HealthMarkets, Inc. nnounced that it has completed another successful campaign raising donations for the U.S. Marine Reserve Toys for Tots DFW program (http://www.dfwtoysfortots.com). HealthMarkets employees have been involved with the Toys for Tots program since 1986 and this year donated $107,000 in cash and toys.

HealthMarkets® is the brand name for health insurance products underwritten and issued by the health insurance subsidiaries of HealthMarkets, Inc., located in North Richland Hills, TX. Health insurance products provided under the HealthMarkets brand are designed to provide personalized health insurance protection to individuals, families, the self-employed and small businesses.

The mission of the U.S. Marine Corps Reserve Toys for Tots Program is to collect new, unwrapped toys during October, November and December each year, and distribute those toys as Christmas gifts to needy children in the community in which the campaign is conducted.

“The first year HealthMarkets became involved with Toys for Tots we raised $1,317. Since that time, we have donated more than $1 million in toys and monetary contributions to the program both as a national sponsor and directly in the Dallas/Fort Worth area,” said Phillip J. Hildebrand, the president and CEO for HealthMarkets, Inc. “In 2008 we expanded our efforts to include our agent field force. HealthMarkets employees donated more than $82,000 in cash and toys, and our independent agent field force donated an additional $25,000 in cash to support this worthwhile organization.”

“Our 2008 campaign was extremely successful and, like they have for the last 22 years, HealthMarkets was a major contributor,” said retired Marine Maj. Gen. Bill Gossell, who serves as the civilian chairman/coordinator of the DFW Toys for Tots program. “We believe every kid deserves a Christmas and thanks to the generosity of HealthMarkets and the people of the metroplex, our program was able to provide toys to more than 115,000 children in the DFW area.”

HealthMarkets donations provided gifts that included:

* 300 bicycles with helmets
* 400 skateboards with helmets
* 400 each of: basketballs, soccer balls, footballs, plastic bat and ball Combo sets, and playground balls
* More than 4000 assorted toys

About HealthMarkets

HealthMarkets® is the brand name for products underwritten and issued by the insurance subsidiaries of HealthMarkets, Inc. — The Chesapeake Life Insurance Company®, Mid-West National Life Insurance Company of Tennesseesm and The MEGA Life and Health Insurance Companysm. Products provided under the HealthMarkets brand are designed to provide personalized protection to individuals, families, the self-employed and small businesses. For further information regarding products offered by the HealthMarkets’ Companies, visit www.healthmarkets.com. The administrative offices of HealthMarkets, Inc. and its underwriting companies are located in North Richland Hills, Texas. Products are marketed through independent agents in sales offices across the country. For more information about the HealthMarkets Companies visit www.healthmarketsinc.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.