UnitedHealth Group Reports Record Second Quarter GAAP Net Earnings of $0.70 Per Share

-- Revenues for Second Quarter Rose 57% to Nearly $18 Billion

-- Operating Margin Expanded to 9.1%

-- Reported Operating Cash Flows were $1.7 Billion; Adjusted Operating Cash Flows of $1.54 Billion Increased 24%

-- Earnings Per Share Increased 21%

UnitedHealth Group (NYSE:UNH) achieved record results in thesecond quarter of 2006, reported Chairman and CEO William W. McGuire,M.D. "Our services now extend to 70 million people, as we havesignificantly expanded our share in high-growth health care marketssuch as senior health care, consumer-driven health products, andtechnology and data services, as well as deepened our position inemployer benefit services in key geographic markets," stated Dr.McGuire. "Our operating momentum now supports earnings per sharegrowth in the range of 23 percent to 25 percent in 2006, a furtheradvance over our outlook of three months ago."
Quarterly Financial Performance
Three Months Ended
------------------
June 30, March 31, June 30,
2006 2006 2005
---- ---- ----
Revenues $17.92 billion $17.59 billion $11.39 billion
Earnings From $1.64 billion $1.49 billion $1.25 billion
Operations
Operating Margin 9.1% 8.4% 11.0%

UnitedHealth Group Highlights

UnitedHealth Group first and second quarter 2006 revenues,earnings from operations and operating margins were significantlyaffected by the acquisition of PacifiCare Health Systems (PacifiCare)and the commencement of Medicare Part D. In the UnitedHealth Group andsegment highlights, only sequential quarterly comparisons andcommentary are provided for certain metrics, as year-over-yearperformance comparability is affected by the business mix changesdriven by those two important developments.

-- Second quarter earnings per share of $0.70 increased 21 percent from $0.58 in the second quarter of 2005, and improved 7 cents or 11 percent from the first quarter of 2006.

-- Second quarter consolidated net earnings increased to $974 million, up $204 million or 26 percent year-over-year and $75 million or 8 percent from the first quarter of 2006.

-- Consolidated revenues of $17.9 billion increased $6.5 billion or 57 percent year-over-year, and $331 million or 2 percent from the first quarter of 2006.

-- Consolidated earnings from operations increased to $1.6 billion in the second quarter, up $389 million or 31 percent over the prior year, and up $152 million or 10 percent sequentially.

-- The Company expanded its reach to nearly 4 million entirely new individuals through the first six months of 2006, with strong growth achieved across employer health benefits programs, senior and government services offerings and specialty product lines.

-- Consolidated second quarter operating margin improved to 9.1 percent from 8.4 percent in the first quarter of 2006, reflecting diversified growth coupled with effective continuing expense management and improved underlying business performance in multiple businesses.

-- Second quarter operating costs of $2.6 billion increased by only $6 million from their level in first quarter 2006. Operating costs declined to 14.4 percent of revenues in the second quarter, an improvement of 70 basis points from the second quarter of 2005 and 20 basis points from the first quarter of 2006.

-- The consolidated medical care ratio (medical costs as a percentage of premium revenues), which includes all businesses and products, declined 50 basis points on a sequential quarter basis to 82.0 percent. As expected, on a year-over-year basis the consolidated medical care ratio increased due to the impact of the acquisition of PacifiCare and the commencement of Medicare Part D.

-- Consolidated medical costs payable, excluding the AARP division of Ovations, increased to $7.2 billion at June 30, 2006. Medical costs days payable, which includes all recent acquisitions and the Part D business, remained at 53 days for the quarter, comparable to its level of 53 days payable at March 31, 2006.

-- During the second quarter, the Company realized favorable development of $150 million in its previous estimates of medical costs incurred, virtually all of which pertained to prior years.

-- Accounts receivable, excluding the AARP division of Ovations, were $929 million at June 30, 2006, and represented 5 days sales outstanding.

-- Reported cash flows from operations were $1.7 billion for the second quarter, bringing year-to-date operating cash flows to $4.6 billion. Adjusted to align CMS payment timing to the proper periods, second quarter cash flows from operations were $1.54 billion, up 24 percent year-over-year, and adjusted year-to-date cash flows were $3.1 billion.

-- The Company repurchased 10 million shares during the second quarter of 2006, bringing the year-to-date total share repurchase to 40 million shares, or 3 percent of the shares outstanding at December 31, 2005.

-- Second quarter 2006 annualized return on equity was 22 percent, up from 20 percent in first quarter 2006.

-- The Company supplemented its GAAP results by reporting Part D normalized results for the second quarter of 2006 as follows: earnings per share of $0.73, revenues of $17.841 billion, medical costs of $13.392 billion, a consolidated medical care ratio of 81.5 percent, an operating cost ratio of 14.4 percent, earnings from operations of $1.705 billion, and net earnings of $1.017 billion. Because Part D benefit costs for the new Medicare Part D program are disproportionately higher in the first half of the contract year due to the benefit design, Part D normalized results assume that full-year Medicare Part D benefit costs are recognized based on actuarially projected utilization over the contract year. These amounts represent non-GAAP financial measures and have been presented to facilitate comparability with 2005 quarterly financial results. A further explanation of this basis of presentation and a reconciliation of such amounts to the comparable GAAP measures is included in the attached financial schedules.

Closing Comment

"We have a positive outlook for further earnings growth this year.Our businesses are in an excellent position to sustain growth andperformance, driven by the overall value that their services,technologies and products offer to customers in the end-markets theyserve," concluded Dr. McGuire. "Our quarterly results should benefitsubstantively in the second half of 2006 from the natural seasonalityembedded in a number of our businesses, including Medicare Part D. Wetherefore expect to see accelerating earnings per share growth in thesecond half of this year. At the same time, we continue to build afoundation for future growth in 2007 and beyond, and expect baselineearnings per share to climb another 15 percent in 2007 above ourincreased 2006 outlook of $2.91 to $2.95 per share."

UnitedHealthcare (R)

Ovations

AmeriChoice

Business Description -- Health Care Services

The Health Care Services segment consists of the UnitedHealthcare,AmeriChoice and Ovations business units. UnitedHealthcare coordinatesnetwork-based health and well-being services on behalf of multistatemid-sized and local employers and for consumers. AmeriChoicefacilitates and manages health care services for state-sponsoredMedicaid programs and their beneficiaries. Ovations delivers healthand well-being services to Americans over the age of 50.
Quarterly Financial Performance
Three Months Ended
------------------
June 30, March 31, June 30,
2006 2006 2005
---- ---- ----
Revenues $16.04 billion $15.74 billion $9.81 billion
Earnings From
Operations $1,202 million $1,055 million $911 million
Operating Margin 7.5% 6.7% 9.3%

Key Developments for Health Care Services

Health Care Services revenues, earnings from operations andoperating margins were significantly affected on a year-over-yearbasis by the acquisition of PacifiCare and the commencement ofMedicare Part D.

-- Revenues for Health Care Services grew $6.2 billion or 63 percent year-over-year and $302 million or 2 percent sequentially to $16.0 billion in the second quarter of 2006.

-- Second quarter Health Care Services earnings from operations of $1.2 billion increased $291 million or 32 percent year-over-year and $147 million or 14 percent sequentially.

-- The second quarter operating margin of 7.5 percent expanded 80 basis points sequentially due to an overall improvement in segment profitability and a significant reduction in the quarterly loss incurred on a GAAP basis in the Medicare Part D business.

-- UnitedHealthcare second quarter revenues of $8.8 billion increased $2.1 billion or 31 percent year-over-year and $111 million or 1 percent sequentially.

-- The number of consumers served by UnitedHealthcare at June 30, 2006 was in line with the first quarter, with a gain in fee-based subscribers of 20,000 people offset by a net 45,000-person reduction in risk-based members, including the divestiture of business in Arizona pursuant to the conditions of the PacifiCare merger. This brought the UnitedHealthcare year-to-date net sales gain to 225,000 people. Combining UnitedHealthcare with Uniprise, UnitedHealth Group achieved strong enterprise-wide organic growth of 715,000 consumers in employer-sponsored health benefits through the first six months of 2006.

-- The second quarter 2006 medical care ratio for UnitedHealthcare was 79.9 percent, which was essentially stable with a ratio of 79.7 percent in the first quarter of 2006 for UnitedHealthcare. Excluding acquired commercial businesses, UnitedHealthcare had a medical care ratio of 78.9 percent in the second quarter of 2006, which was consistent with the first quarter 2006 ratio of 78.9 percent and up 30 basis points year-over-year from 78.6 percent in the second quarter of 2005. The 30 basis point increase reflected the fact that second quarter 2005 results for UnitedHealthcare included a comparatively higher level of favorable prior period development.

-- Ovations reported revenues of $6.4 billion in the second quarter, up $4.1 billion or 180 percent year-over-year and $168 million or 3 percent from the first quarter of 2006. Ovations revenues grew 95 percent year-over-year on an organic basis, including the launch of Part D and growth in the PacifiCare senior businesses subsequent to closing.

-- Ovations saw a strong increase in senior participation in medical products through the first six months of 2006, with gains in Medicare supplement product membership of 30,000 people in the second quarter and 85,000 people year-to-date. Similarly, Secure Horizons programs added 100,000 more seniors in the second quarter, bringing total year-to-date organic growth to 215,000 people in this set of offerings.

-- The Ovations Part D business served a total of 5.7 million seniors as of June 30, 2006, and generated revenue of $1.5 billion and a reduced loss from operations in the second quarter as compared to first quarter 2006. The Part D business is well on track to provide positive contributions to earnings on a GAAP basis in the third and fourth quarters and meet its 2006 full-year operating margin target of 3 percent to 4 percent.

-- AmeriChoice second quarter revenues of $913 million increased $69 million or 8 percent year-over-year and $23 million or 3 percent from the first quarter of 2006.

-- AmeriChoice membership increased by a total of 110,000 people through the first six months of 2006, including growth of 15,000 individuals in the second quarter.

Uniprise (R)

Business Description

Uniprise delivers network-based health and well-being services,business-to-business transaction processing services, consumerconnectivity, and technology support services to large employers andhealth plans, and provides health-related consumer and financialtransaction products and services.
Quarterly Financial Performance
Three Months Ended
------------------
June 30, March 31, June 30,
2006 2006 2005
---- ---- ----
Revenues $1.39 billion $1.37 billion $1.24 billion
Earnings From
Operations $218 million $215 million $185 million
Operating Margin 15.7% 15.7% 14.9%

Key Developments

-- Second quarter revenues of $1.4 billion increased $153 million or 12 percent year-over-year and $22 million or 2 percent over the first quarter of 2006.

-- Uniprise increased the number of people it serves in the national multilocation employer segment by 90,000 in the second quarter, bringing year-to-date organic growth to 490,000 new consumers. Uniprise and UnitedHealthcare together have grown their employer-sponsored health benefits businesses by 715,000 people through the first six months of 2006.

-- Participation in consumer-driven health plan products grew by 175,000 people in the second quarter and reached 1.8 million people across UnitedHealth Group businesses as of June 30, 2006, reflecting growing market response to new approaches that provide clinical and financial transparency along with individual consumer control.

-- Uniprise earnings from operations of $218 million grew $33 million or 18 percent year-over-year and $3 million or 1 percent over the first quarter of 2006. The Uniprise operating margin of 15.7 percent expanded 80 basis points year-over-year, reflecting ongoing advances in quality process improvements.

Specialized Care Services

Business Description

Specialized Care Services offers a comprehensive array ofspecialized benefits, networks, services and resources to helpconsumers improve their health and well-being.
Quarterly Financial Performance
Three Months Ended
------------------
June 30, March 31, June 30,
2006 2006 2005
---- ---- ----
Revenues $990 million $980 million $678 million
Earnings From
Operations $186 million $182 million $130 million
Operating Margin 18.8% 18.6% 19.2%

Key Developments

-- Second quarter revenues rose to $990 million, up $312 million or 46 percent year-over-year and $10 million or 1 percent from the first quarter of 2006.

-- Specialized Care Services signed new contracts in the second quarter totaling more than $100 million in projected new annual revenue with payers and other entities that represent 2.2 million people. Effective dates of service commence from July 1, 2006 through early 2007.

-- In the second quarter, earnings from operations of $186 million increased $56 million or 43 percent year-over-year and $4 million or 2 percent sequentially.

-- The Specialized Care Services second quarter operating margin of 18.8 percent remained generally consistent with prior periods, increasing 20 basis points sequentially and decreasing 40 basis points year-over-year. The slight year-over-year margin decrease reflected strong growth in comparatively lower margin service lines, offset by continued gains in quality initiatives and operating efficiencies.

Ingenix (R)

Business Description

Ingenix is a leader in the field of health care data, analysis andapplication, serving pharmaceutical companies, health insurers andother payers, physicians and other health care providers, largeemployers and governments.
Quarterly Financial Performance
Three Months Ended
------------------
June 30, March 31, June 30,
2006 2006 2005
---- ---- ----
Revenues $211 million $200 million $175 million
Earnings From
Operations $32 million $34 million $23 million
Operating Margin 15.2% 17.0% 13.1%

Key Developments

-- Ingenix revenues increased $36 million, or 21 percent year-over-year, to $211 million in the second quarter of 2006, reflecting strong growth across the full scope of Ingenix product lines.

-- The Ingenix contract revenue backlog across its diverse product lines reached more than $1.05 billion at June 30, 2006. This compares to backlog levels of $822 million for the comparable prior-year period and $850 million as of year-end 2005, highlighting growing revenue momentum.

-- New sales activity in the second quarter included significant new orders in pharmaceutical safety and research services, decision-support tools, fraud and recovery services, and technologies to collect, analyze and manage medical cost data.

-- Ingenix second quarter earnings from operations increased $9 million or 39 percent year-over-year and decreased $2 million or 6 percent sequentially. The second quarter operating margin of 15.2 percent declined 180 basis points from first quarter 2006 and increased 210 basis points year-over-year. The sequential reduction in operating margin in the second quarter was due to increased new product development and marketing activities, as well as the typical seasonal slowdown in shipments of coding and referential products to the physician and provider market segment.

-- Ingenix anticipates sequential gains in revenues, earnings from operations and operating margin in the second half of 2006 as compared to the first six months, as product revenues are expected to again increase seasonally in the second half of the year.

About UnitedHealth Group

UnitedHealth Group (www.unitedhealthgroup.com) is a diversifiedhealth and well-being company dedicated to making health care workbetter. Headquartered in Minneapolis, Minn., UnitedHealth Group offersa broad spectrum of products and services through six operatingbusinesses: UnitedHealthcare, Ovations, AmeriChoice, Uniprise,Specialized Care Services and Ingenix. Through its family ofbusinesses, UnitedHealth Group serves more than 70 million individualsnationwide.

Forward-Looking Statements

This news release may contain statements, estimates or projectionsthat constitute "forward-looking" statements as defined under U.S.federal securities laws. Generally the words "believe," "expect,""intend," "estimate," "anticipate," "project," "will" and similarexpressions identify forward-looking statements, which generally arenot historical in nature. These statements may contain informationabout financial prospects, economic conditions, trends and unknowncertainties. We caution that actual results could differ materiallyfrom those that management expects, depending on the outcome ofcertain factors. These forward-looking statements involve risks anduncertainties that may cause our actual results to differ materiallyfrom the results discussed in the forward-looking statements. Somefactors that could cause results to differ materially from theforward-looking statements include: increases in health care coststhat are higher than we anticipated in establishing our premium rates,including increased consumption of or costs of medical services;heightened competition as a result of new entrants into our market,and consolidation of health care companies and suppliers; events thatmay negatively affect our contract with AARP; uncertainties regardingchanges in Medicare, including coordination of information systems andaccuracy of certain assumptions; funding risks with respect to revenuereceived from Medicare and Medicaid programs; increases in costs andother liabilities associated with increased litigation, legislativeactivity and government regulation and review of our industry;potential consequences surrounding findings of our ongoing internalinvestigation, investigation by a committee of our independentdirectors and informal SEC inquiry into our stock option grantingpractices, as well as a subpoena from the office of the U.S. Attorneyfor the Southern District of New York requesting documents relating tostock option grants since 1999 and a request from the Internal RevenueService for documents relating to the compensation of certainexecutive officers; uncertainty of results of pending civil litigationrelating to our stock option granting practices; our ability toexecute contracts on competitive terms with physicians, hospitals andother service providers; regulatory and other risks associated withthe pharmacy benefits management industry; failure to maintaineffective and efficient information systems, which could result in theloss of existing customers, difficulties in attracting new customers,difficulties in determining medical costs estimates and appropriatepricing, customer and physician and health care provider disputes,regulatory violations, increases in operating costs, or other adverseconsequences; possible impairment of the value of our intangibleassets if future results do not adequately support goodwill andintangible assets recorded for businesses that we acquire; potentialnoncompliance by our business associates with patient privacy data;misappropriation of our proprietary technology; and anticipatedbenefits of acquiring PacifiCare that may not be realized. This listof important factors is not intended to be exhaustive. A further listand description of some of these risks and uncertainties can be foundin our reports filed with the Securities and Exchange Commission fromtime to time, including our annual reports on Form 10-K and quarterlyreports on Form 10-Q. Any or all forward-looking statements we makemay turn out to be wrong. You should not place undue reliance onforward-looking statements, which speak only as of the date they aremade. Except to the extent otherwise required by federal securitieslaws, we do not undertake to publicly update or revise anyforward-looking statements.

Earnings Conference Call

As previously announced, UnitedHealth Group will discuss theCompany's results, strategy and future outlook on a conference callwith investors at 8:45 a.m. Eastern time today. UnitedHealth Groupwill host a live webcast of this conference call from the InvestorInformation page of the Company's Web site(www.unitedhealthgroup.com). The webcast replay of the call will beavailable on the same site for one week following the live call. Theconference call replay can also be accessed by dialing 800-642-1687,conference ID #1716933. This earnings release and the Form 8-K datedJuly 19, 2006, which may also be accessed in the Investor Informationsection of the Company's Web site athttp://www.unitedhealthgroup.com/invest/finsec.htm, include areconciliation of non-GAAP financial measures.
UNITEDHEALTH GROUP

Earnings Release Schedules and Supplementary Information
Quarter Ended June 30, 2006

- Consolidated Statements of Operations

- Condensed Consolidated Balance Sheets

- Condensed Consolidated Statements of Cash Flows

- Segment Financial Information

- Customer Profile Summary

- Non-GAAP Financial Measures and Supplementary Information
UNITEDHEALTH GROUP
CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except per share data)
(unaudited)

Three Months Ended Six Months Ended
June 30, June 30,
--------------------- ---------------------

2006 2005 (a)(b) 2006 2005 (a)(b)
------- ----------- ------- -----------
REVENUES
Premiums $16,509 $ 10,339 $32,716 $ 20,487
Services 1,213 920 2,420 1,822
Investment and Other
Income 195 129 367 243
------- ----------- ------- -----------

Total Revenues 17,917 11,388 35,503 22,552
------- ----------- ------- -----------

COSTS
Medical Costs 13,535 8,314 26,908 16,469
Operating Costs 2,576 1,717 5,146 3,417
Depreciation and
Amortization 168 108 325 217
------- ----------- ------- -----------

Total Costs 16,279 10,139 32,379 20,103
------- ----------- ------- -----------

EARNINGS FROM OPERATIONS 1,638 1,249 3,124 2,449

Interest Expense (116) (55) (198) (104)
------- ----------- ------- -----------

EARNINGS BEFORE INCOME
TAXES 1,522 1,194 2,926 2,345

Provision for Income
Taxes (548) (424) (1,053) (832)
------- ----------- ------- -----------

NET EARNINGS $ 974 $ 770 $ 1,873 $ 1,513
======= =========== ======= ===========

BASIC NET EARNINGS PER
COMMON SHARE $ 0.73 $ 0.61 $ 1.39 $ 1.19
======= =========== ======= ===========

DILUTED NET EARNINGS PER
COMMON SHARE $ 0.70 $ 0.58 $ 1.33 $ 1.14
======= =========== ======= ===========

Diluted Weighted-Average
Common Shares Outstanding 1,396 1,321 1,409 1,331
======= =========== ======= ===========

(a) Restated to include the impact of FAS 123R, which we adopted
effective January 1, 2006.

(b) Starting in 2006, we have reclassified or "grossed up" premium
revenue and expenses for a Uniprise account. We have conformed all
reporting periods to this practice to make all periods comparable.
This change had no impact to reported earnings.

UNITEDHEALTH GROUP
CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions)
(unaudited)

June 30, December 31,
2006 2005 (a)
------- ----------

ASSETS
Cash and Short-Term Investments $10,049 $ 6,011
Accounts Receivable, net 1,350 1,200
Other Current Assets 4,094 3,339
------- ----------

Total Current Assets 15,493 10,550

Long-Term Investments 8,937 8,971
Other Long-Term Assets 22,217 21,763
------- ----------

Total Assets $46,647 $ 41,284
======= ==========


LIABILITIES AND SHAREHOLDERS' EQUITY
Medical Costs Payable $ 8,241 $ 7,301
Commercial Paper and Current Maturities
of Long-Term Debt 939 3,261
Other Current Liabilities 9,996 5,992
------- ----------

Total Current Liabilities 19,176 16,554

Long-Term Debt, less current maturities 6,450 3,850
Future Policy Benefits for Life and Annuity
Contracts 1,799 1,761
Deferred Income Taxes and Other Liabilities 1,066 1,174
Shareholders' Equity 18,156 17,945
------- ----------

Total Liabilities and Shareholders' Equity $46,647 $ 41,284
======= ==========

---------------------------------------------------------------
The table below summarizes certain non-GAAP balance sheet data
excluding AARP related amounts:
June 30, December 31,
2006 2005
-------- ------------
Accounts Receivable, net $ 929 $ 786
Other Current Assets $ 2,317 $ 1,547
Other Current Liabilities $ 8,848 $ 4,787
Medical Costs Payable $ 7,191 $ 6,300
Days Medical Costs in Medical Costs Payable
(b) 53 61
----------------------------------------------------------------

(a) Restated to include the impact of FAS 123R, which we adopted
effective January 1, 2006.

(b) Days Medical Costs in Medical Costs Payable was 53 days as of
March 31, 2006. Days Medical Costs in Medical Costs Payable as of
December 31, 2005 of 61 days excludes the impact of PacifiCare
Health Systems, Inc. (PacifiCare), which was acquired in December
2005.

UNITEDHEALTH GROUP
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)
(unaudited)

Six Months Ended
June 30,
--------------------
2006 2005 (a)
------- ----------
Operating Activities
Net Earnings $ 1,873 $ 1,513
Noncash Items:
Depreciation and amortization 325 217
Deferred income taxes and other (308) (99)
Stock-based compensation 174 117
Net changes in operating assets and
liabilities 2,542 629
------- ----------
Cash Flows From Operating Activities (b) 4,606 2,377
------- ----------

Investing Activities
Cash paid for acquisitions, net of cash
assumed (647) (115)
Purchases of property, equipment and
capitalized software, net (329) (222)
Net sales and maturities/(purchases) of
investments (147) (471)
------- ----------
Cash Flows Used For Investing Activities (1,123) (808)
------- ----------

Financing Activities
Common stock repurchases (2,344) (2,138)
Net change in commercial paper and debt 583 227
Stock-based compensation excess tax benefit 195 120
Customer funds administered 1,977 78
Other, net 150 195
------- ----------
Cash Flows From (Used For) Financing
Activities 561 (1,518)
------- ----------

Increase in cash and cash equivalents 4,044 51
Cash and cash equivalents, beginning of period 5,421 3,991
------- ----------
Cash and cash equivalents, end of period $ 9,465 $ 4,042
======= ==========

(a) Restated to include the impact of FAS 123R, which we adopted
effective January 1, 2006.

(b) See Cash Flows From Operating Activities as adjusted for the
timing of CMS premium payments on page 8 of these financial
schedules.
UNITEDHEALTH GROUP
SEGMENT FINANCIAL INFORMATION
(in millions)
(unaudited)

REVENUES
---------------------------

Three Months Ended Six Months Ended
June 30, June 30,
------------------ ------------------
2006 2005 2006 2005
------- -------- ------- --------

UnitedHealthcare $ 8,758 $ 6,694 $17,405 $ 13,300
Ovations 6,367 2,274 12,566 4,469
AmeriChoice 913 844 1,803 1,671
------- -------- ------- --------
Health Care Services 16,038 9,812 31,774 19,440
Uniprise 1,392 1,239 (b) 2,762 2,457 (b)
Specialized Care Services 990 678 1,970 1,325
Ingenix 211 175 411 341
Eliminations (714) (516) (1,414) (1,011)
------- -------- ------- --------

Total Consolidated $17,917 $ 11,388 $35,503 $ 22,552
======= ======== ======= ========


EARNINGS FROM OPERATIONS
----------------------------

Three Months Ended Six Months Ended
June 30, June 30,
------------------ ------------------
2006 2005 (a) 2006 2005 (a)
------- -------- ------- --------

Health Care Services $ 1,202 $ 911 $ 2,257 $ 1,792
Uniprise 218 185 433 362
Specialized Care Services 186 130 368 254
Ingenix 32 23 66 41
------- -------- ------- --------
Total Consolidated $ 1,638 $ 1,249 $ 3,124 $ 2,449
======= ======== ======= ========

(a) Restated to include the impact of FAS 123R, which we adopted
effective January 1, 2006.

(b) Reflects a reclassification to conform to the 2006 presentation as
described on page 2 of these financial schedules.

UNITEDHEALTH GROUP
CUSTOMER PROFILE SUMMARY
(in thousands)
(unaudited)

June March December June December
Customer Profile 2006 (a) 2006 2005 2005 2004
------------------------- -------- ------- -------- ------- ----------

Commercial Businesses
Risk-based 14,590 14,610 14,655 11,530 10,820
Fee-based 18,415 18,340 17,285 16,665 15,525

Federal, State, and
Municipal Governments (b) 13,895 12,660 8,870 7,075 7,035

Individual Consumers (c) 1,180 1,420 1,685 1,540 1,455

Institutional (d) 21,950 22,415 23,630 19,715 19,005
-------- ------- -------- ------- ----------

Grand Total 70,030 69,445 66,125 56,525 53,840
======== ======= ======== ======= ==========

Total Medicare Part D
(included above) 5,670 4,500
======== =======

Consumer-Directed Health
Plans (included above) 1,800 1,625 1,175 1,005 560
======== ======= ======== ======= ==========


----------------------------------------------------------------------

Supplemental Segment June March December June December
Profile - Health Care
Services and Uniprise
2006 (a) 2006 2005 2005 2004
-------- ------- -------- ------- ----------
Health Care Services:
Risk-based
commercial 9,910 9,955 10,105 7,700 7,655
Fee-based commercial 4,620 4,600 3,990 3,455 3,305
Medicare Advantage 1,395 1,295 1,150 355 330
Medicaid 1,360 1,345 1,250 1,265 1,260
-------- ------- -------- ------- ----------
Total Health Care
Services 17,285 17,195 16,495 12,775 12,550
======== ======= ======== ======= ==========

Uniprise 11,035 10,945 10,495 10,540 9,875
======== ======= ======== ======= ==========
----------------------------------------------------------------------

(a) Excludes 35,000 risk-based commercial and 20,000 fee-based
commercial individuals served in connection with an acquisition
which closed on June 30, 2006.

(b) Increase primarily due to individuals served in connection with
the new Medicare Part D program beginning January 1, 2006.

(c) Decrease primarily due to individuals who historically had
non-governmental drug cards switching to the Medicare Part D
program.

(d) Decrease primarily due to individuals who historically had only
AARP Medicare supplement products, but added drug coverage under
the Medicare Part D program.
UNITEDHEALTH GROUP
Reconciliation of Non-GAAP Measures
(in millions, except per share data)
(unaudited)

Three Months Ended June 30, 2006
----------------------------------------------
Consolidated GAAP Non-GAAP Consolidated
Reporting Reconciling "Part D
Items Normalized"
-----------------------------------------------
REVENUES
Premiums $ 16,509 $ (76)(a) $16,433
Services 1,213 - 1,213
Investment and Other
Income 195 - 195
-------- -------- -------

Total Revenues 17,917 (76) 17,841
-------- -------- -------

COSTS
Medical Costs 13,535 (143)(b) 13,392
Operating Costs 2,576 - 2,576
Depreciation and
Amortization 168 - 168
-------- -------- -------

Total Costs 16,279 (143) 16,136
-------- -------- -------

EARNINGS FROM
OPERATIONS 1,638 67 1,705

Interest Expense (116) - (116)
-------- -------- -------

EARNINGS BEFORE INCOME
TAXES 1,522 67 1,589

Provision for Income
Taxes (548) (24) (572)
-------- -------- -------

NET EARNINGS $ 974 $ 43 $ 1,017
======== ======== =======

BASIC NET EARNINGS PER
COMMON SHARE $ 0.73 $ 0.03 $ 0.76
======== ======== =======

DILUTED NET EARNINGS
PER COMMON SHARE $ 0.70 $ 0.03 $ 0.73
======== ======== =======

Diluted Weighted-
Average Common Shares
Outstanding 1,396 1,396 1,396
======== ======== =======

Medical Care Ratio 82.0% 81.5%
Operating Cost Ratio 14.4% 14.4%
Operating Margin 9.1% 9.6%
Return on Equity 21.8% 22.6%




Six Months Ended June 30, 2006
-------------------------------------------------
Consolidated GAAP Non-GAAP Consolidated
Reporting Reconciling "Part D
Items Normalized"
-------------------------------------------------
REVENUES
Premiums $ 32,716 $ (423)(a) $ 32,293
Services 2,420 - 2,420
Investment and Other
Income 367 - 367
-------- -------- ----------

Total Revenues 35,503 (423) 35,080
-------- -------- ----------

COSTS
Medical Costs 26,908 (597)(b) 26,311
Operating Costs 5,146 - 5,146
Depreciation and
Amortization 325 - 325
-------- -------- ----------

Total Costs 32,379 (597) 31,782
-------- -------- ----------

EARNINGS FROM
OPERATIONS 3,124 174 3,298

Interest Expense (198) - (198)
-------- -------- ----------

EARNINGS BEFORE
INCOME TAXES 2,926 174 3,100

Provision for Income
Taxes (1,053) (63) (1,116)
-------- -------- ----------

NET EARNINGS $ 1,873 $ 111 $ 1,984
======== ======== ==========

BASIC NET
EARNINGS PER
COMMON SHARE $ 1.39 $ 0.08 $ 1.47
======== ======== ==========

DILUTED NET
EARNINGS PER
COMMON SHARE $ 1.33 $ 0.08 $ 1.41
======== ======== ==========

Diluted Weighted-
Average Common
Shares
Outstanding 1,409 1,409 1,409
======== ======== ==========

Medical Care Ratio 82.2% 81.5%
Operating Cost Ratio 14.5% 14.7%
Operating Margin 8.8% 9.4%
Return on Equity 20.9% 22.1%

Note: The Company began providing Medicare Part D prescription drug
insurance coverage on January 1, 2006. As a result of the
Medicare Part D benefit design, the Company incurs benefit
costs unevenly during the contract year with a
disproportionate amount of claims incurred in the first half
of the annual contract year. On a full year basis, management
estimates that Medicare Part D will generate a 3% to 4%
operating margin, however, as a result of the benefit design,
Medicare Part D revenues of approximately $3.1 billion
generated a negative operating margin of approximately 4%
during the first half of 2006.

The "Part D Normalized" results have been presented to enhance
comparability with 2005 quarterly results. The "Part D
Normalized" results assume that full year Medicare Part D
benefit costs are recognized based on actuarially projected
utilization over the contract year. Accordingly, "Part D
Normalized" results for the first half of 2006 include a pro
rata share of management's estimate of full year 2006 Medicare
Part D benefit costs relating to beneficiaries as of June 30,
2006. "Part D Normalized" results are not meant to be
considered in isolation or as a substitute for net earnings or
diluted net earnings per share prepared in accordance with
GAAP.

(a) Represents estimated CMS Medicare Part D risk-share premium
adjustment that is recorded under GAAP as results fall within the
provisions of the risk-sharing arrangement. This adjustment is not
necessary under "Part D Normalized" as medical costs reflect a
pro-rata share of estimated annual medical costs.

(b) Represents actual medical costs incurred under the Medicare Part D
contract in excess of a pro-rata share of estimated annual medical
costs.

UNITEDHEALTH GROUP
Reconciliation of Non-GAAP Measures
Adjusted Cash Flows (a)
(in millions)
(unaudited)

Three Months Six Months Ended
Ended June 30, June 30,
---------------- ----------------
2006 2005 2006 2005
-------- ------- -------- -------

GAAP Cash Flows From Operating
Activities $ 1,718 $1,242 $ 4,606 $2,377

July 2006 CMS Premium Payment
Received in June 2006 (1,511) - (1,511) -

April 2006 CMS Premium Payment
Received in March 2006 1,336 - - -

January 2005 CMS Premium Payment
Received in December 2004 - - - 275

-------- ------- -------- -------
Adjusted Cash Flows From Operating
Activities $ 1,543 $1,242 $ 3,095 $2,652
======== ======= ======== =======

(a) Adjusted Cash Flows From Operating Activities is presented to
facilitate the comparison of cash flows from operating activities
for periods in which the Company does not receive its monthly
premium payments from the Centers for Medicare and Medicaid
Services (CMS) in the applicable quarter. CMS generally pays their
monthly premium on the first calendar day of the applicable month.
If the first calendar day of the month falls on a weekend or a
holiday, CMS has typically paid the Company on the last business
day of the preceding calendar month. As such, GAAP operating cash
flows may vary depending upon which payments are received by the
Company from CMS during a particular period. Adjusted Cash Flows
From Operating Activities presents operating cash flows assuming
that each monthly CMS premium payment was received on the first
calendar day of the applicable month.

UNITEDHEALTH GROUP
Supplementary Information - Reinsurance
Reclassification
(in millions)
(unaudited)

Three Months Ended June 30, 2006
--------------------------------------------
Historical Reclassification As Adjusted
Reporting (a)
--------------- ---------------- -----------
UnitedHealth Group Consolidated
-------------------------------
Revenues $17,609 $ 308 $ 17,917
Medical Costs $13,255 $ 280 $ 13,535
Operating Costs $ 2,548 $ 28 $ 2,576
Medical Care Ratio 81.8% 82.0%
Operating Cost Ratio 14.5% 14.4%

Uniprise
--------
Revenues $ 1,084 $ 308 $ 1,392
Operating Margin 20.1% 15.7%

Three Months Ended June 30, 2005
--------------------------------------------
Historical Reclassification As Adjusted
Reporting (a)
--------------- ---------------- -----------
UnitedHealth Group Consolidated
-------------------------------
Revenues $11,111 $ 277 $ 11,388
Medical Costs $ 8,061 $ 253 $ 8,314
Operating Costs $ 1,693 $ 24 $ 1,717
Medical Care Ratio 80.1% 80.4%
Operating Cost Ratio 15.2% 15.1%

Uniprise
--------
Revenues $ 962 $ 277 $ 1,239
Operating Margin 19.2% 14.9%



Six Months Ended June 30, 2006
--------------------------------------------
Historical Reclassification As Adjusted
Reporting (a)
------------- ----------------- ------------
UnitedHealth Group Consolidated
-------------------------------
Revenues $34,890 $ 613 $ 35,503
Medical Costs $26,347 $ 561 $ 26,908
Operating Costs $ 5,094 $ 52 $ 5,146
Medical Care Ratio 82.1% 82.2%
Operating Cost Ratio 14.6% 14.5%

Uniprise
--------
Revenues $ 2,149 $ 613 $ 2,762
Operating Margin 20.1% 15.7%

Six Months Ended June 30, 2005
--------------------------------------------
Historical Reclassification As Adjusted
Reporting (a)
------------- ----------------- ------------
UnitedHealth Group Consolidated
-------------------------------
Revenues $21,998 $ 554 $ 22,552
Medical Costs $15,963 $ 506 $ 16,469
Operating Costs $ 3,369 $ 48 $ 3,417
Medical Care Ratio 80.1% 80.4%
Operating Cost Ratio 15.3% 15.2%

Uniprise
--------
Revenues $ 1,903 $ 554 $ 2,457
Operating Margin 19.0% 14.7%

(a) Reflects the impact of FAS 123R, which we adopted effective
January 1, 2006.

Note: Starting in 2006, we have reclassified or "grossed up" premium
revenue and expenses for a Uniprise account where we have
employed third party reinsurance. While this reinsurance
contract has been in place for a number of years, recent
accounting interpretations suggest this reinsurance
arrangement be presented on a gross versus net basis. We have
conformed all reporting periods to this practice to make all
periods comparable. This change had no impact to reported
earnings.