[Press Release]


Commitment to NY-Based Hospital Network
is One of Firm's Biggest Healthcare Contracts

New York - January 30, 2001 - Global management and IT consulting company Cap Gemini Ernst & Young U.S. LLC and Continuum Health Partners, Inc. today announced a seven-year, $350 million agreement, through which Cap Gemini Ernst & Young will provide full information technology outsourcing services for three member hospitals of New York-based Continuum Health Partners.

The agreement is one of the largest such contracts in Cap Gemini Ernst & Young's growing healthcare business unit since Cap Gemini acquired Ernst & Young LLP's consulting group last May. The scope of services reflects Cap Gemini Ernst & Young's strong commitment to healthcare – one of its largest industries – and will support Continuum's performance improvement strategy.

Through the agreement, Cap Gemini Ernst & Young will provide infrastructure operations (data center) services; network management; end-user support, including helpdesk support; applications development; and applications management to Beth Israel Medical Center, St. Luke's Roosevelt Hospital Center, and Long Island College Hospital. Services will be provided from Continuum's hospital-based facilities, as well as its Secaucus, New Jersey, data center. Continuum will transfer 275 personnel to the project.

"Our outsourcing agreement with Cap Gemini Ernst & Young caps a 20-year relationship with the consulting side of the firm," said Peter A. Kelly, president and CEO of Continuum Health Partners. "Cap Gemini Ernst & Young's deep knowledge and experience in the healthcare and IT industries will help us – as it has in the past – to deliver the highest level of healthcare services to our patients."

The agreement is part of Cap Gemini Ernst & Young's growing Global Operate business. A significant aspect of the agreement with the three member hospitals of Continuum is applications management service delivery, which includes development, maintenance and support.

"Cap Gemini Ernst & Young is the industry leader for applications management," said Paul Ruflin, vice president of Cap Gemini Ernst & Young's Health and Managed Care unit. "Given our commitment and leadership position in the healthcare industry, it is fitting that our relationship with Continuum Health Partners marks one of our company's largest outsourcing agreements to date. We welcome Continuum Health Partners to our roster of well-served Global Operate and applications management clients worldwide."

Among other recent client relationships, Cap Gemini Ernst & Young announced in November, 2000, its 10-year, billion-dollar outsourcing agreement to launch a joint venture that will deliver full information technology services to Ontario Power Generation - one of North America's largest energy utilities.

"Like most healthcare providers, Continuum has been challenged by industry changes," said Richard P. McGrail, vice president, Information Systems, for Continuum. "While some of the challenge derives from an overall tough business environment that puts pressure on operating margins, the big pressures loom in the information technology arena: limited resources for investment in IT projects; difficulties in recruiting and retaining IT talent; no value-enhancing benefits from increases in IT spending; and – thus far – very little standardization in IT delivery across hospital systems."

"Our goal for Continuum Health Partners as well as for our other clients worldwide, is to create a distinctly different model for services by combining our strengths in outsourcing with those of our consulting business," said Geoff Unwin, Cap Gemini Ernst & Young CEO. "The result is long-term, outcome-focused relationships driven by creativity, deep industry knowledge and strong process capabilities."

About Cap Gemini Ernst & Young
Cap Gemini Ernst & Young is one of the largest management and IT consulting firms in the world. The company offers management and IT consulting services, systems integration, and technology development, design and outsourcing capabilities on a global scale to help traditional businesses and "dot companies" continue to implement growth strategies and leverage technology in the new economy. The organization employs more than 58,000 people worldwide and reports global revenues of about 7.7 billion euros (1999 pro forma).

With more than 3,000 dedicated consultants and strong alliance partners engaged in healthcare projects across Europe, North America and Asia Pacific, Cap Gemini Ernst & Young has the ability to service specialized healthcare industry issues, such as HIPAA, and serves the business consulting and information technology needs of many of the world's largest players in the industry. More information about individual service lines, offices and research is available at www.cgey.com.

About Continuum Health Partners, Inc.
Continuum Health Partners, Inc., was formed in January, 1997, as a partnership of two venerable health care providers, Beth Israel Medical Center and St. Luke's-Roosevelt Hospital Center. Building upon the strengths of both institutions, the partners soon established a broad-based, integrated health services network extending throughout the New York metropolitan region. In May, 1998, the partnership was joined by a third distinguished institution, Long Island College Hospital, located in the Brooklyn Heights/Cobble Hill section of Brooklyn. Continuum continued to grow in June, 1999, with the addition of another outstanding institution with a 100-year tradition of excellent specialty care, the New York Eye and Ear Infirmary.

With an annual operating budget of $1.7 billion, Continuum delivers inpatient care through nearly 3,100 certified beds located in seven major hospital facilities in Manhattan and Brooklyn. Continuum providers also see patients in group and private practice settings and ambulatory centers in the five boroughs of New York and Westchester County.

All four Continuum partner institutions were established more than a century ago by civic-minded individuals with a shared commitment to improving health, and health care, in their communities. Today, participation in the Continuum partnership enables each member institution to better fulfill its traditional mission by making available an impressive array of resources for the provision of state-of-the-art and compassionate care. Continuum is superbly equipped to identify and respond to the health-related needs of the populations served, in a patient- and physician-friendly environment. For more information, visit www.wehealny.org.