Amerigroup Contributes Nearly $500 Million Annually to Hampton Roads Economy, Study Finds

Company Among Region’s Top 1% of Private Employers in Economic Impact

VIRGINIA BEACH, Va. (March 25, 2009) – Amerigroup Corporation (NYSE: AGP) employs more than 1,700 people in Virginia Beach and contributes nearly $500 million a year into the Hampton Roads regional economy – making the Company responsible for a significant impact on the entire region’s economic activity, according to a new study of the Company’s economic impact that was released today.

Dating back to the Company’s founding in 1994, Amerigroup has contributed more than $3.2 billion to the local economy that surrounds its southeastern Virginia headquarters, the report concludes.

A survey conducted by Dr. James V. Koch, Board of Visitors Professor of Economics at Old Dominion University, found that Amerigroup is the 17th largest employer in Hampton Roads and among the top five creators of jobs in recent years, including a 17% increase in local jobs from the end of 2006 to the end of 2008. The study also determined that Amerigroup’s associates are deeply involved in community affairs, contributing more than 9,500 hours of volunteer time to the area’s charitable organizations.

“Both Hampton Roads and Amerigroup share in the benefits of a strong, growing corporation that plays a pivotal role in keeping our economy and our community moving forward in these challenging times,” said James G. Carlson, Chairman and Chief Executive Officer of Amerigroup. “Over the past 15 years, Amerigroup has grown from a startup to a national resource trusted to deliver healthcare and solutions to those who need it most, and the talented people of Hampton Roads have played a crucial part in building our organization.

“Amerigroup is proud to be based here in Hampton Roads. On both a personal and professional basis, we take our commitment to the local economy and the community very seriously.”

The Hampton Roads region includes the cities that stretch from Williamsburg through southeastern Virginia. Hampton Roads is ranked the 31st largest Metropolitan Statistical Area (MSA) in the United States. Headquartered in Virginia Beach within Hampton Roads, Amerigroup ranked #555 on the 2008 Fortune 1000 listing of the largest firms in the United States and is the eighth largest insurance/healthcare firm in the United States.

“We are pleased to host strong companies like Amerigroup, whose employees play an active, significant role not only in our economy but also within our community,” said Virginia Beach Mayor William D. Sessoms. “Amerigroup offers a terrific example of the type of corporate neighbor that is a true asset to our city and our region.”

Amerigroup associates are inherently very active in the community through their involvement with the March of Dimes, Habitat for Humanity, ForKids, The Up Center and other organizations through Amerigroup’s REALCaring volunteer program, making a difference both in the office and in the community. In 2008, for example, Amerigroup Corporation employees provided an estimated 9,546 hours of time to charitable endeavors within the region. In turn, the Company has been recognized in recent months as:

• “Best Places to Work in Healthcare,” Modern Healthcare magazine (top health insurer)
• #1 Fundraising Team for March of Dimes for Virginia ($100,000+
• Named Good Corporate Neighbor, Large Size Company, “Corporate Volunteer Excellence Awards,” Virginia Business magazine and Volunteer Hampton Roads
• Finalist, “Torchbearer” Corporate Social Responsibility Award, Virginia Chamber of Commerce
• Finalist, Best Overall Corporate Social Responsibility Program, Companies Under 25,000 Employees, PRNews Magazine.

The study of Amerigroup’s impact on the Hampton Roads economy also found that:

• Amerigroup’s total impact on the region’s economy, including direct contributions and spin-off effects, is about $500 million a year.
• Amerigroup’s direct economic activity in Hampton Roads totals more than $249 million, an increase of 25% from 2005.
• Amerigroup employs about 4,100 nationwide, of whom more than 1,730 are based in Virginia Beach.

According to the conclusion of the report:

• “Measured by virtually any reasonable standard one might adopt, Amerigroup in Hampton Roads has become a very significant economic force within the region. … [Amerigroup ranks] among the top 1% of all private employers in the region in terms of its economic impact.
• “Hence, it is easy to conclude that Amerigroup is a major economic engine within Hampton Roads. It is one of the region’s largest employers, and it compensates its employees well above the regional average. Hampton Roads would regard itself as fortunate if it were able to host similar firms.”

For a full copy of the report, please contact Amerigroup’s Corporate Communications department at (757) 321-3592.

About Amerigroup Corporation

Amerigroup Corporation, headquartered in Virginia Beach, Virginia, improves healthcare access and quality for the financially vulnerable, seniors and people with disabilities by developing innovative managed health services for the public sector. Through its subsidiaries, Amerigroup Corporation serves approximately 1.6 million people in Florida, Georgia, Maryland, Nevada, New Jersey, New Mexico, New York, Ohio, Tennessee, Texas and Virginia.