Health Net, Inc Annual Meeting of Stockholders Jay M. Gellert President and Chief Executive Officer May 3, 2001

Cautionary Statement The matters discussed in this release contain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended, that involve risks and uncertainties. All statements other than statements of historical information provided herein may be deemed to be forward- looking statements. Without limiting the foregoing, the words “believes,” “anticipates,” “plans,” “expects” and similar expressions are intended to identify forward-looking statements. Factors that could cause actual results to differ materially from those reflected in the forward-looking statements include, but are not limited to, the risks discussed in the “Risk Factors” and “Cautionary Statements” sections included within the Company's most recent Annual Report on Form 10-K filed with the SEC and the risks discussed in the Company's other filings with the SEC. Readers are cautioned not to place undue reliance on these forward- looking statements, which reflect management's analysis, judgment, belief or expectation only as of the date hereof. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.

Overview  Where We’ve Been  Where We Are Today and...  Where We’re Going  Where We’ve Been  Where We Are Today and...  Where We’re Going

In the Last 24 Months, We...  Rationalized and Focused Businesses  Improved Our Balance Sheet  Met Earnings Expectations Over the Last Eight Quarters  Dramatically Improved Cash Flow, and  Prepared for Solid Earnings Growth in ‘01  Changed Our Name -- Health Net is a Growth Company  Rationalized and Focused Businesses  Improved Our Balance Sheet  Met Earnings Expectations Over the Last Eight Quarters  Dramatically Improved Cash Flow, and  Prepared for Solid Earnings Growth in ‘01  Changed Our Name -- Health Net is a Growth Company

Our Accomplishments are Noticed  Stock Up More than 100% Since Last AM  Barron’s, Fortune Others Cite Strong Stockholder Returns  S&P and Moody’s Make Health Net Investment Grade  NCQA Rates Our Plans Best in Customer Satisfaction  Stock Up More than 100% Since Last AM  Barron’s, Fortune Others Cite Strong Stockholder Returns  S&P and Moody’s Make Health Net Investment Grade  NCQA Rates Our Plans Best in Customer Satisfaction

Operating Goals  Perform Strongly in California and the Northeast  Grow Profitable Enrollment  Keep Government Business Solid  Turn Arizona Around  Complete Florida Sale  Position for Consistent Annual EPS Growth of 15% to 20%  Perform Strongly in California and the Northeast  Grow Profitable Enrollment  Keep Government Business Solid  Turn Arizona Around  Complete Florida Sale  Position for Consistent Annual EPS Growth of 15% to 20%

Q1 Performance Highlights  $.34 EPS Met Expectations  302,000 New Health Plan Enrollees  Health Plan Revenues Up 16 Percent  Cash Flow of $316 Million  Debt Now Around $650 Million  Was $766 Million at Year End  Was $1.4 Billion at End of Q3 ‘98  Debt-to-Capital to 38 Percent Pro Forma  SG&A Down by 90 Basis Points  $.34 EPS Met Expectations  302,000 New Health Plan Enrollees  Health Plan Revenues Up 16 Percent  Cash Flow of $316 Million  Debt Now Around $650 Million  Was $766 Million at Year End  Was $1.4 Billion at End of Q3 ‘98  Debt-to-Capital to 38 Percent Pro Forma  SG&A Down by 90 Basis Points

Finishing the Turnaround in ‘01  Complete Florida Transaction  Closely Monitor Arizona Corrective Actions  Significant Re-pricing and Health Care Cost Containment Initiatives  Complete Florida Transaction  Closely Monitor Arizona Corrective Actions  Significant Re-pricing and Health Care Cost Containment Initiatives

Key Priorities for ‘01  Profitable Growth  Substantial Cash Flow Improvement -- $570 to $600 Million  Further SG&A Efficiencies  MCR Stability  Implement Infrastructure/E-Business Projects Successfully  TRICARE Consistency  Profitable Growth  Substantial Cash Flow Improvement -- $570 to $600 Million  Further SG&A Efficiencies  MCR Stability  Implement Infrastructure/E-Business Projects Successfully  TRICARE Consistency

It’s All About the Basics  A Future of Consistent Growth with Improving Margins  Broader Range of Products  Nine New PPO Products in California  Groundbreaking Latino Product  A Future of Consistent Growth with Improving Margins  Broader Range of Products  Nine New PPO Products in California  Groundbreaking Latino Product

Role of Technology  A Strong Focus on Customer Service  Questium  Using Technology to Significantly Improve Processes  Connectivity  Enrollment/Billing  Infrastructure  A Strong Focus on Customer Service  Questium  Using Technology to Significantly Improve Processes  Connectivity  Enrollment/Billing  Infrastructure

General Long-Term Targets  Double-Digit Health Plan Revenue Growth  Pricing and Enrollment Growth  Flat to Lower Health Plan MCR  SG&A Down by at Least 100 Bps over 3-Year Period  Debt to Total Capital at or Below 30 Percent by 2003  Consistent ROE of 20% by 2003  Double-Digit Health Plan Revenue Growth  Pricing and Enrollment Growth  Flat to Lower Health Plan MCR  SG&A Down by at Least 100 Bps over 3-Year Period  Debt to Total Capital at or Below 30 Percent by 2003  Consistent ROE of 20% by 2003

Our Strengths  Open Access Product Expertise  Strong Positions in the Two Largest Markets  Sustaining Provider Relationships as Reimbursement Model Shifts Continue  Open, Experienced, Change-Oriented Management Team  Willingness to Exploit Technology and Change Processes and Structures  Open Access Product Expertise  Strong Positions in the Two Largest Markets  Sustaining Provider Relationships as Reimbursement Model Shifts Continue  Open, Experienced, Change-Oriented Management Team  Willingness to Exploit Technology and Change Processes and Structures