The Board of Directors of Health Net, Inc. announced changes in key senior management responsibilities, effective immediately. The board has directed Jay Gellert, president and chief executive officer, to focus his efforts on the company’s strategy, with particular emphasis on how best to deploy the company’s assets in the current competitive and economic environment. James Woys, chief operating officer, will assume responsibility for all operational matters of the company, including the commercial, Medicare and Medicaid lines of business, as well as the Government and Specialty Division and all company administrative functions. Stephen Lynch, currently president of the company’s Health Plan Division, will retire on Feb. 28, 2009, and report to Woys during this transition.

Roger Greaves, chairman of Health Net, Inc.’s board of directors said, “Health Net’s board is very concerned about the company’s recent financial performance. We believe that by refocusing management resources, we can address our challenges with greater intensity.

“Today’s decision reflects the board’s confidence in Jim Woys as a strong and effective leader of Health Net’s operations. In light of the economic uncertainty surrounding our industry and the likelihood of public policy changes, we have directed Jay to focus all of his attention and considerable expertise on the company’s strategic direction.”

About Health Net

Health Net, Inc. is among the nation’s largest publicly traded managed health care companies. Its mission is to help people be healthy, secure and comfortable. The company’s health plans and government contracts subsidiaries provide health benefits to approximately 6.7 million individuals across the country through group, individual, Medicare, Medicaid and TRICARE and Veterans Affairs programs. Health Net’s behavioral health subsidiary, MHN, provides mental health benefits to approximately 7.0 million individuals in all 50 states. The company’s subsidiaries also offer managed health care products related to prescription drugs, and offer managed health care product coordination for multi-region employers and administrative services for medical groups and self-funded benefits programs.

For more information on Health Net, Inc., please visit the company’s Web site at www.healthnet.com.