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Letter to the Editor

Mystery Large National Insurer Signs Agreement With DriverShield

After 90-Day Trial, Contract Will Renew Automatically for Three Years Thursday August 29, 9:42 am ET DriverShield Corp. reported that one of the nation's largest property/casualty insurers has signed a contract to test DriverShield's Internet-based system for managing collision repairs for its commercial insurance line of business.

The insurer will run a 90-day trial and at the end of that time, if the system has performed satisfactorily, the agreement will automatically convert to an exclusive, three-year, nationwide contract.

"This agreement represents an important forward step toward assuring the credibility and future of our CRM business," said Barry Siegel, Chairman and CEO of DriverShield. "We anticipate this agreement will add a modest number of claims to the rising number of claims we are handling, but more importantly it sends a very positive message to the industry about the acceptance, value and quality of our CRM solution."

"We have been given a very important opportunity with this well known insurer," Siegel said, "but because the agreement allows for a 90-day test prior to the engagement of a three-year commitment, we believe it is in the best interests of all concerned to keep the name of the client confidential during the trial period. However, we wanted our shareholders to know that we have been given an opportunity to prove ourselves with another national leader. A successful outcome with this commercial unit has the potential to get us a trial with the insurer's personal lines unit, with which we have already had discussions. The personal lines unit has significantly more collision claims than the commercial unit and has the potential to skyrocket our revenues in 2003 should that unit participate in the agreement as well. The client and we have agreed, that should the test results prove positive, an additional announcement disclosing the name of the insurer and more details would be forthcoming."

Installation of the DriverShield system is set to begin the first week in September.

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