Conseco Seeks Amendment of Its Credit Facility

CARMEL, Ind., March 24 /PRNewswire-FirstCall/ -- Conseco, Inc. (NYSE: CNO)
today announced that it is seeking to amend its existing $911.8 million senior
secured credit agreement. Banc of America Securities LLC will act as lead
arranger in connection with the amendment. The amendment, which does not seek
any additional borrowing or any changes in the current repayment schedule, is
expected to provide for, among other things, amendments and/or waivers of
covenants, including financial covenants, and an increase in the interest rate
payable by the Company. The proposed amendment will require consent from a
majority of the lenders. There can be no assurance that such amendments or
waivers will be obtained or that the terms that can be obtained would be
satisfactory to the Company.

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. You should
consider statements that contain these words carefully because they describe
our expectations, plans, strategies and goals and our beliefs concerning
future business conditions, our results of operations, financial position, and
our business outlook or they state other ''forward-looking'' information based
on currently available information. Assumptions and other important factors
that could cause our actual results to differ materially from those
anticipated in our forward-looking statements include, among other things: (i)
general economic, market and political conditions, including the performance
and fluctuations of the financial markets which may affect our ability to
raise capital or refinance existing indebtedness and the cost of doing so;
(ii) our ability to continue to satisfy the financial ratio and balance
requirements and other covenants of our debt agreements; (iii) our ability to
generate sufficient liquidity to meet our debt service obligations and other
cash needs; (iv) our ability to obtain adequate and timely rate increases on
our supplemental health products including our long-term care business; (v)
the receipt of required regulatory approvals for dividend and surplus
debenture interest payments from our insurance subsidiaries; (vi) mortality,
morbidity, the increased cost and usage of health care services, persistency,
the adequacy of our previous reserve estimates and other factors which may
affect the profitability of our insurance products; (vii) changes in our
assumptions related to the cost of policies produced or the value of policies
in force at the effective date of our emergence from bankruptcy; (viii) the
recoverability of our deferred tax asset and the effect of potential tax rate
changes on its value; (ix) changes in accounting principles and the
interpretation thereof; (x) our ability to achieve anticipated expense
reductions and levels of operational efficiencies including improvements in
claims adjudication and continued automation and rationalization of operating
systems, (xi) performance and valuation of our investments, including the
impact of realized losses (including other-than-temporary impairment charges);
(xii) our ability to identify products and markets in which we can compete
effectively against competitors with greater market share, higher ratings,
greater financial resources and stronger brand recognition; (xiii) the
ultimate outcome of lawsuits filed against us and other legal and regulatory
proceedings to which we are subject; (xiv) our ability to complete the
remediation of the material weakness in internal controls over our actuarial
reporting process and to maintain effective controls over financial reporting;
(xv) our ability to continue to recruit and retain productive agents and
distribution partners and customer response to new products, distribution
channels and marketing initiatives; (xvi) our ability to achieve eventual
upgrades of the financial strength ratings of Conseco and our insurance
company subsidiaries as well as the potential impact of ratings downgrades on
our business; (xvii) the risk factors or uncertainties listed from time to
time in our filings with the Securities and Exchange Commission; (xviii)
regulatory changes or actions, including those relating to regulation of the
financial affairs of our insurance companies, such as the payment of dividends
to us, regulation of financial services affecting (among other things) bank
sales and underwriting of insurance products, regulation of the sale,
underwriting and pricing of products, and health care regulation affecting
health insurance products; and (xix) changes in the Federal income tax laws
and regulations which may affect or eliminate the relative tax advantages of
some of our products. Other factors and assumptions not identified above are
also relevant to the forward-looking statements, and if they prove incorrect,
could also cause actual results to differ materially from those projected. All
written or oral forward-looking statements attributable to us are expressly
qualified in their entirety by the foregoing cautionary statement. Our
forward-looking statements speak only as of the date made. We assume no
obligation to update or to publicly announce the results of any revisions to
any of the forward-looking statements to reflect actual results, future events
or developments, changes in assumptions or changes in other factors affecting
the forward-looking statements.

SOURCE Conseco, Inc.

Tony Zehnder, Corporate Communications, +1-312-396-7086, Investors: Scott
Galovic, Investor Relations, +1-317-817-3228, both of Conseco, Inc.