BOCA RATON, FL -- (MARKET WIRE) -- 10/16/2006 -- Apptical Corp., a leading provider of Tele-Underwriting solutions to the insurance industry, today announced it is now conducting Telephone Interviews/Telephone Applications with integrated prescription histories for The Chesapeake Life Insurance Company, a HealthMarkets(SM) Company. Prescription history information is seamlessly delivered to Apptical interviewers in real time during a live interview with the proposed insured. Apptical SoundDecisions software guides Apptical interviewers to ask the proposed insured about prescriptions in an effort to identify medical conditions that might otherwise have been unknown.

Apptical SoundDecisions enables Chesapeake agents to sell policies and conduct point of sale telephone verification interviews during normal and extended business hours. During the interview process with the proposed insured, Apptical's SoundDecisions software interfaces with Milliman IntelliScript's prescription history software to collect prescription information for the applicant. The prescription history is collected only upon prior authorization from the applicant. Apptical presents the prescription history to the interviewer in a simple and easy to read format conducive to a telephone interview. The interviewer simply confirms the condition for which each prescription is used. Immediately following the interview, Chesapeake underwriters can access Apptical SoundDecisions via the internet to listen to the interview, view results, print results and import XML data. Apptical SoundDecisions is a complete turnkey solution including recorded calls, Caller ID information, direct access to prescription histories and interview results, all of which are instantly available to the underwriter.

"Apptical SoundDecisions provides many benefits, including hold time reporting, integrated prescription histories, Tele-Applications, and on-line audio. We consider it an integral tool that adds protective value to our underwriting and new business process," said John Sartore, Vice President and COO of HealthMarkets Life Insurance Operations. "We aligned with Apptical for this process because of their commitments to technology and minimizing hold times."

Prescription histories are presented to the Apptical interviewer in a question/answer format to be confirmed by the applicant. Chesapeake prioritized prescription drug groups to be displayed to the interviewer for confirmation with the proposed insured. Drugs can be prioritized by drug group, individual drug, prescription fill date and other parameters. This prioritization process is the key to simplifying the prescription history for the interviewer so the interview process runs smoothly. This unique prescription presentation process also makes it possible for trained interviewers to conduct interviews where experienced underwriters may have been needed in the past. Apptical includes a link directly to the Milliman IntelliScript website for each applicant such that Chesapeake underwriters can review prescription history details at their discretion.

"The integrated prescription history process is powerful because it delivers the drug information to my interviewers in a simple readable format and allows them to identify and confirm medical conditions quickly and efficiently. This poses a unique opportunity for Apptical to add significant protective value to its insurance company clients," said Anna Gomez, Telephonic Services Supervisor at Apptical. "This new prescription information increases the value of Apptical's services because we can quickly identify and confirm medical conditions while we're speaking to the applicant."

Chesapeake underwriters can click a link in a SoundDecisions report or on the SoundDecisions web application to access IntelliScript's prescription history details The Milliman IntelliScript web application presents detailed prescription information including eligibility periods where no prescriptions may have been filled, prescribing physician information and other valuable prescription-related information.

About Apptical

Founded in 1988, Apptical has consistently delivered high quality audio based, image based and conventional business process solutions to the financial industry. Apptical is the leading company to offer a browser based solution to instantly listen to completed telephone interviews securely from a remote location. Apptical SoundDecisions is a scalable Windows and browser based telephone interview platform that supports integrated prescription histories, audio capture, electronic signatures, Tele-Applications, custom questionnaires, drilldown, question branching, data storage, instant rendering, data mining, multi-lingual scripts, condition, treatment, financial and provider schedules and XML Web Services. SoundDecisions is available as a turnkey solution from Apptical or as a licensed software solution for insurance company in-house use. Apptical is based in Boca Raton, FL. Visit Apptical on the Web at www.apptical.com.

About Milliman, Inc.

Milliman serves the full spectrum of business, financial, government and union organizations in the United States and abroad. The firm offers consulting services in healthcare, employee benefits, life insurance / financial services, and property and casualty insurance.

Milliman IntelliScript accesses prescription drug histories from pharmacy benefit managers and other data suppliers based on an applicant's prior authorization. Prescription profiles are delivered within seconds directly to underwriters' desktops to uncover critical medical information. IntelliScript includes a color-coded timeline of the applicant's prescription drug history, dosage information, prescribing physician information and medical indications for each prescription. IntelliScript tailors solutions for its Client's underwriting guidelines and risk preferences. More information about Milliman IntelliScript can be found on the web at www.rxhistories.com.

About Chesapeake Life Insurance Company, a HealthMarkets Company

The Chesapeake Life Insurance Company is an Oklahoma-domiciled life and health insurance company and an indirect wholly-owned subsidiary of HealthMarkets, Inc. Chesapeake offers life and health insurance policies in all states except New Jersey, New York and Vermont.

About HealthMarkets

HealthMarkets, headquartered in North Richland Hills, Texas, is a provider of health and life insurance products to individuals, families, students, the self-employed and small businesses. HealthMarkets offers products and services through its subsidiaries: The MEGA Life and Health Insurance Company, Mid-West National Life Insurance Company of Tennessee and The Chesapeake Life Insurance Company. The company's offerings include individual and self employed health insurance, small employer group health insurance, student health insurance, life insurance and reinsurance. Through its Consumer Guided Health Insurance plans, HealthMarkets seeks to provide affordable and accessible health coverage to individuals and small businesses. HealthMarkets is owned by of a group of private equity investors, including The Blackstone Group, Goldman Sachs Capital Partners and DLJ Merchant Banking Partners, members of management and the company's dedicated, licensed agents through the company's agent stock accumulation plans. For more information, visit www.healthmarkets.com.

SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995:

Some of the matters discussed in this news release may contain forward-looking statements that are subject to certain risks, uncertainties and assumptions. Such forward-looking statements are intended to be identified in this document by the words "anticipate," "believe," "estimate," "expect," "intend," "objective," "plan," "possible," "potential" and similar expressions. Actual results may vary materially from those included in the forward-looking statements. Factors that could cause actual results to differ materially from those included in the forward-looking statements include, but are not limited to, general economic conditions; the continued ability of HealthMarkets (the "Company") to compete for customers and insureds in an industry where many of its competitors may have greater market share and/or greater financial resources; the Company's ability to accurately estimate medical claims and control costs; changes in government regulation that could increase the costs of compliance or cause the Company to discontinue marketing its products in certain states; the Company's failure to comply with new or existing government regulation that could subject it to significant fines and penalties; changes in the relationship between the Company and the membership associations and/or changes in the laws and regulations governing so-called "association group" insurance (particularly changes that would subject the issuance of policies to prior premium rate approval and/or require the issuance of policies on a "guaranteed issue" basis); significant liabilities and costs associated with litigation; failure of the Company's information systems to provide timely and accurate information; negative publicity regarding the Company's business practices and/or regarding the health insurance industry in general; the Company's inability to enter into or maintain satisfactory relationships with networks of hospitals, physicians, dentists, pharmacies and other health care providers; failure of the Company's regulated insurance company subsidiaries to maintain their current ratings by A.M. Best Company, Fitch and/or Standard & Poor's; failure to obtain court approval of the proposed settlements; and the other risk factors set forth in the reports filed by the Company with the Securities and Exchange Commission.