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Press Release

North Richland Hills, Texas – July 26, 2007 – HealthMarkets announced today that Marc Franklin “Frank” Jackson has joined the Company as Chief Information Officer. In his new position, Jackson will have responsibility for all information technology systems and programs for the Company.

HealthMarkets is a leading provider of affordable health and life insurance to the self-employed, individuals and small businesses through its subsidiaries, The MEGA Life and Health Insurance Company, Mid-West National Life Insurance Company of Tennessee and The Chesapeake Life Insurance Company.

With more than a million policy holders across 44 states, IT plays a key role for HealthMarkets in delivering quality service to customers, whether they hold a traditional PPO plan, a defined benefit plan or a consumer-guided plan offering powerful Web tools that help consumers shop for health care.

“At HealthMarkets, information technology is a key driver of our business success,” said William J. Gedwed, HealthMarkets President and Chief Executive Officer. “I am delighted that Frank is joining our team. He has a unique combination of experience and IT skills that will build on our already strong technology group, allowing our Company to grow while continuing to offer superior customer service.”

Prior to joining HealthMarkets, Jackson served as Chief Information Officer of Private Healthcare Systems, a leading national health care and cost management firm. He served as Vice President and Chief Technical Officer of Blue Cross Blue Shield of North Carolina from 2001 until 2005, and served as Vice President of Technology and Data Center Operations from 1996 to 2001. Prior to Blue Cross Blue Shield, Jackson was the Chief Information Officer at Kaiser Permanente of North Carolina from 1993 to 1996.

“HealthMarkets is a company that is willing to invest in the steps necessary to be successful,” Jackson said. “They have well-defined business goals and understand they will need a flexible, robust and agile IT infrastructure to support the business agenda.”

Jackson earned his MBA from the University of Missouri, St. Louis and holds a B.S. in Computer Science and Accounting from the University of Evansville in Evansville, Indiana. He has served as Corporate Chairman for United Way and as well as a member of Managed Care Executive Group and the American Association of Preferred Provider Organization (AAPPO).

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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