Amerigroup Reports Q2 Net Income of $49.6 Million or $0.94 per Diluted Share, Including $0.43 per Diluted Share Positive Impact from Tax Adjustment

Updates 2009 EPS Guidance Range

VIRGINIA BEACH, Va. (July 31, 2009) – Amerigroup Corporation (NYSE: AGP) today announced that net income for the second quarter of 2009 was $49.6 million, or $0.94 per diluted share, versus a loss of $164.0 million, or $3.10 per diluted share, for the second quarter of 2008.

Second Quarter Highlights

• Membership increased 66,000 members, or 4.0%, to approximately 1.7 million at the end of the quarter from the first quarter of 2009. Risk membership increased 10.0% or 156,000 from the second quarter of 2008.
• Total revenues were $1.3 billion, a 5.0% increase over the first quarter of 2009 and a 15.6% increase over the second quarter of 2008.
• Health benefits expenses were 85.9% of premium revenues.
• Selling, general and administrative expenses were 7.5% of total revenues.
• The second quarter income tax expense reflects the impact of the tax adjustment of $0.43 per diluted share.
• Cash used in operations was $2.1 million for the three months ended June 30, 2009.
• Unregulated cash and investments were $253.8 million, as of June 30, 2009.
• Medical claims payable, as of June 30, 2009, totaled $563.0 million compared to $570.4 million, as of March 31, 2009.
• The Company is updating its 2009 annual guidance to $2.90 to $3.05 per diluted share.
• The Company repaid approximately $26.2 million of debt during the quarter and the debt to total capital ratio decreased to 20.8%, as of June 30, 2009, from 23.0%, as of March 31, 2009.
• The Company repurchased approximately 745,000 shares of its common stock during the second quarter for approximately $22.2 million.

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