Eastern Time / 1:00 p. A smokefree U.

Federal Government Once Again Falters In Protecting Americans

The United States once again received poor grades for its tobacco
prevention efforts .

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S.lungusa. The American Lung Association funds vital research on
the causes of and treatments for lung disease.

Research or Health Conferences on Tobacco, Smoking, Tobacco Policy, Tobacco Control, Cessation , and so on.

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A replay and full transcript of
the call will be available at www. Almost eight years after the state tobacco
settlement, known as the Master Settlement Agreement, only six states --
Arkansas, Colorado, Delaware, Maine, Mississippi and Wyoming -- have
sustained the commitment of significantly funding tobacco prevention and
cessation programs.

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This call is being webcast and can be accessed at Health Net,
Inc. Going smokefree will
result in healthier people , reduced health care costs and thousands of
lives saved. The Kentucky
increase was the first cigarette tax increase in 35 years. Bipartisan legislation to authorize Food and Drug
Administration (FDA) authority to regulate tobacco products continues to
languish in Congress.

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Higher taxes make cigarettes more expensive, which deters
kids from starting to smoke and motivates adults to quit. In the first six
months since Oklahoma's historic 80-cent tax increase, 30,000 Oklahomans
have quit smoking.

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(NYSE:HNT) will hold its 2005 Annual Meeting of Stockholders on
Thursday , May 12, 2005, at approximately 1:00 p.'s Web site at www.healthnet.healthnet. "When we first released this report card four years ago,
there were only two states that had smokefree public places and workplaces
including restaurants and bars -- California and Delaware," said Kirkwood. "The result will be lives saved from the death
and disease caused by tobacco use and addiction.

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Business Editors

LOS ANGELES----Health Net, Inc.
Today, the American Lung Association kicked
off its Smokefree Air 2010 Challenge calling on state and local
policymakers to strengthen smokefree air laws to protect all citizens from
the dangers of secondhand smoke."

The Challenge's kickoff is in conjunction with the release of its 4th
annual American Lung Association State of Tobacco Control Report Card.

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is among the nation's largest publicly traded
managed health care companies.
For more information on Health Net, Inc., please visit the
company's Web site at www. "Every American deserves smokefree
air now. "It's a public health disgrace that so many states have
redirected funding away from effective tobacco prevention programs," said
Cassandra Welch, Director of National Advocacy at the American Lung
Association and author of this annual report.

The dramatic increase in state cigarette taxes has motivated thousands of
smokers to quit.

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Its mission is to help people be
healthy, secure and comfortable. is achievable.

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Lung
disease death rates continue to increase while other leading causes of
death have declined.

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Eastern Time (10:00
a.0820, code 4971394. Health Net's subsidiaries also offer managed health care
products related to behavioral health and prescription drugs, and
offer managed health care product coordination for multi-region
employers and administrative services for medical groups and
self-funded benefits programs. "Smokefree air laws are an overwhelming
success that the public has embraced," said John L.

Thirty-six states, the District of Columbia and Puerto Rico received an "F"
for program funding.. Kentucky and North Carolina,
both tobacco -growing states, raised their cigarette tax. In New York City
there has been a 15 percent decline over two years.org.

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"From 2002 to 2005, seven more states became smokefree states -- that 's
incredible progress.

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Health Net, Inc. With the generous support of
the public, the American Lung Association is "Improving life, one breath at
a time.

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m.m. Pacific
time) through May 16, 2005 (12:00 Midnight Eastern time) by dialing
719.
The report card shows the most significant progress in the area of
smokefree air. A
study published in the American Journal of Public Health concluded that if
states spend just the minimum amount recommended by the Centers for Disease
Control (CDC), youth smoking nationally would be 3 to 14 percent lower.

The Report Card

The American Lung Association State of Tobacco Control report card grades
each state and the federal government on key tobacco control policies
including cessation, regulation of tobacco products, ratification of the
tobacco treaty, cigarette taxes, smokefree air, tobacco prevention programs
and youth access to tobacco products." For more information about the American Lung Association or to
support the work it does, call 1-800-LUNG-USA (1-800-586-4872) or log on to
www.

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Pacific Time)."

States Continue to Cut Tobacco Prevention Programs

Despite strong evidence showing that tobacco prevention programs save lives
and money, states continued to underfund tobacco prevention programs. The
report can be found online at www.

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Kirkwood, President and
CEO of the American Lung Association.S."

Maine Is 2005 Valedictorian

In 2005, Maine became the first state to receive an "A" in each of the four
categories: tobacco prevention spending, cigarette tax, smokefree air and
youth access .
Nineteen states, the District of Columbia and Puerto Rico have a tax of $1
or more. Five states -- Maine, Michigan, New Jersey, Rhode Island and
Washington -- are at or over $2 per pack.

About the American Lung Association

Beginning our second century, the American Lung Association is the leading
organization working to prevent lung disease and promote lung health.

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A recording of the call can be
heard from May 12, 2005 (4:00 p.

The Good News Is.

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Health Net Inc. Announces 2005 Annual Meeting of Stockholders Conference Call and Webcast Thursday May 12 2005 at 1:00 p.m . ET 10:00 a.m. PT

To join the conference call, dial 719. The company's HMO, POS, insured PPO
and government contracts subsidiaries provide health benefits to
approximately 6. Unfortunately , it continues to fail to fund
cessation at the level recommended by its own experts.

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2637, and give the
operator the confirmation code 4971394.healthnet.

PRESS RELEASE American Lung Association Challenges States to Go Smokefree by 2010

. The laws are graded against
recognized criteria and translates each state's relative progress into a
letter grade comprised of A, B, C, D or F.org.

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A bright spot was the federal government's decision
to have Medicare cover smoking and tobacco use cessation counseling for
most of its beneficiaries.lungusa.

mobilisation sessions

com. We are challenging policymakers from governor to councilmember to
protect the public by passing strong smokefree air laws."

"With political resolve and strong public health partnerships, Maine has
set an example for all states," said Edward Miller, CEO of the American
Lung Association of Maine. Senate for its consideration. A grade of A is assigned to
excellent state policy, while an F indicates inadequate state laws.

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457.5 million individuals in 27 states and the District of
Columbia through group, individual, Medicare, Medicaid and TRICARE
programs . "This is a life-saving accomplishment," said Kirkwood. Finally, although
more than 100 nations have ratified the Framework Convention on Tobacco
Control, the world's first public health treaty , the President has not sent
the treaty to the U.

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"In
the 1990s Maine had one of the highest youth smoking rates in the country
-- and between 1997 and 2005 it declined almost 60 percent.Average State Cigarette Excise Tax Continues to Rise

Twelve states raised their cigarette taxes in 2005 , increasing the average
state cigarette tax to 92 cents per pack (from 84 cents last year).