X0202 4 2004-06-30 0 0001027974 PACIFICARE HEALTH SYSTEMS INC /DE/ PHS 0000082709 REED DAVID A 5995 PLAZA DRIVE CYPRESS CA 90630 1 0 0 0 Common Stock Units 2004-07-01 4 A 0 1003 0 A Common Stock 1003 5669 D Non-Qualified Stock Option (right to buy) 38.66 2004-06-30 4 A 0 14000 0 A 2004-06-30 2014-06-30 Common Stock 14000 14000 D The Common Stock Units were received in lieu of annual director fees as provided for under the Amended and Restated 2000 Non-Employee Directors Stock Plan of PacifiCare Health Systems, Inc. (the "Director Plan"). Under the Director Plan, non-employee directors may elect to defer a portion of their annual retainer fees (on a pre-tax basis) into Common Stock Units held in an account maintained for the director under the Director Plan. The number of Common Stock Units a director receives is based on the closing price of PacifiCare's common stock on the day the annual retainer fee would have been paid but for the deferral. When a director terminates his or her service as a director, a distribution from the director's Common Stock Unit account under the Director Plan is made in a single payment of shares of PacifiCare common stock. Represents an annual formula grant of an Option (right to buy) under the Amended and Restated 1996 Non-Employee Directors Stock Plan of PacifiCare Health Systems, Inc. (the "Director Plan") in a transaction exempt under Rule 16b-3. The Option is fully vested and exercisable on the date of grant (6/30/04); however, the underlying shares of PacifiCare common stock acquired upon exercise of the Option may not be sold or transferred within the first six months of the date of grant. By: Ellen K Erickson For: David A Reed 2004-07-02