

PhyTrust, headquartered in Myrtle Beach, South Carolina, is a physician-driven medical services company that works closely with its network physicians to improve the care for its Medicaid members. Dr. Keith Collins, Founder and CEO of PhyTrust, stated, "Our transfer of ownership to TCC will enable us to bring our South Carolina Medicaid expertise and resources to Centene Corporation to ensure that our members have a medical home that will lead to better health outcomes."

J. Per Brodin, Centene Senior Vice President and Chief Financial Officer, concluded with the following, "We are privileged to have Dr. Collins and his team join Total Carolina Care, and together we will maintain the leadership position in the market by providing high quality healthcare while maximizing the state's return on each Medicaid dollar we receive."

The transaction is expected to close in the second quarter of 2007. Both parties are working with the state to determine the appropriate timeframe during which they may transition members from PhyTrust to TCC. Centene will provide more information related to its entry into the South Carolina market when it becomes available.

About Centene Corporation

Centene Corporation is a leading multi-line healthcare enterprise that provides programs and related services to individuals receiving benefits under Medicaid, including Supplemental Security Income (SSI) and the State Children's Health Insurance Program (SCHIP). The Company operates health plans in Georgia, Indiana, New Jersey, Ohio, Texas and Wisconsin. In addition, the Company contracts with other healthcare and commercial organizations to provide specialty services including behavioral health, disease management, long-term care, managed vision, nurse triage, pharmacy benefit management and treatment compliance. Information regarding Centene is available via the Internet at www.centene.com.

Source: Centene Corporation