NEWPORT BEACH, Calif. – February 27, 2001 – The TriZetto(R) Group, Inc. (Nasdaq: TZIX) reported financial results today for the fourth quarter and year ended December 31, 2000.

Fourth Quarter Highlights

• Total revenue grew from $11.2 million in the fourth quarter of 1999 to $34.2 million in the fourth quarter of 2000, an increase of 205%. Fourth quarter 2000 recurring revenue also increased 205% over the same period last year.
• The pro forma loss per share was ($0.25) in the fourth quarter of 2000, compared with a pro forma loss of ($0.18) per share in the fourth quarter of 1999. (Pro forma numbers exclude amortization of acquisition-related intangibles, deferred stock compensation and in-process research and development costs.)
• Reported net loss for the fourth quarter 2000 was ($18.0) million, and reported loss per share was ($0.53) compared with a loss of ($5.0) million or ($0.29) per share in the fourth quarter of 1999.
• The 12-month recurring revenue backlog at December 31, 2000 was approximately $114 million. Total recurring revenue backlog was approximately $400 million. Total recurring and software license backlog was approximately $413 million.
• 29 new recurring revenue and software contracts were signed in the fourth quarter of 2000, with a total contract value of $15.8 million. 20 of these were ASP contracts and 9 were software contracts.
• Days sales outstanding were 52 as of December 31, 2000.

"In the fourth quarter of 2000, we achieved several milestones," said Margolis. "Chief among them, we completed the acquisitions of Erisco and RIMS, two market-leaders that provide administrative software central to the operations of health plans and benefits administrators. Across our HealtheWare(TM), HealthWeb(R) and ASP business units, we believe TriZetto technology solutions touch 40% of the insured population in the United States.

"The integration of Erisco and RIMS into the TriZetto organization has been as rapid and seamless as can reasonably be expected," Margolis continued. "Our software licensing unit, HealtheWare, now houses the premium Erisco and RIMS brands. RIMS' application service provider (ASP) business has become part of our ASP unit, and RIMS' Web-based initiatives have been integrated with our HealthWeb unit. We now have three complementary business units, diverse sources of revenue, and abundant cross-selling opportunities.

"In the fourth quarter, we also completed the centralization of sales and marketing for the entire company," Margolis said. "We now have a coordinated sales force capable of selling all of TriZetto's products and services across our three target markets -- payers, providers and benefits administrators. In January we launched an aggressive direct mail campaign focused on all three markets, and the response thus far has been above expectations. We anticipate reaping the benefits of that campaign later on this year.

"We launched our combined Erisco Facets(R)-HealthWeb product, last fall, and it has been well received," said Margolis. "The combined product allows Erisco customers to open their Facets systems to the Internet, allowing rapid, real-time communications with members, providers and employer groups. Since the beginning of 2001, we have signed agreements with two large Blue Cross Blue Shield health plans for the combined product."

Financial Review/Outlook

Revenue - Fourth quarter total revenue was $34.2 million; recurring revenue totaled $23.2 million; and non-recurring revenue was $10.9 million. Year-over-year, revenue increased primarily as a result of increased ASP and consulting business, and the Erisco and RIMS acquisitions. Erisco and RIMS had forecasted approximately $9 million of fourth quarter 2000 revenue that TriZetto has not recognized in the quarter under generally accepted accounting principles. Organic revenue grew by 57% in the fourth quarter of 2000 compared with the same period in the prior year.

Revenue for the fourth quarter was 68% recurring and 32% non-recurring, flat with the same quarter last year. On a sequential basis (from the third to the fourth quarter), recurring revenue as a percent of total revenue declined from 73% to 68%. This decrease was anticipated as a result of the acquisition of Erisco and RIMS, which have a lower percentage of recurring revenue than TriZetto's ASP business. TriZetto expects recurring revenue as a percent of the total to increase gradually as 2001 progresses.

Total revenue for the year ended December 31, 2000 was $89.1 million, up 171% over 1999. Recurring revenue for the year was $61.8 million, an increase of 218% over the prior year, and non-recurring revenue was $27.2 million, up 102%. Organic revenue increased 47% in 2000 compared with 1999.

TriZetto anticipates that total revenue for 2001 will reach $208-$222 million compared with $89.1 million in 2000, driven by increases in its ASP, HealtheWare and HealthWeb businesses.

EBITDA (earnings before interest, taxes, depreciation and amortization) - The EBITDA loss in the fourth quarter of 2000 was ($6.9) million compared with an EBITDA loss of ($2.8) million in the fourth quarter of the prior year and ($4.4) million in the third quarter of 2000.

For the year 2000, the EBITDA loss was ($21.4) million versus ($3.5) million in 1999, reflecting TriZetto's investment in marketing and sales, as well as the technology and administrative infrastructure required for continued growth.

In 2001, TriZetto expects EBITDA of between $13.5 million and $17 million, and expects to achieve positive EBITDA by mid-year.

Net loss/EPS - TriZetto reported a net loss of ($18.0) million in the fourth quarter, or a loss per share of ($0.53), compared with a loss of ($5.0) million or ($0.29) per share in the fourth quarter of 1999. For the year, the reported net loss was ($42.3) million versus ($7.9) million in 1999.

TriZetto's pro forma net loss in the fourth quarter (see pro forma footnotes on attached financials) was approximately ($8.5) million, or ($0.25) per share, compared to a pro forma net loss of ($3.2) million or ($0.18) per share in the fourth quarter of 1999.

For the year, the pro forma net loss (see pro forma footnotes on attached financials) was ($25.7) million or a loss of ($1.09) per share versus a pro forma net loss of ($4.9) million or ($0.52) per share in 1999. In 2001, TriZetto expects pro forma results to range from a loss of ($.4) to income of $2.2 million.

Important Note: In the fourth quarter, the reported pro forma net income and earnings per share vary from TriZetto's previously published pro forma estimates that are used by analysts. The reported pro forma numbers exclude approximately $9 million in revenue forecasted by Erisco and RIMS that was not recognized by TriZetto under generally accepted accounting principles. The previous pro forma estimates included this revenue. TriZetto's calculation of these pro forma numbers is consistent with the methodology used by TriZetto in the first three quarters of 2000. There is no change to management's expected pro forma net income or earnings per share for 2001.

Cash Resources - TriZetto generated approximately $3.1 million in cash from operations during the fourth quarter. Cash, cash equivalents and short- term investments totaled $28.4 million at December 31, 2000. TriZetto believes that its cash resources are adequate to meet its requirements for at least the next 12 months.

TriZetto will be hosting a conference call to discuss its fourth quarter and year 2000 results today at 8:00 a.m. Pacific Time. To listen to the conference call via the Internet, go to TriZetto's Web site at http://www.trizetto.com and follow the instructions provided on the investor relations section of the site.

About TriZetto

The TriZetto(R) Group, Inc., is an information technology and services company focused on the healthcare industry. The company hosts and licenses software and provides e-business platforms, serving approximately 600 customers with more than 90 million enrollees. TriZetto's application service provider (ASP) unit hosts a broad selection of applications from multiple vendors for a predictable monthly fee. All of TriZetto's ASP offerings are configured for use over the Internet. TriZetto's HealthWeb(R) technology allows all healthcare participants -- health plans, providers, employers and members - to exchange information and conduct business over the Internet. HealtheWare(TM), the software engines unit, develops and licenses premium Erisco and RIMS applications for payers and benefits administrators. Headquartered in Newport Beach, Calif., TriZetto can be reached at (949) 719-2200, www.trizetto.com.

CONTACTS:

TriZetto Investor Relations
Anna Marie Dunlap
949-719-2236
am.dunlap@trizetto.com

TriZetto Media Relations
Jodi Amendola
480-657-9966, ext. 25
jamendola@cpronline.com