The Aegis Group, Inc. Enters Into Five-Year Exclusive Agreement
4 March 1998
The Aegis Group, Inc. Enters Into Five-Year Exclusive Agreement with Banc One Insurance Services Corporation for Vehicle Service Contract Program
ATLANTA, March 4 -- Automobile Protection Corporation
(APCO), announced today that its wholly owned subsidiary, The
Aegis Group, Inc. has reached a definitive agreement with Banc One Insurance
Services Corporation (BOISC) to provide a full range of administrative
services for a vehicle service contract program to be marketed by BOISC to
automobile dealers on a nationwide basis. The product is to be called The
One(R) Care.
Aegis has been working with BOISC on a "pilot" marketing project since
early 1997 in the states of Wisconsin, Illinois and Iowa. Based on the
success of the pilot project, the companies have entered into a five year
exclusive agreement for Aegis to administer The One(R) Care program, which
will be marketed by BOISC nationally. The One(R) Care program will offer a
comprehensive range of competitively priced vehicle service contract products
for the new and used automobile markets.
Glen J. Milesko, President of BOISC, said, "This agreement is consistent
with our philosophy of marketing value added products to the automobile
dealers that Banc One has established significant relationships with over the
years. We strongly believe The One(R) Care will quickly establish itself as a
leader in the industry. We have carefully chosen Aegis as our partner in this
endeavor, based on our first hand experience of their outstanding customer
service philosophy and execution, as well as for their industry knowledge and
expertise."
Larry I. Dorfman, President/CEO of APCO said: "We began our relationship
with Banc One at the time they acquired Liberty National Bank in Louisville,
Kentucky, which was in 1995. Since then we have been working diligently to
create this national relationship and it is extremely exciting to have it come
to fruition. Banc One has an outstanding reputation in the automobile
business and as one of the largest lenders to the automotive market after the
manufacturer captives, they have relationships with thousands of dealers and
should achieve significant success in enrolling dealers in The One(R) Care
program."
Pat O'Brien, Vice President/Indirect Insurance marketing for BOISC, added:
"The choice of administrators was crucial for us. We require an administrator
which can react quickly and will provide our customers with the level of
service they expect from a product marketed by BOISC. After our first hand
experience with Aegis and their people, the choice was simple. We feel
strongly that the success enjoyed during the pilot project is an excellent
indication of how well accepted The One(R) Care program will be on a national
basis."
"Safe Harbor" Statement under the Private Securities Litigation Reform Act
1995: To the extent that this news release discusses financial projections,
information or expectations about our products or markets, or otherwise makes
statements about the future, our statements are forward looking and are
subject to a number of risks and uncertainties that could cause actual results
to differ materially from the statements made. These factors include, but are
not limited to, the competitive nature of the industry in which some
competitors have significantly greater financial resources and name
recognition than the Company, the availability of insurance coverage at
competitive rates and of insurance funds to make claims payments, the
Company's dependence on independent sales representatives, dealers and a major
automobile manufacturer, the cyclical nature of the automobile industry and
other risks detailed in the Company's Form 10-K that has been filed with the
Securities & Exchange Commission in connection with its 1996 year.
The Aegis Group, Inc., a subsidiary of APCO, is a leading administrator of
vehicle service contracts and mechanical breakdown insurance for insurance
companies, manufacturers and automobile dealers. Banc One Insurance Services
Corporation is an affiliate of BANC ONE CORPORATION.
SOURCE Automobile Protection Corporation
