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Current CFO, Mark Hauptman, Takes on New Leadership Role

North Richland Hills, Texas - September 28, 2006 -- HealthMarkets, a leading provider of affordable health and life insurance for the self-employed, individuals and small businesses, announced Thursday the appointment of Michael Boxer as the Company's Chief Financial Officer.

Boxer has more than 20 years' experience in finance, and he has previously served as CFO of two public companies. Most recently, Boxer was President of The Enterprise Group Ltd., a health care financial advisory firm.

Prior to The Enterprise Group, Boxer served as Executive Vice President and Chief Financial Officer of Mariner Health Care, Inc., a $1.7 billion skilled nursing company, from 2003 until its sale in 2004. During his tenure, he increased shareholder value and implemented a centralization of internal processes. Prior to Mariner, Boxer was Senior Vice President and Chief Financial Officer at Watson Pharmaceuticals, Inc. Boxer earned his MBA from the University of Chicago and holds a B.S. in Business Administration from Colorado State University.

"Michael's strategic mindset and breadth of experience in managing both financial and operational aspects of an organization will be valuable to HealthMarkets," said HealthMarkets President and CEO William J. Gedwed. "This, combined with his enthusiasm for the Company, makes him an important addition to our team."

Effective immediately, Mark Hauptman, who has served as HealthMarkets' CFO since 2002, becomes an Executive Vice President of HealthMarkets' Agency Marketing Group. Hauptman will also continue as a HealthMarkets officer, as well as a Director and Vice President of The MEGA Life and Health Insurance Company, Mid-West National Life Insurance Company of Tennessee (based in Texas), and The Chesapeake Life Insurance Company.

"Over the past several months Mark has expressed a desire to move to the operations side of the business," said Gedwed. "Obviously, we are very pleased and fortunate to be able to tap Mark's depth of knowledge and broad experience at HealthMarkets by making this new assignment."

"I am looking forward to having a new focus and new challenges within the Company with this new leadership role," said Hauptman. "Our Agency Marketing Group ("AMG") is our number one asset, and I am excited to be working with AMG as we continue to build upon their success."

Hauptman started with HealthMarkets, then known as UICI, in 1988, as the accounting manager for the Life Division in Oklahoma City. In 1989, he became corporate controller at HealthMarkets' corporate headquarters. In 1998 he became the CFO for the Self-Employed Agency Division at the Insurance Center, now known as the Administrative Services Group (ASG). He moved back to the corporate side in 2001 as the Chief Accounting Officer and was later promoted to CFO. Hauptman received a B.S. in Accounting from Illinois State University.

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About HealthMarkets

HealthMarkets, headquartered in North Richland Hills, Texas, is a provider of health and life insurance products to individuals, families, the self-employed, Medicare beneficiaries and small businesses. HealthMarkets offers products and services through its licensed insurance subsidiaries The MEGA Life and Health Insurance Company, Mid-West National Life Insurance Company of Tennessee and The Chesapeake Life Insurance Company. The Company’s offerings include individual and self-employed health insurance, small employer group health insurance, life insurance and reinsurance. Through its Consumer Guided Health Insurance plans, HealthMarkets seeks to provide affordable and accessible health coverage to individuals and small businesses. The Company is owned by a group of private equity investors, including affiliates of The Blackstone Group, Goldman Sachs Capital Partners and DLJ Merchant Banking Partners, members of management and the Company’s independent, licensed agents through the Company’s agent stock accumulation plans. For more information, visit http://www.healthmarkets.com.

SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995:

Some of the matters discussed in this news release may contain forward-looking statements that are subject to certain risks, uncertainties and assumptions. Such forward-looking statements are intended to be identified in this document by the words "anticipate," "believe," "estimate," "expect," "intend," "objective," "plan," "possible," "potential" and similar expressions. Actual results may vary materially from those included in the forward-looking statements. Factors that could cause actual results to differ materially from those included in the forward-looking statements include, but are not limited to, general economic conditions; the continued ability of the Company to compete for customers and insureds in an industry where many of its competitors may have greater market share and/or greater financial resources; the Company’s ability to accurately estimate medical claims and control costs; changes in government regulation that could increase the costs of compliance or cause the Company to discontinue marketing its products in certain states; the Company’s failure to comply with new or existing government regulations that could subject it to significant fines and penalties and/or result in restrictions on its operations; changes in the relationship between the Company and the membership associations that make available to their members the health insurance and other insurance products issued by the Company’s insurance subsidiaries; changes in the laws and regulations governing so-called “association group” insurance (particularly changes that would subject the issuance of policies to prior premium rate approval and/or require the issuance of policies on a “guaranteed issue” basis); significant liabilities and costs associated with litigation; failure of the Company’s information systems to provide timely and accurate information; negative publicity regarding the Company’s business practices and/or regarding the health insurance industry in general; the Company’s inability to enter into or maintain satisfactory relationships with networks of hospitals, physicians, dentists, pharmacies and other health care providers; failure of the Company’s regulated insurance company subsidiaries to maintain their current ratings by A.M. Best Company, Fitch and/or Standard & Poor’s; and the other risk factors set forth in the reports filed by the Company from time to time with the Securities and Exchange Commission.

Media Contacts:

Donna Ledbetter
HealthMarkets Corporate Communications
(817) 255-5405
Donna.Ledbetter@healthmarkets.com
www.HealthMarkets.com

Karen Mellen
For HealthMarkets
(312) 596-3487
Karen.Mellen@bm.com