PACIFICARE OF CALIFORNIA LAUNCHES NEW ALTERNATIVE MEDICINE BENEFIT, NEW COMBINATION CHIROPRACTIC AND ACUPUNCTURE BENEFIT

CYPRESS, CA (June 20, 2000)-- PacifiCare of California, the HMO subsidiary of PacifiCare Health Systems, Inc. (Nasdaq: PHSY), will begin offering new alternative medicine options to its California commercial members effective August 1, 2000. The new combination benefit, which includes chiropractic and acupuncture with traditional Chinese herbal supplements, will be offered to mid and large employer groups as a complementary benefit. PacifiCare is among the first health plans in the state to begin offering acupuncture.

PacifiCare has contracted with San Diego-based American Specialty Health Plans (ASHP) to administer and insure the new combination benefit. ASHP is a recognized leader in complementary medicine and PacifiCare has maintained a long-standing relationship with them to provide its chiropractic benefit. PacifiCare members will have direct access to more than 2,200 credentialed chiropractors and more than 700 credentialed acupuncturists throughout California.

"We are extremely excited about the new alternative benefit, said Michael Chiarodit, PacifiCare Director of Large Group Markets. "Consumer demand for effective and natural options in their health care choices has been increasing and the addition of these new options to our existing benefits will help better meet the needs of the today's marketplace."

Employers will have the option of selecting five new supplemental plans, with copayments ranging from $5-$15 and annual visit maximums ranging from 20-40 visits. Members will be able to use a combination of acupuncture and chiropractic services under the new benefits to meet the annual visit maximums. The cost of the new plans will vary depending on which plan is selected and the size of the employer group.

PacifiCare of California is one of the state's leading managed care organizations, serving approximately 2.4 million members in its commercial and Medicare risk health plans.