American Physicians Capital to Acquire RTW Inc.

November 14, 2001

American Physicians Capital Inc., a national provider of medical professional liability coverage and workers’ compensation, has agreed to acquire RTW Inc., a Minneapolis-based workers’ comp insurer.

American Physicians said it will pay about $32 million for RTW, or $3.10 for each of RTW’s 10.3 million shares outstanding. American Physicians expects to complete the acquisition by early 2002, and it said it would add to earnings in the first full fiscal year after completion. American Physicians also reported last Friday a third-quarter loss of $34.3 million, or $3.12 per share, in line with what the company announced on Monday, due to higher medical professional liability losses.

The company said it anticipates a loss for all of 2001 but improved results in 2002.

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