As outlined in Conseco's 2008 Form 10-K filing, its life insurance subsidiaries are subject to risk-based capital requirements pursuant to statutory rules and regulations. To determine the amount of required risk-based capital, the regulations include a "mortgage experience adjustment factor" that is applied to the company's entire portfolio of commercial mortgage loans.

At the recently concluded NAIC summer meeting, a proposal to modify the mortgage experience adjustment factor calculation was adopted for the year 2009. On a pro-forma basis as of March 31, 2009, the revised calculation reduces the amount of capital Conseco's insurance subsidiaries are required to hold, increasing the company's consolidated risk-based capital ratio by more than 25 points.

It is our understanding that the Capital Adequacy Task Force of the NAIC will monitor market conditions and progress on proposals that may result in modifying or extending the proposal beyond 2009. There can be no assurance that the short-term adjustment will continue beyond 2009.

About Conseco

Conseco, Inc.'s insurance companies help protect working American families and seniors from financial adversity: Medicare supplement, long-term care, cancer, heart/stroke and accident policies protect people against major unplanned expenses; annuities and life insurance products help people plan for their financial futures. For more information, visit Conseco's website at www.conseco.com.

Cautionary Statement Regarding Forward-Looking Statements. Our statements, trend analyses and other information contained in this press release relative to markets for Conseco's products and trends in Conseco's operations or financial results, as well as other statements, contain forward-looking statements within the meaning of the federal securities laws and the Private Securities Litigation Reform Act of 1995. Forward-looking statements typically are identified by the use of terms such as "anticipate," "believe," "plan," "estimate," "expect," "project," "intend," "may," "will," "would," "contemplate," "possible," "attempt," "seek," "should," "could," "goal," "target," "on track," "comfortable with," "optimistic" and similar words, although some forward-looking statements are expressed differently.