Conseco Reports Preliminary Fourth Quarter and Year-E...(ent losses net of related amortizati...),Health

amortization and taxes (23.0) (77.8)

Net loss applicable to common stock $(72.2) $(210.1)

Per diluted share:

Net operating income (loss) before

valuation allowance for deferred tax assets $.10 $ (.37)

Valuation allowance for deferred tax assets (.37) (.39)

Net operating loss (.27) (.76)

Net realized investment losses, net of

related amortization and taxes (.12) (.45)

Net loss applicable to common stock $(.39) $(1.21)

In the fourth quarter of 2007, several items had noteworthy impacts on our results:
-- Earnings in the Conseco Insurance Group segment were negatively

affected by the adjustments we made to our estimates of future profits

for certain interest-sensitive life blocks of business. These

adjustments resulted in increases to amortization expense and

policyholder benefits totaling approximately $17 million.

-- Earnings in the Conseco Insurance Group segment were also negatively

affected by $4.2 million of trading losses related to the termination

of interest rate swap agreements held in our trading portfolio.

-- Earnings in the Colonial Penn segment were negatively impacted by $8.4

million of expense related to the introduction of Medicare Advantage

products through this distribution channel.

-- Based on our evaluation of deferred tax assets, we determined the need

to increase the valuation allowance by $68.0 million (primarily related

to tax benefits resulting from the losses recognized in 2007).

-- We recognized net realized investment losses of $23.0 million,

including losses related to impairments of $16.1 million.

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