[HEALTH EXTRAS LOGO]




FOR IMMEDIATE RELEASE                            Contact: Michael P. Donovan
- ---------------------                            mdonovan@HealthExtras.com
                                                 HealthExtras, Inc.
                                                 301-548-2900

   HEALTHEXTRAS REPORTS RESULTS OF STOCKHOLDERS MEETING, APPOINTMENT OF A NEW
        INDEPENDENT DIRECTOR AND THE NAMING OF A CHIEF OPERATING OFFICER

ROCKVILLE, MD, JUNE 10, 2005 -- HEALTHEXTRAS, INC. (NASDAQ: HLEX), a pharmacy
benefit management company, today announced that at the annual meeting of
stockholders on June 7, 2005, HealthExtras' stockholders re-elected three
directors, David T. Blair, Frederick H. Graefe and Thomas J. Graf, to new three
year terms expiring at the annual meeting of stockholders in 2008. The
stockholders also ratified the appointment of PricewaterhouseCoopers LLP as the
Company's independent registered public accountants for the fiscal year ending
December 31, 2005.

In addition, the Company announced that Michael R. McDonnell has been appointed
to the Board of Directors and will serve as Chairman of the Audit Committee and
as the designated financial expert. With Mr. McDonnell's appointment, the Board
now has eleven members. Since September 2004, Mr. McDonnell has served as
Executive Vice President and Chief Financial Officer of MCG Capital Corporation
(NASDAQ: MCGC), a financial services company providing financing and advisory
services to a variety of middle market companies. From 2000 to 2004, Mr.
McDonnell served as Chief Financial Officer of EchoStar Communications
Corporation (NASDAQ: DISH) ("ECC"), and from 1986 to 2000, he was with
PricewaterhouseCoopers LLP, where he was admitted as a partner in 1996.

The Company also announced that Mr. Nick Grujich has been named Executive Vice
President and Chief Operating Officer. Mr. Grujich began his employment with
HealthExtras' subsidiary, Catalyst Rx, in February of 2005. From 1997 to 2005,
he served in various positions, including Director of Finance, Senior Director
of Finance, and Vice President of Finance and Administration, at Eckerd Health
Services, a division of Eckerd Corporation (which was a subsidiary of J.C.
Penney Company, Inc. until August 2004), specializing in pharmacy benefit
management and mail order pharmacy services. From 1994 to 1997, Mr. Grujich
served as Assistant Controller, Director of Finance, and Director of Practice
Management of Penn Group Medical Associates, an affiliate of Health America, a
subsidiary of Coventry Health Care, Inc.

ABOUT HEALTHEXTRAS (WWW.HEALTHEXTRAS.COM)
                    --------------------

HealthExtras, Inc., a pharmacy benefit management company, currently provides
benefits to over three million members. Its clients include self-insured
employers, including state and local governments, third-party administrators,
managed care organizations and individuals. The Company's integrated pharmacy
benefit management services marketed under the name Catalyst Rx include: claims
processing, benefit design consultation, drug utilization review, formulary
management, drug data analysis services and mail order services. Additionally,
the Company operates a national retail pharmacy network with over 55,000
participating pharmacies.


THIS PRESS RELEASE MAY CONTAIN FORWARD-LOOKING INFORMATION. THE FORWARD-LOOKING
STATEMENTS ARE MADE PURSUANT TO THE SAFE HARBOR PROVISIONS OF THE PRIVATE
SECURITIES LITIGATION ACT OF 1995. FORWARD-LOOKING STATEMENTS MAY BE
SIGNIFICANTLY IMPACTED BY CERTAIN RISKS AND UNCERTAINTIES DESCRIBED IN
HEALTHEXTRAS' FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION.