Amerigroup Reports Q1 Net Income of $36.9 Million or $0.69 per Diluted Share; Full-Year 2009 Guidance Range Increased to $2.70 - $2.85 per Diluted Share

VIRGINIA BEACH, Va. (May 1, 2009) – Amerigroup Corporation (NYSE: AGP) today announced that its net income for the first quarter of 2009 increased 9.7% to $36.9 million, or $0.69 per diluted share, versus net income of $33.6 million, or $0.62 per diluted share, for the first quarter of 2008.

First Quarter Highlights include:

• Membership increased 4.9% to approximately 1.7 million at the end of the quarter versus the fourth quarter of 2008.
• Total revenues were $1.2 billion; a 6.9% increase over the fourth quarter of 2008.
• Health benefits ratio was 83.7% of premium revenues.
• Selling, general and administrative expense ratio was 9.0% of total revenues.
• Cash flow from operations was $36.1 million for the three months ended March 31, 2009.
• Unregulated cash and investments of $279.7 million as of March 31, 2009.
• Medical claims payable as of March 31, 2009 totaled $570.4 million compared to $536.1 million as of December 31, 2008.
• The Company increased its 2009 annual guidance to $2.70 - $2.85 per diluted share, from the previous range of $2.50 - $2.65.
• On February 1, 2009, the Company began serving approximately 49,000 Medicaid and Children’s Health Insurance Program (CHIP) members in Nevada.
• On March 1, 2009, the Company closed the sale of the assets of its South Carolina health plan.
• On April 1, 2009, the Company began the final phase of New Mexico’s Coordinated Long-Term Services (CoLTS) program rollout.
• The Company repurchased approximately 258,000 shares of its common stock during the first quarter for approximately $6.4 million.

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