WebMD COMPLETES ACQUISITION OF ViPs, INC.

Elmwood Park, NJ - August 11, 2004 - WebMD Corporation (Nasdaq: HLTH) today announced that it has completed the acquisition of ViPS, Inc., a privately held provider of healthcare information technology from Cornerstone Equity Investors, LLC, a private equity firm located in New York, in a transaction valued at $160 million. ViPS develops and provides a full range of solutions for systems support, claims processing, provider performance measurement, quality improvement, fraud prevention, disease management and predictive modeling.

ViPS' Government Solutions Group provides technology services and project personnel to Federal and State agencies, such as the Centers for Medicare and Medicaid Services (CMS) as well as to key information services contractors for those agencies. ViPS' personnel provide systems support for data warehousing, claims processing, decision support, and fraud detection. In addition, ViPS' consultants assess workflow, design complex database architectures, perform data analysis and analytic reporting functions for agencies and contractors in the public sector.

"With the Administration's focus on modernizing the healthcare system, there's never been a more opportune time to simplify the business of healthcare while improving the quality of care," said Roger Holstein, CEO of WebMD Corporation.

"ViPS' extensive experience in the government sector, when combined with WebMD's full suite of end-to-end transaction management capabilities, will enable us to expand our collective offerings to help CMS and other government agencies accelerate their cost reduction efforts and improve the effectiveness of their systems and workflow," said Jenny G. Morgan, President and CEO of ViPS.

Utilizing the latest in web-enabled technology, ViPS' Health Payer Solutions Group develops data warehouses and tools for disease management, predictive modeling, provider performance, HEDIS(R) quality improvement, healthcare fraud detection and financial management. ViPS provides consulting expertise and outsourcing services to help its customers, including commercial health plans and over 65% of the nation's BCBS plans, monitor clinical and financial results in order to predict risk, determine the most effective treatments and evaluate provider networks.

Mr. Holstein continued: "WebMD's acquisition of ViPS will strengthen our Personal Health Manager services for our payer and employer customers. The integration of ViPS' capabilities will enable these customers to better communicate with their members and providers about treatment and utilization issues to improve the effectiveness of care."

The purchase price for the acquisition of ViPS is $160 million, including certain assumed liabilities, and will be paid in cash. The purchase price is subject to customary post-closing adjustments.

For the twelve months ended December 31, 2003, unaudited results for ViPS included revenues of approximately $59 million, and earnings before interest, taxes, depreciation and amortization of approximately $17 million.

About WebMD

WebMD Corporation provides services that help physicians, consumers, providers and health plans navigate the complexity of the healthcare system. WebMD's products and services streamline administrative and clinical processes, promote efficiency and reduce costs by facilitating information exchange, communication and electronic transactions between healthcare participants. WebMD maintains the following divisions: WebMD Health is a leading provider of online information, educational services and communities for physicians and consumers. WebMD Medical Manager is a leading provider of physician practice management software and related services. WebMD Envoy is a leader in payer and healthcare provider transaction processing and reimbursement cycle management services. Porex is a developer, manufacturer and distributor of proprietary porous plastic products and components used in healthcare, industrial and consumer applications.

About VIPS, Inc.

VIPS delivers innovative solutions that simplify the business of healthcare. Headquartered in the Baltimore-Washington, DC metro area, VIPS offers advanced care management, claims management and risk management solutions. The company also delivers exceptional value with its outsourcing and Web-enabled services. VIPS technology and services, combined with the company's business and clinical specialists, deliver a total business solutions approach helping healthcare organizations increase productivity, enhance bottom-line results and improve quality of care. For more information, visit www.vips.com.

About Cornerstone Equity Investors, LLC

Cornerstone Equity Investors, LLC is one of the largest and most experienced private equity firms in the United States. Since 1984, the professionals of Cornerstone have raised over $1.2 billion in committed capital. Cornerstone focuses on lower middle market leveraged buyouts of corporate divisions, closely held private companies and micro and small capitalization public companies in the business services, consumer, healthcare and technology manufacturing industries. For more information, please visit www.cornerstone-equity.com.