DriverShield Contracts with Major Insurer

August 30, 2002

DriverShield Corp. of Ronkonkoma, N.Y. announced it has entered a contract with a major property and casualty insurer to test its online system for managing collision repairs for the insurer’s commercial 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.

“We have been given a very important opportunity with this well known insurer,” DriverShield president and CEO Barry 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.”

Installation of the DriverShield system is set to begin the first week in September and the impact on revenues should become apparent in the fourth quarter.

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