HealthMarkets(SM) Selects Haley As A Business Rules Supplier

PITTSBURGH - October 16, 2006 - Haley Systems, Inc. today announced that HealthMarkets, a leading provider of affordable health and life insurance for individuals, the self-employed, small businesses and students, has selected its Business Rules Management System (BRMS).

HealthMarkets selected Haley as a business rules vendor following a successful implementation of Haley's BRMS. Among the key reasons for selecting Haley were the system's platform independence, English authoring and support for a Service-Oriented Architecture (SOA) capability in both the runtime and authoring environments. HealthMarkets intends to use Haley in an SOA environment to achieve a shared business rule repository that will reduce duplicate business logic throughout multiple applications.

"We believe that the Haley BRMS solution enhances our ability to develop and support our business applications," said Edward J. Zecchini, Senior Vice President and Chief Information Officer of HealthMarkets. "We anticipate that Haley's BRMS technology will enable our business and technical teams to respond quickly to the constantly changing landscape of regulatory, underwriting and marketing rules of the health and life insurance industry."

By adopting Haley's BRMS, HealthMarkets hopes to improve speed-to-market and agent and customer experience at the point of sale. HealthMarkets sought a small, fast and nimble business rules engine that could handle the complex network of underwriting, regulatory and marketing business rules for its products.

Chief among the factors contributing to HealthMarkets' decision to select Haley's BRMS were its level of platform independence and its English-based natural language rules authoring. This technology provides HealthMarkets with the ability to use a single governing document of all product configuration rules that can be easily understood by the entire organization.

"With the rapid pace of both business and technological change in the insurance industry today, carriers' needs for business agility have never been higher," said Haley President and CEO Hans Witt. "HealthMarkets' planned widespread deployment of business rules for its applications reinforces its position as one of the most forward-thinking and innovative users of information technology in the insurance industry."

About HealthMarkets

HealthMarkets, headquartered in North Richland Hills, Tx., is a provider of health and life insurance products to individuals, the self-employed, small businesses and students. HealthMarkets offers products and services through its subsidiaries: The MEGA Life and Health Insurance Company, Mid-West National Life Insurance Company of Tennessee and The Chesapeake Life Insurance Company. The Company's offerings include individual and self-employed health insurance, small employer group health insurance, student health insurance, life insurance and reinsurance. Through its Consumer Guided Health Insurance plans, HealthMarkets seeks to provide affordable and accessible health coverage to individuals and small businesses. As of April 5, 2006, the Company is owned by a group of private equity investors, including The Blackstone Group, Goldman Sachs Capital Partners and DLJ Merchant Banking Partners, members of management and the Company's dedicated, licensed agents through the Company's agent stock accumulation plans. For more information, visit www.healthmarkets.com.

About Haley Systems

Founded in 1989, Haley Systems, Inc. is the first business rules management system (BRMS) vendor to address the demanding needs of dynamic enterprises that require frequent and rapid changes to complex business processes and rules. The Haley Business Rules Management Suite is the only BRMS on the market to combine high-performance, rules-based processing with natural English language understanding. Haley customers use plain English to automate business rules in their strategic software applications. By empowering business users to manage business rules and decisions directly from their desktop, Haley eliminates the IT bottleneck caused by dependency on programmer intervention to create and maintain rules. Haley users gain dramatically reduced rule change cycle times, resulting in several competitive advantages, including improved customer responsiveness, enhanced revenue opportunities, faster time-to-market and reduced IT costs. Major Global 1000 companies such as Adobe, Cigna, BUPA, KPN and One Beacon Insurance, as well as government organizations including the U.S. Army, and the Department of Labor rely on Haley products. Based in Pittsburgh, Pa., Haley is privately held, with venture capital backing from Pequot Ventures, Draper Triangle Ventures, LP, and PA Early Stage. For more information on Haley Systems, visit www.haley.com.

SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995:

Some of the matters discussed in this news release may contain forward-looking statements that are subject to certain risks, uncertainties and assumptions. Such forward-looking statements are intended to be identified in this document by the words "anticipate", "believe", "estimate", "expect", "intend", "objective", "plan", "possible", "potential" and similar expressions. Actual results may vary materially from those included in the forward-looking statements. Factors that could cause actual results to differ materially from those included in the forward-looking statements include, but are not limited to, general economic conditions; the continued ability of HealthMarkets (the "Company") to compete for customers and insureds in an industry where many of its competitors may have greater market share and/or greater financial resources; the Company's ability to accurately estimate medical claims and control costs; changes in government regulation that could increase the costs of compliance or cause the Company to discontinue marketing its products in certain states; the Company's failure to comply with new or existing government regulation that could subject it to significant fines and penalties; changes in the relationship between the Company and the membership associations and/or changes in the laws and regulations governing so-called "association group" insurance (particularly changes that would subject the issuance of policies to prior premium rate approval and/or require the issuance of policies on a "guaranteed issue" basis); significant liabilities and costs associated with litigation; failure of the Company's information systems to provide timely and accurate information; negative publicity regarding the Company's business practices and/or regarding the health insurance industry in general; the Company's inability to enter into or maintain satisfactory relationships with networks of hospitals, physicians, dentists, pharmacies and other health care providers; failure of the Company's regulated insurance company subsidiaries to maintain their current ratings by A.M. Best Company, Fitch and/or Standard & Poor's; failure to obtain court approval of the proposed settlements; and the other risk factors set forth in the reports filed by the Company with the Securities and Exchange Commission.

HaleyAuthority and HaleyRules are trademarks of Haley Systems, Inc. All other product and company names mentioned are the property of their respective owners and are mentioned for identification purposes only.