New York State Court of Appeals Dismisses Consumers' Union Lawsuit

WellChoice, Inc. (NYSE: WC), the parent company of
Empire Blue Cross Blue Shield, announced today that the New York State
Court of Appeals, New York's highest court, concluded that the
plaintiffs' allegations in Consumers' Union of the U.S., et. al. vs.
The State of New York and Empire HealthChoice, Inc., (d/b/a Empire
Blue Cross Blue Shield) are legally insufficient to support any cause
of action. Accordingly the Court granted the defendants' motion to
dismiss the amended complaint alleging that the Conversion Legislation
violated the State Constitution on the ground that it is a local law
granting an exclusive privilege, immunity and/or franchise. The Court
also affirmed the Appellate Division's order affirming the dismissal
of all other causes of action.
   "We are pleased with the Court's decision today," said Michael A.
Stocker, MD, president and CEO of WellChoice. "This resolves all legal
issues pertaining to Empire's conversion, including the appropriate
use of the proceeds."
   For a full discussion of the Consumers' Union litigation, please
refer to WellChoice's Annual Report on Form 10-K for the year ended
December 31, 2004, Quarterly Report on Form 10-Q for the three months
ended March 31, 2005 and the Form 8-K to be filed with the Securities
and Exchange Commission.

   About WellChoice

   WellChoice, Inc. is the parent company of the largest health
insurer in the State of New York based on PPO and HMO membership.
WellChoice, through its Empire Blue Cross Blue Shield subsidiaries,
has the exclusive right to use the Blue Cross and Blue Shield names
and marks in 10 downstate New York counties and one or both of these
names and marks in selected counties in upstate New York. WellChoice
offers a broad portfolio of products, including managed care and
traditional indemnity products, and has a broad customer base
including large group, middle-market and small group, individual, and
national accounts. Additional information on WellChoice can be found
at www.wellchoice.com.

   Cautionary Statement

   Some of the information contained in this press release is
forward-looking, including statements relating to future financial or
business results. Forward-looking information is based on management's
estimates, assumptions and projections and is subject to significant
uncertainties and other factors, many of which are beyond the
company's control. Important risk factors could cause future results
to differ materially from those estimated by management. Those risks
and uncertainties include but are not limited to: our ability to
accurately predict health care costs and to manage those costs through
underwriting criteria, quality initiatives and medical management;
product design and negotiation of favorable provider reimbursement
rates; our ability to maintain or increase our premium rates; possible
reductions in enrollment in our products or changes in membership
including the loss of either the New York City or the New York State
account; the regional concentration of our business in the New York
metropolitan area and the effects of economic downturns in that region
or generally; future bio-terrorist activity or other potential public
health epidemics; the impact of health care reform and other
regulatory matters; the outcome of litigation. For a more detailed
discussion of these and other important factors that may materially
affect WellChoice, please see WellChoice's filings with the Securities
and Exchange Commission, including the discussion of risk factors and
historical results of operations and financial condition in its Annual
Report on Form 10-K for the year ended December 31, 2004 and its
Quarterly Report on Form 10-Q for the three months ended March 31,
2005.