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AMERIGROUP to Acquire Memphis Health Plan
Date:9/5/2007

VIRGINIA BEACH, Va., Sept. 5 /PRNewswire-FirstCall/ -- AMERIGROUP Corporation (NYSE: AGP) today announced that the controlling members of Memphis Managed Care Corporation have approved the sale of its assets, including TLC Family Care Health Plan, to AMERIGROUP Community Care of Tennessee, subject to regulatory approval by the State of Tennessee. The transaction is expected to close in the fourth quarter of 2007.

TLC Family Care Health Plan serves about 167,000 low-income Tennessee residents who are enrolled in the State's TennCare program and who live in Memphis and the surrounding West Tennessee region. A subsidiary of AMERIGROUP Corporation, AMERIGROUP Community Care of Tennessee serves about 182,000 low- income people who are enrolled in TennCare and who live in Nashville and the surrounding Middle Tennessee region.

"TLC Family Care Health Plan has long been known in the Memphis community for its commitment to quality and service, and AMERIGROUP is enthusiastic about joining with this organization," said James G. Carlson, President and Chief Executive Officer of AMERIGROUP Corporation. "We believe that the State has done an exceptional job revitalizing the TennCare program and that we can only strengthen the quality of healthcare services available to citizens in West Tennessee by bringing together the resources of two organizations who share a common mission."

"We are pleased to join with AMERIGROUP and continue our mission of enabling our West Tennessee members to lead healthier, longer and more enriched lives," said Al King, Chief Executive Officer of Memphis Managed Care Corporation. "We have been working to meet the needs of West Tennessee since 1994, and we believe that AMERIGROUP is the rig
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SOURCE AMERIGROUP Corporation
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