Louisville, Ky. (October 25, 2004) - SHPS, Inc., an integrated health management provider, announced today an agreement with JPMorgan Chase Bank, a global leader in the development of electronic payments solutions, to offer a full-featured health savings account (HSA) that leverages the unique strengths of the two organizations.

Under the agreement, SHPS will provide HSA administrative services including enrollment, eligibility, reporting, web, interactive voice response system and call center support. JPMorgan will provide debit card and transaction services, as well as a Chase custodial account. In the future, investment options for consumers will be offered.

"The partnership brings together two industry leaders to create a consumer-focused health care savings vehicle that meets the needs of employers and consumers," said Dave Nelson, SHPS president and CEO. "SHPS' unsurpassed experience with participant services, spending accounts and benefit plan administration, coupled with Chase's strong consumer banking and JPMorgan's financial management expertise, creates a unique HSA offering that far exceeds what either company could provide independently."

HSAs are a new type of health care spending account - authorized by the Medicare Prescription Drug Improvement and Modernization Act of 2003 - that allow participants to set aside and invest pre-tax funds for health care expenses. Any funds in the account are fully owned by the participant and unused balances roll over from year-to-year, accruing interest. The SHPS HSA will be available this fall for employer plans effective Jan. 1, 2005 as either a stand-alone product or in conjunction with a limited FSA that provides reimbursement for dental, vision and preventative care expenses.

"HSAs are gaining significant momentum in the industry," said John Prince, senior vice president, JPMorgan Treasury Services. "However, employers must be careful to choose an HSA provider who can offer the full range of consumer and employer-facing services that these accounts require, today and into the future. This includes providing ongoing HSA phone support through a knowledgeable phone center staff, as well as providing investment support that meets the varying needs of participants with differing investment risk profiles."

Features of the SHPS HSA include:

• For employers, the SHPS HSA can be easily integrated into their other spending account offerings such as a limited FSA.
  
  
• The ability for participants to retain accumulated funds in the HSA as they transition between employers.
  
  
• An interest-bearing, FDIC-insured savings account as well as a range of investment options to accommodate the different risk tolerances of participants.
  
  
• A password-protected VISA debit card and optional checkbook that allow participants to access account funds virtually anywhere in the world.

The introduction of the SHPS HSA is a key initiative in the company's new integrated health management strategy. Integrated health management unites care management, spending account administration, benefit plan administration and insurance carrier management onto one, unified platform.

"With the recent IRS ruling that care and disease management are permitted within high-deductible health plans, it is the ideal time for employers to implement benefit plans that put a stop to the double-digit increases in health care costs by providing employees with decision-support tools to help them make informed decisions about their health care," said Nelson. "As an industry leader in both the care management and spending account industries, SHPS is uniquely positioned to provide consumers and employers with the necessary health management resources to complement any spending account plan."

SHPS is the largest, privately held spending account administrator in the United States, with products including flexible spending accounts, health reimbursement arrangements and health savings accounts. The company employs more than 410 registered nurses in locations in Scottsdale, Ariz., Seattle and Louisville, Ky.

About JPMorgan Chase & Co.
JPMorgan Treasury Services is a unit of JPMorgan Chase Bank, a subsidiary of JPMorgan Chase & Co. JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm with assets of $1.1 trillion and operations in more than 50 countries. The firm is a leader in investment banking, financial services for consumers and businesses, financial transaction processing, asset and wealth management, and private equity. A component of the Dow Jones Industrial Average, JPMorgan Chase & Co. has its corporate headquarters in New York and its U.S. retail financial services and commercial banking headquarters in Chicago. Under the JPMorgan, Chase and Bank One brands, the firm serves millions of consumers in the United States and many of the world's most prominent corporate, institutional and government clients. Information about the firm is available on the Internet at www.jpmorganchase.com.

About SHPS | Carewise Health
SHPS is a leading, independent provider of integrated health solutions that improve personal health and reduce spending. By integrating traditional health management and benefits administration services, SHPS delivers people-centric solutions that empower individuals to make wise healthcare choices. It serves large and mid-sized employers, government agencies, and third-party administrators through the company’s Carewise Health, Landacorp, and SHPS brands. Visit www.carewisehealth.com.

For More Information
LeAnn Ross
Director of Marketing
leann.ross@shps.com

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