Health Net, Inc.

1. Health Net, Inc. Jay M. Gellert President and Chief Executive Officer February 6, 2001 UBS Warburg Global Healthcare Services Conference

2. 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.

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

4. In the Last 24 Months, We... • Rationalized and Focused Businesses • Divested Non-Core Businesses • Priced Products Appropriately • Improved Our Balance Sheet • Debt Down Substantially on TRICARE Settlement • Met Earnings Expectations Over the Last Seven Quarters • Dramatically Improved Cash Flow, and • Prepared for Solid Earnings Growth in ‘01

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

6. Performance Highlights • $.36 EPS in Q3 Exceeded Expectations • Normalized Cash Flow of $144 Million Above Target • Debt Now Below $700 Million • Was $950 Million at Q3 End • Was $1.4 Billion at End of Q3 ‘98 • Debt-to-Capital to 39 Percent Pro Forma • Claims Payable Up $85 Million Sequentially • Stockholders’ Equity Exceeds $1 Billion

7. Finishing the Turnaround • Show Profitable Growth • Meet Expectations in Q4 • Complete Florida Transaction • Closely Monitor Arizona Corrective Actions • Significant Re-pricing and Health Care Cost Containment Initiatives

8. Key Priorities for ‘01 • Profitable Growth • Further SG&A Efficiencies • MCR Stability • Favorable Outlook for Improved Capital Structure • Term Significant Portion of Debt in ‘01 • Implement Infrastructure/E-Business Projects Successfully • TRICARE Consistency

9. 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

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

11. 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 Below 30 Percent by 2003 • Consistent ROE of 20% by 2003

12. 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