PacifiCare Health Systems Releases 2005 Earnings Guidance

Press Release



CYPRESS, Calif., Jan. 11 /PRNewswire-FirstCall/ --



PacifiCare Health Systems, Inc. (NYSE: PHS) today released 2005 earnings guidance included in

the table below in connection with a presentation to be given at the 23rd

Annual JP Morgan Health Care Conference at the Westin St. Francis hotel in San

Francisco.







* Commercial mbrshp. growth: * EBITDA: $745-770 million

3.0%-3.5%

* Medicare Advantage ending mbrs: * CFFO: $500-525 million

743K

* Revenue increase: 15% * Free Cash Flow: $320-335 million

* MLRs * SG&A ratio: 12.5%-13%

* Consolidated = 84%-85% * Depreciation/Amortization:

$85 million

* Private Commercial = 81%-82% * Capital expenditures:

$120-$125 million

* Private Senior = 73%-74% * Net Income: $360-$375 million

* Government Senior = 87.5%-88.5% * Average outstanding shares:

98.8 million

* Gross Margins * EPS: $3.64-$3.80

* Commercial = 18%-19% * Q1 = $0.85-$0.89

* Senior = 11.5%-12.5% * Tax rate: 39.1%

* Specialty & Other = 36%-37%







PacifiCare's Chairman and CEO, Howard Phanstiel, is scheduled to give the

presentation at 5:30 Eastern Time. Investors, analysts and other interested

parties will be able to access a webcast of the live presentation through

PacifiCare's website at http://www.pacificare.com. Click on About PacifiCare,

Investor Relations, and then Conference Calls, to access the link.