PRESS RELEASE




      CATALYST RX ANNOUNCES TENTATIVE AWARD OF PHARMACY BENEFIT CONTRACT BY
                              THE STATE OF MARYLAND

       FIVE-YEAR AGREEMENT TO COVER MORE THAN 200,000 STATE BENEFICIARIES

ROCKVILLE, MD, MARCH 21, 2006 -- HEALTHEXTRAS, INC. (NASDAQ: HLEX) - The Company
has been notified by the Maryland Department of Budget and Management that it
will recommend award of a five-year pharmacy management contract to
HealthExtras' pharmacy benefit management subsidiary, Catalyst Rx to the
Maryland Board of Public Works. Catalyst Rx was recommended following the
state's competitive-bidding process, which commenced in October of 2005. The
contract must be approved by the Maryland Board of Public Works. Under the terms
of the contract, Catalyst Rx would administer a comprehensive pharmacy benefit
program for more than 200,000 members and their eligible dependents.

"The Department of Budget and Management's recommendation of Catalyst Rx
reflects continued success in our efforts to offer innovative solutions to
managing prescription benefits," said David T. Blair, Chief Executive Officer of
HealthExtras.

This contract would be modestly accretive to the Company's current 2006 earnings
guidance. Certain implementation costs and pre-operation expenses will be
incurred prior to an anticipated third quarter effective date. HealthExtras will
provide an update on these and other corporate developments in conjunction with
its next regularly scheduled quarterly conference call now scheduled for April
26, 2006.


ABOUT HEALTHEXTRAS (WWW.HEALTHEXTRAS.COM)
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HealthExtras, Inc. is a full-service pharmacy management company. 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.

CONTACT:

HealthExtras, Inc.
Michael P. Donovan, 301-548-2900
mdonovan@HealthExtras.com
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