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Letter to the Editor

CBSI & Response Insurance to Provide Banking Industry Value-Oriented Auto Insurance Program

WHITE PLAINS, N.Y. -- Veteran bank market specialist, CBSI and Response Insurance, a direct-to-the-customer auto insurer, have agreed to jointly market auto insurance through consumer banking institutions.

CBSI, located in Harrison, NY, will promote Response's auto insurance offer, which is provided at rates frequently 10 to 20 percent below those of other major carriers. The national program will enable banks to offer auto insurance quotations to their credit card, checking account and auto loan bank customers and will be communicated through direct response marketing, point of sale promotion and the Internet.

Response Insurance, a subsidiary of Direct Response Corporation, is headquartered in White Plains, NY and has a call center in northern California. The Company is currently marketing auto insurance in 11 major states and anticipates distribution in 24 states by year-end. Response is positioning itself nationally by focusing on safe, responsible drivers and offering competitive rates and outstanding customer service. The total US auto insurance market is estimated at $125 billion in premium and, according to Conning & Co., the direct response segment of the market will increase from 12 percent in 1998 to a projected 16 percent in 2000, representing a gain of $6.4 billion in premium.

CBSI will present the value offer of Response Insurance to consumer banking organizations with focus on mid-sized card and checking account issuers.

Response Insurance, a privately held auto insurance company, was founded in 1996 to provide consumers lower priced coverage, focusing on insuring responsible drivers with better driving records and by reaching consumers directly, rather than through commissioned agents. The Company was financed with an equity commitment of $310 million from an investor group led by Morgan Stanley Dean Witter Capital Partners, the private equity unit of Morgan Stanley Dean Witter & Co.

CBSI, founded in 1972, is a consumer insurance program management organization specializing in providing value added programs to retail financial organizations.

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