dimensionsof Leadership in Philanthropy

AETNA ANNUAL GIVING REPORT 2005

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Aetna remains at the vanguard of integrating philanthropic and business strategies by focusingcommunity efforts where our expertise and business practices can have a greater impact onAmerica’s health. We have strengthened our business leadership by seeking solutions to healthdisparities, improving end-of-life care and addressing the mind-body connection in treatingdepression. Our funding partnerships with physicians, hospitals, educational institutions andcommunity health providers in parallel program areas intensify the benefits our innovative business practices bring to the community.

Aetna employees devote considerable time, mind, muscle and heart to meet community needs.With Aetna’s strong support, over 35 Volunteer Councils make a difference in regions throughoutAmerica. We are very proud that their enduring community participation has earned one of six2005 Awards for Excellence in Workplace Volunteer Programs from the Points of Light Foundationand Volunteer Center National Network.

Aetna’s return to profitability is benefiting communities from the fundamental effects of businesshealth – good-paying jobs, increased tax revenues and other elements that enhance social stability.Our success has allowed us to increase giving, providing nonprofits with vital funds to improvequality of life. The long-term effects of philanthropic consistency are apparent in Connecticut,Aetna’s birthplace. The company’s perseverance in corporate responsibility for over 150 yearsenhances financial security, health, education and cultural enrichment for state residents andcontinues to shape our company’s character.

More than ever, success in business demands a broad perspective. Aetna embraces diversity as acore value and integrates it into all aspects of our business – workplace policies, purchasingpractices, market initiatives and community grants. The resulting climate of greater diversityenhances our thinking and helps us reach out more effectively to all of our constituents.

Aetna is committed to working with our community partners to deepen our philanthropiccommitment as leaders in shaping a healthier America.

John W. Rowe, M.D.Executive ChairmanAetna Inc.

Ronald A. WilliamsChief Executive Officer and President Aetna Inc.

John W. Rowe, M.D., Marilda L. Gándara,Aetna Foundation President, and Ronald A. Williams (left to right)

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Partnership

HOSPITAL PARTNERSHIPS

Diversifying Nursing – A $500,000 Aetna grant to Adventist Health is providingeducational assistance for ethnically diverse nursing students in parts of California facingnursing shortages.

Improving Children’s Mental Health – With the Aetna Foundation’s $300,000 grant,Children’s Hospital Boston is launching a comprehensive evaluation of its innovativeChildren’s Hospital Neighborhood Partnership Program, a community-based model formental health outreach and care.

Easing Tragedy – We’re helping the John H. Stroger Jr. Hospital in Illinois change thenature of the last moments of life for trauma patients and their loved ones. Our$175,000 grant is funding the development of a culturally appropriate palliative andend-of-life care program that will serve as a model for urban trauma units.

Healing Hearts – At Middlesex Hospital in Connecticut, our $50,000 grant is givingheart patients self-management tools to smooth the transition from the hospital to theirfirst follow-up with a physician – reducing the likelihood of relapse and re-hospitalization.

Enlightening Hospice – The OhioHealth Foundation, which encompasses severalhospitals, is applying our $225,000 grant to improve hospice care within the Hispanic,Asian and Somali communities. The project will enable hospice workers to learnculturally enlightened skills from indigenous healers and health professionals whilesharing information about end-of-life options and ways to access appropriate care.

Leaders bring people together, triggering a powerful convergence of ideas and resources that deliver success beyond what any one of them could achieve alone.

Aetna is a leader in seeking ways to improve the health and well-being of all Americans –analyzing data to identify disparities in health care, enhancing access to quality healthinformation, and improving the ways in which we diagnose mental illness and deliver end-of-life care. In 2005, we were pleased to partner with the following nonprofitorganizations – among many others – to build a stronger health care system.

“I was thrilled to present theOhioHealth Foundation with its grant and am extremely proud to work for a company that is committed to helping local organizations in such a substantial fashion.”

Michelle Mathieu Aetna Ohio Network Market Head

Leading Change in the Health Care System

To promote dialogue on ways to improve healthcare in America, the Aetna Foundation published a collection of essays from Aetna’s 2000-2004Annual Reports, which were authored by some ofthe nation’s most respected health care experts.

aetna.com/public_policy_issues/data/essays.pdf

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COMMUNITY HEALTH CARE PARTNERSHIPS

We continue to forge productive partnerships with community health leaders across thenation through our Regional Grants Program.

ACADEMIC PARTNERSHIPS

Technology-Enhanced Care – A $650,000 grant to Morehouse School of Medicine inGeorgia is fostering collaboration with its community partner, West End MedicalCenter, on an intervention project to demonstrate how health information technologiesand nurse-mediated care can help improve diabetes care quality.

End-of-Life Guidance – Duke Institute on Care at the End of Life in North Carolina isusing our $150,000 grant to provide culturally competent training to health providersand caregivers who offer palliative and end-of-life care to African-American patients andtheir families.

Going the Distance – Barry University in Florida is using our $35,000 grant to supportphysician assistant trainees as they venture forth in a Medivan to remote sites, where theylearn to deliver care among diverse cultures.

Preventing Mental Illness – With a $50,000 grant, the Mental Illness Prevention Centerat New York University School of Medicine is looking at the complex root causes of mentalillness to aid in early detection and prevention of depression.

“Through the Mayor’s Healthy Communities Initiative, a powerful coalition ofpublic and private entities is striving to help Hartford’s uninsured access themedical home and services they need. Aetna has been a terrific partner in thiseffort – delivering invaluable knowledge and resources that are helping us tacklethis complex effort to link hospitals and neighborhood clinics, and providebilingual assistance so we can better refer, track and monitor patients.”

Eddie A. PerezMayor

$10 MillionCommitted by Aetna and theAetna Foundation since 2001to help end racial and ethnicdisparities in health care.

■ Defeating Diabetes. $30,000 to theHealth Promotion Council for the GreaterPhiladelphia Diabetes Coalition.

■ Prompting Smiles. $37,000 to theMiami Children’s Museum for AetnaBright Smiles Program.

■ Surfacing Teen Depression. $30,000 to the Mental Health Association ofGreater Dallas.

■ Reaching and Teaching. $25,000 toClinica Tepeyac in Denver.

■ Helping Asian Girls. $40,000 to theVietnamese Youth Development Center in San Francisco.

■ Training Health Professionals. $25,000 to New Jersey Health Decisions.

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Leadership extends beyond setting goals and crafting strategies – it stepsforward to act, taking personal responsibility for making things happen.

Aetna’s employees have embodied this participatory form of leadership since thecompany’s earliest days. Yet in 2005, this generous spirit was brought to a new level –reaching out to people around the world and setting new records for giving. Their hardwork was recognized through the gratitude of those they helped and a prestigious awardfrom the Points of Light Foundation.

Aetna Volunteer Program Honored – In August, the Points of Light Foundationhonored Aetna’s culture of caring with an award for Excellence in WorkplaceVolunteering. The award cited how our multifaceted volunteer program – AetnaEmployees Reaching Out – supports employee participation in the community. Theprogram’s three-pronged approach emphasizes employee volunteerism on serviceprojects, membership on boards of nonprofit organizations, and blood drives.

Since 2003, Aetna employees have logged nearly 700,000 volunteer hours. In bringingtheir talent to the community, these volunteers develop important work-related skills.Among volunteers surveyed by Aetna in 2005, 72 percent reported improved leadershipskills and 67 percent reported improved diversity skills stemming from their communitywork. Surveys also indicate that the majority of volunteers have more positive attitudestoward their workplaces, connect better with colleagues and feel more at home in theircommunities.

Giving Above and Beyond – In a year when natural disasters injected the term “givingfatigue” into the national dialogue, Aetna employees surpassed their traditionalcharitable goals. Beyond their donations to community causes, employees heeded thecall for relief due to the 2005 tsunami, earthquakes and hurricanes, giving a total of morethan $5 million. With the Aetna match, their generous donations translated into morethan $10 million.

In addition, employees collected and shipped necessities to devastated areas, and in somecases provided on-the-ground assistance. Such was the case with Bob Fout of NewAlbany, Ohio, who spent nine days working alongside survivors in the tsunami-devastated Banda Aceh province of Indonesia. Bob and several friends helped to build amodel community shelter and greenhouse, and also assisted with planting fields.

In 2005, the Points of Light Foundationhonored Aetna’s High Point office as a “Daily Point of Light.” The North Carolinaoffice represents 3 percent of Aetnaemployees, yet accounts for 13 percent of Aetna’s group volunteer hours.

Participation

Aetna Volunteer Councils are the enginesof Aetna’s participation in communitiesacross the nation. Council members – suchas these from Middletown, Conn., seencelebrating the Points of Light Award –plan events and mobilize volunteers todeliver distinctive results for local causes.

“The devastation is immense. It’shard to put it into words. I cannoteven begin to imagine how manyyears it will take for things to returnto normal.”

Bob FoutAetna Volunteer

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Perseverance

Sustaining Healthy Commitments – Over the last 15 years, Aetna has committed over$800,000 to Saint Francis Hospital and Medical Center for the creation and ongoingsupport of the Aetna Foundation Children’s Center, which helps prevent and treat childabuse, and sponsorship of the hospital’s annual fund-raising gala, MIRACLES.

Getting Care at School – Aetna was proud to award $150,000 to help expand the healthclinic at Hartford’s Bulkeley High School. Students are able to seek out clinic staff duringschool hours, accessing what are often the only medical services available to them.

Strengthening Latino Health – $25,000 is helping the Hispanic Health Councilpromote breast-feeding and its health benefits for babies. Over the past decade, Aetnaand the Aetna Foundation have supported the Council’s disease-prevention initiatives,diversity training, and community health fairs.

Generating Excitement through Arts – Aetna employees showed their appreciation forthe arts in 2005 by pledging more than $75,000 to the Greater Hartford Arts Council.Aetna’s match will double this generous support of the region’s 150 arts and heritageorganizations. We also continued our eight-year sponsorship of Aetna First Thursdays,which promotes Hartford-area cultural activities each month.

Community Giving – As a founding supporter and ongoing contributor, Aetna hashelped the Middlesex County Community Foundation grow into a vital resource that issupporting local services and programs, and building a stronger Middlesex community.

“As I was leaving the building, anelderly woman commented on myfood bag and I said, ‘Actually, I’mdelivering for Meals on Wheels and I have an extra meal today. Wouldyou like it?’ She said yes, and startedpulling out dollar bills from herpocket. I said, ‘Oh, no – no charge.’ It made her day and mine, too.”

John AlexanderAetna Volunteer

The true effects of leadership are not always immediate: they accumulate theirvalue over decades or even centuries, quietly enriching our communitiesthrough their enduring, positive momentum.

In Aetna’s birthplace of Connecticut, where the majority of our employees live and work,we continue to innovate in the realm of corporate responsibility. Our philanthropicimpact is at its broadest here, spanning health, education, neighborhood revitalizationand the arts. In 2005, Aetna and the Aetna Foundation awarded more than $5.9 millionto organizations in Connecticut, including over $3.9 million in Hartford.

Kim Demers and John Alexander areamong 18 Aetna Hartford-area Meals onWheels volunteers. For more than 35 years,Connecticut employees have been providingfood and welcome social interaction to thedisabled, homebound and elderly throughthis program, which is run by the VisitingNurses Association.

Accolades FoundationAwardThe Hartford Business Journalhonored Aetna for corporatepublic involvement in 2005.

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Honoring a Legacy – The Voice of Conscience Award is a lasting tribute to the lateArthur R. Ashe Jr., who served on the Aetna and the Aetna Foundation boards ofdirectors for more than a decade.

Former First Lady Rosalynn Carter received the 2005 Aetna Voice of Conscience Awardin recognition of her work as a longtime mental health advocate and her commitmentto improving the lives of people around the world. To honor Mrs. Carter, the AetnaFoundation made a $50,000 grant to the Carter Center’s Mental Health Program.

Alan Karpinski of our High Point, N.C., office was the 2005 employee recipient of theaward. Alan was recognized for his passionate devotion to community service, includingthe local Multiple Sclerosis Society’s annual Tour to Tanglewood bike ride, in which Alanand his team raised more than $27,000. Coworkers say the kindhearted Alan “gives lightto everyone he comes in contact with.”

Enlivening History – The Aetna Foundation awarded $250,000 to the Charles H. WrightMuseum of African American History in Detroit for sponsorship of an exhibit that takesvisitors on a journey from prehistoric Africa, past early civilizations and the eras ofslavery and emancipation – highlighting the crucial roles African-American families,institutions and traditions have played.

Celebrating Women – In 2005, the Hartford Region YWCA marked the 10th anniversaryof its In the Company of Women Luncheon, which Aetna has steadfastly sponsoredsince its beginning, supporting the YWCA’s mission of eliminating racism andempowering women and girls.

Leaders make realistic assessments of their environment, identify challengesclearly, and then bring together diverse people and ideas to develop solutions.

Aetna has long been a pioneer in exploring the convergence of diversity and business asit affects our workforce, markets and communities. In addition to forming the basis formany of our health grants, diversity continued to play a major role in many other facetsof our philanthropic activities in 2005.

Perspective

“I am honored to receive the Voice of Conscience Award and am deeplygrateful to Aetna for the work you’re doing to improve depressionmanagement. You’re not only helpingpeople with mental illnesses, but alsoproviding greater resources for peoplewho care for them, which is soimportant.”

Former First Lady Rosalynn Carter

Executive Chairman John W. Rowe, M.D.,presents former First Lady Rosalynn Carterwith the 2005 Aetna Voice of ConscienceAward.

2005 Diversity Annual Report

An overview of Aetna’s diversity-relatedinitiatives in the workplace, community and marketplace.

aetna.com/diversity/index.htm

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2005 Total Giving

Health$9.43 million

Volunteerism and Matching Grants $4.83 million

Civic and Community $2.22 million

Education$1.18 million

Arts and Culture$690,000

Diversity $650,000

AETNA FOUNDATION BOARD OF DIRECTORS

Aetna Inc. Board MembersMolly J. Coye, M.D., Chief Executive Officer, Health Technology Center*Jeffrey E. Garten, Juan Trippe Professor in the Practice of International

Trade, Finance and Business, Yale UniversityEarl G. Graves, Chairman, Earl G. Graves, Ltd.;

Publisher, Black Enterprise magazineJoseph P. Newhouse, John D. MacArthur Professor of Health

Policy and Management, Harvard University

Aetna ManagementJohn W. Rowe, M.D., Executive ChairmanRonald A. Williams, Chief Executive Officer and PresidentAndrew Allocco, Senior Vice President, Network and Provider Services*Alan M. Bennett, Senior Vice President and Chief Financial OfficerRoger Bolton, Senior Vice President, CommunicationsTroyen A. Brennan, M.D., M.P.H., Senior Vice President

and Chief Medical Officer*Mary Claire Bonner, Vice President, Small and Middle Market Business Mary C. Fox, Vice President, Aetna Behavioral HealthFelicia F. Norwood, Vice President, Aetna Medicaid*Cheryl Pegus, M.D., M.P.H., Head, Clinical Product,

Medical Product Business Unit

AETNA FOUNDATION STAFFMarilda L. Gándara, PresidentSharon C. Dalton, Vice PresidentChristopher A. Montross, Vice President

and Assistant ControllerEileen R. Campbell, Program AssociateA. Paula Frazão, Program AssociateAnn R. Laframboise, Program AssociateMelenie L. Orendorf, Program AssociateDavid C. Wilmot, Executive Assistant

* Term commences April 27, 2006

$19 MillionGrants and sponsorshipscontributed by Aetna and the Aetna Foundation in 2005.

Aetna Corporate ResponsibilityA demonstration of Aetna’s leadership,commitment and values through communityinvolvement and social responsibility. aetna.com/aboutaetna/corporate_responsibility.htm

aetna.com/foundation

Aetna Public Policy IssuesA library of issues briefs and position paperson critical health care issues facing our industryand the nation. aetna.com/public_policy_issues/index.htm

AETNA WEB SITE RESOURCES

Photography: Bill De Kine; Carmine Filloramo; Michael O'Brien; The Carter Center/D. Hakes

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