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Letter to the Editor

CCC Information Services Group Inc. Reports First Quarter Results and Strong Profitability in Core CCC U.S. Business

CHICAGO -- CCC Information Services Group Inc. has announced the results for the first quarter of 2001 and reported strong profitability in CCC U.S.

"We are pleased to report that CCC U.S., our core tools business, reported earnings ahead of expectations for the quarter with operating profits of $9.7 million, up 18.2% from last year," said Githesh Ramamurthy, Chairman and CEO of CCC Information Services Inc. "This is just one example of how focused we are on successfully leveraging our core competencies and assets. I am also pleased to announce the progress we are making at DriveLogic as we prepare to launch three products during the third quarter of 2001."

Revenues for the quarter from continuing operations totaled $47.4 million, including CCC U.S. revenues of $46.4 million (up 3.2 percent). Operating income from continuing operations totaled $1.8 million, including CCC U.S. operating income of $9.7 million (up 18.2 percent), DriveLogic losses of $7.5 million, and CCC International losses of $0.5 million. Net losses from continuing operations totaled $2.8 million, or $0.13 per share, including equity in net losses from Enterstand of $2.7 million. Total net losses for the quarter of $9.8 million, or $0.45 per share, included a loss from discontinued operations of $7.0 million, or $0.32 per share, related to the exit of CCC Consumer Services Inc.

"The first quarter results from our core U.S. tools business are consistent with the expectations we set for 2001 last quarter, which targeted CCC U.S.' annual EBITDA of $40 million and operating margins of 20 percent. Currently, we are on pace with this plan," Ramamurthy continued. "Our progress in DriveLogic continues with the focus of delivering three products to market in the third quarter of 2001, resulting in slightly less revenue this year than originally anticipated. With auto repair costs on the rise, continuing profit pressures on insurance companies, and pressure increasing from consumers to provide the best service at lower costs, our customers are increasingly looking for solutions that provide efficiency and better service for consumers. It is this need that DriveLogic is positioned to fill. We are very encouraged from the activity over the last few months of its ability to fill this need."

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