Clear Choice Health Plans Settles Litigation

Business Wire, August 29, 2008

BEND, Ore. -- Clear Choice Health Plans, Inc. (OTCBB: CCHN) today announced it has concluded a settlement agreement that completely absolves the company against liabilities related to a lawsuit filed in 2007 by Priscilla Evans and Dale Evans in Deschutes County Oregon Circuit Court.

Pursuant to the terms of the settlement agreement, the plaintiff will receive $1.5 million. The lawsuit sought to recover damages of $20 million, plus attorneys' fees. The settlement was covered by insurance, with the company only being responsible for its deductible.

Clear Choice said that although it has always believed that the company had strong meritorious defenses, management concluded, in consultation with its insurance company, that it was in the best interests of the company, employees, customers and shareholders to settle this litigation and put the matter behind it. The settlement will have no material impact on the company's financial results.

About Clear Choice Health Plans

Clear Choice offers affordable health plans to meet the needs of employers, providers and consumers. The company provides health insurance, including Medicare Advantage plans, commercial plans, individual plans and administrative services to individuals and businesses throughout the region. The company also offers life, disability, dental, vision and voluntary benefits programs. Clear Choice is dedicated to the development of community-based health insurance plans. For information call 888-677-5852 or visit www.clearchoicehp.com.

Safe Harbor statement under the Private Securities Litigation Reform Act of 1995

Certain statements contained in this press release are forward-looking in nature and involve a number of risks and uncertainties. Such forward-looking statements, including, but not limited to, the impact of the settlement amount on the company's financial results, are within the meaning of that term in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Act of 1934, as amended. The words "believe," "estimate," "expect," "intend," "anticipate," "plan," "appears," "will," and similar expressions and variations thereof identify certain of such forward-looking statements, which speak only as of the dates on which they were made. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those indicated in the forward-looking statements as a result of various factors. Readers are cautioned not to place undue reliance on these forward-looking statements.