[PACIFICARE LOGO]
[AMS LOGO]

For Immediate Release

News Release
- -------------------------------------------------------------------------------

CONTACTS:

Cliff Bowers                     Dan Yarbrough              Tyler Mason
AMZ Investor/Media Relations     PHS Investor Relations     PHS Media Relations
Cliff.Bowers@eAMS.com            Dan.Yarbrough@phs.com      Tyler.Mason@phs.com
- ---------------------            ---------------------      -------------------
(920) 661-2766                   (714) 226-3540             (714) 226-3530

                  American Medical Security Group Shareholders
                         Approve Merger with PacifiCare

         GREEN BAY, Wis.- December 2, 2004 - Shareholders of American Medical
Security Group, Inc. (NYSE:AMZ) (AMS) today approved the company's proposed
merger with PacifiCare Health Systems, Inc. (NYSE:PHS).
         Approximately 61.4% of the shares of the company's common stock
outstanding at the close of business on the record date of October 27, 2004,
and entitled to vote at the special meeting of the company's shareholders held
today was cast in favor of approving the proposed merger. An affirmative vote
of the majority of these shares was required in order to approve the merger.
         The company expects the merger to be completed promptly after all
other closing conditions, including regulatory matters, are satisfied. On
December 1, 2004, the Office of the Commissioner of Insurance for the State of
Wisconsin issued an order approving the proposed merger.
         American Medical Security Group, through its operating subsidiaries,
markets health-care benefits and insurance products to small businesses,
families and individuals. Insurance products of American Medical Security Group
are underwritten by American Medical Security Life Insurance Company. AMS
serves customers nationwide through partnerships with professional, independent
agents and quality health care providers.
         PacifiCare Health Systems is one of the nation's largest consumer
health organizations with more than 3 million health plan members and
approximately 10 million specialty plan members nationwide. PacifiCare offers
individuals, employers and Medicare beneficiaries a variety of consumer-driven
health care and life insurance products. Currently, more than 99 percent of
PacifiCare's commercial health plan members are enrolled in plans that have
received Excellent Accreditation by the National Committee for Quality
Assurance (NCQA). PacifiCare's specialty operations include behavioral health,
dental and vision, and complete pharmacy and medical management through its
wholly owned subsidiary, Prescription Solutions. More information on PacifiCare
Health Systems is available at pacificare.com.

                                   # # # # #

Cautionary Statement: Some of the statements contained in this press release
concerning the proposed merger are "forward-looking" statements within the
meaning of the Private Securities Litigation Reform Act of 1995. Generally,
forward-looking statements express expectations for or about the future, rather
than historical fact. Forward-looking statements are subject to inherent risks
and uncertainties that may cause actual results or events to differ materially
from those contemplated by such statements. Such risks and uncertainties
include, among others, the timing (including any possible delays) and receipt
of regulatory approvals (including any conditions, limitations or restrictions
placed on these approvals) of the proposed merger, and the risk that one or
more governmental agencies may deny approval of the proposed merger; and other
factors that may be referred to in the reports filed by AMS and PacifiCare with
the Securities and Exchange Commission from time to time. Forward-looking
statements made in this press release express expectations only as of the date
they are made. Neither AMS nor PacifiCare undertakes any obligation to update
or revise such statements as a result of new information or future events.