Summary Notice of Pendency of Class Action and Proposed Settlement

NORFOLK, Va., Dec. 28 /PRNewswire/ -- The following statement is being issued by the parties listed below regarding the Amerigroup Corporation Securities Litigation.

                       UNITED STATES DISTRICT COURT
                       EASTERN DISTRICT OF VIRGINIA
                            (NORFOLK DIVISION)

  ILLINOIS STATE BOARD OF                 CIVIL ACTION NOS.:  2:05-CV-701
  INVESTMENT,                             (HCM-FBS); 2:05-CV-578 (HCM-FBS);
  individually and on behalf of           2:05-CV-599 (HCM-FBS); 2:05-CV-600
  all others similarly situated,          (HCM-FBS); 2:05-CV-601(HCM-FBS)
  Plaintiff,                              (Consolidated)
  vs.
  AMERIGROUP CORPORATION, et al.
  Defendants.

  SUMMARY NOTICE OF PENDENCY OF CLASS ACTION AND PROPOSED SETTLEMENT

TO: ALL PERSONS WHO PURCHASED OR OTHERWISE ACQUIRED SHARES OF AMERIGROUP CORPORATION ("AGP") COMMON STOCK DURING THE PERIOD FROM FEBRUARY 16, 2005 THROUGH SEPTEMBER 28, 2005, INCLUSIVE

YOU ARE HEREBY NOTIFIED, pursuant to Rule 23 of the Federal Rules of Civil Procedure and an Order of the Court, that the above-captioned action has been certified as a class action for settlement purposes only and that a Settlement valued at $5 million has been proposed. A hearing will be held before the Honorable Henry Coke Morgan, U.S.D.J., in the Walter E. Hoffman United States Courthouse, 600 Granby Street, Norfolk, Virginia 23510, at 11:00 a.m., on February 5, 2007 to determine whether the proposed Settlement should be approved by the Court as fair, reasonable, and adequate, and to consider the application of Lead Counsel for attorneys' fees and/or reimbursement of expenses.

IF YOU ARE A MEMBER OF THE CLASS DESCRIBED ABOVE, YOUR RIGHTS WILL BE AFFECTED AND YOU MAY BE ENTITLED TO SHARE IN THE SETTLEMENT FUND. If you have not yet received the full printed Notice of Pendency of Class Action, Proof of Claim and Release form, and Plan of Allocation, you may obtain copies of these documents by contacting:

  AMERIGROUP Corporation Securities Litigation
  c/o The Garden City Group, Inc.
  Claims Administrator
  P.O. Box 9091
  Dublin, OH 43017-0991
  (800) 601-7495

Inquiries, other than requests for the forms of Notice and Proof of Claim and Release may be made to Plaintiff's counsel:

  Edward J. Powers, Esq.
  Vandeventer Black LLP
  500 World Trade Center
  Norfolk, Virginia 23510-1699

  Andrew J. Entwistle, Esq.
  Entwistle & Cappucci LLP
  280 Park Avenue
  26th Floor West
  New York, New York 10017

  PLEASE DO NOT CONTACT THE COURT OR CLERK'S OFFICE FOR INFORMATION.

To participate in the Settlement, you must submit a Proof of Claim and Release form no later than March 20, 2007. To exclude yourself from the Class, you must submit a request for exclusion postmarked no later than January 26, 2007.

If you are a Class Member, in order to share in the distribution of the Net Settlement Fund, you must submit a Proof of Claim and Release form postmarked by March 20, 2007 establishing that you are entitled to recovery in the manner and form explained in the detailed Notice referred to above. IF YOU ARE A CLASS MEMBER AND DO NOT EXCLUDE YOURSELF, OR DO NOT SUBMIT A PROPERLY EXECUTED PROOF OF CLAIM, YOU WILL NOT SHARE IN THE SETTLEMENT BUT YOU WILL BE BOUND BY THE ORDER AND FINAL JUDGMENT OF THE COURT, INCLUDING A RELEASE OF AGP AND OTHERS FROM LIABILITY.

Any objection to any of the matters to be considered at the Fairness Hearing must be filed with the Clerk of the Court for the Eastern District of Virginia, Norfolk Division, Walter E. Hoffman United States Courthouse, 600 Granby Street, Norfolk, Virginia 23510 and mailed or delivered such that it is received by each of the following no later than January 26, 2007:

  Edward J. Powers, Esq.              Jay B. Kasner, Esq.
  Vandeventer Black LLP               Skadden, Arps, Slate,
  500 World Trade Center                Meagher & Flom LLP
  Norfolk, Virginia 23510-            Four Times Square
  1699                                New York, New York, 10036

  Andrew J. Entwistle, Esq.           Richard L. Brusca, Esq.
  Entwistle & Cappucci LLP            Skadden, Arps, Slate,
  280 Park Avenue                       Meagher & Flom LLP
  26th Floor West                     1440 New York Avenue, NW
  New York, New York 10017            Washington, DC 20005

  Stephen E. Noona, Esq.
  Kaufman & Canoles, P.C.
  150 West Main Street
  Suite 2100
  Norfolk, Virginia 23510

  PLEASE DO NOT CONTACT THE COURT REGARDING THIS NOTICE.

  Dated: November 29, 2006 and December 7, 2006    BY ORDER OF THE COURT
                                                   HENRY COKE MORGAN
                                                   U.S. DISTRICT JUDGE