Priority Health Chooses Covansys to Implement Managed Care System Upgrade; Upgrade Moves Leading Managed Care Company Closer to Achieving HIPAA Compliance

Business Wire, March 12, 2002

Business/Technology Editors

FARMINGTON HILLS, Mich.--(BUSINESS WIRE)--March 12, 2002

Covansys Corporation (Nasdaq: CVNS), a global consulting and technology services company, announced today that it has been awarded a major IT outsourcing contract by Priority Health, one of Michigan's largest managed care companies.

The two-year agreement includes the conversion of Priority Health's current managed care applications. The implementation is designed to provide Priority Health with the flexibility to make rapid changes necessary in the competitive health care market, moving closer to HIPAA compliance standards. This project utilizes Covansys' unique onsite, off-site, offshore delivery capability to achieve rapid deployment, world-class quality and reduced costs.

"Priority Health considered a number of major consulting firms for this engagement, but ultimately selected Covansys because of our long and successful working relationship. Our six-year relationship with Covansys has shown us that they consistently deliver on time, on scope and within budget," said James Slubowski, vice president of Information Services for Priority Health. "We are confident that Covansys' offerings will continue to support our mission to provide families with excellent and affordable health care."

"Covansys has an unwavering commitment to developing efficient, cost-effective solutions for our current and prospective clients. Because of that commitment, we're willing to go to great lengths for our clients," said Bob Sundar, branch vice president of Covansys. "We are pleased that Priority Health shares Covansys' commitment to excellence, and that the relationship between our two companies continues to grow."

Covansys has extensive experience in the strategic outsourcing and integration services markets. They currently serve more than 500 clients, 50 of which are leveraging the company's offshore capabilities.

Covansys, a market leader in the healthcare and HIPAA consulting markets, was named among the nation's top 10 HIPAA consultants in Healthcare: Healthcare Business Drivers, Strategies and Management Issues, a September 2001 Gartner Group report. Covansys has supported numerous healthcare entities in conducting HIPAA awareness training and implementation, and meeting individual technological demands, including Blue Cross and Blue Shield of North Carolina, Blue Cross and Blue Shield of Arizona, CareFirst BlueCross BlueShield and the State of California DHHS. The company is a premier resource for healthcare industry leaders such as Henry Ford Health Systems.

Priority Health is the largest managed care company in Western Michigan with over 340,000 members and more than 5,000 employers throughout Western and Northern Michigan. Its 27-county service area includes a network of 2,200 physicians and 27 hospitals. The health plan enjoys "Excellent" accreditation, the highest level awarded to health plans nationally, from the National Committee for Quality Assurance.

About Covansys Corporation

Headquartered in Michigan, Covansys Corporation (Nasdaq: CVNS) is a global consulting and technology services company specializing in industry-specific solutions, strategic outsourcing and integration services. Our clients gain competitive advantage by leveraging our unique on-site, offsite, offshore delivery capability to achieve rapid deployment, world-class quality and reduced costs. Since being founded in1985, Covansys has successfully delivered an array of innovative and cost-effective business and technical solutions to leaders in the private and public sector. Our 4,400 employees offer a professional heritage spanning Old World legacy systems and the New Economy's leading-edge technologies. Covansys has 30 locations, including six development centers worldwide. Covansys offers one of the largest offshore capabilities among U.S.-based technology services providers, and two of the company's three wholly owned development centers in India are SEI CMM(R) Level 5 certified. Covansys was named one of the top 500 solution providers in North America in 2001 by VARBusiness magazine. Visit our web site: www.covansys.com.