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North East Shareholders Approve Merger

22 July 1999

North East Shareholders Approve Merger

    SCARBOROUGH, Maine, July 21 -- North East Insurance Company
today announced that its shareholders have approved the
company's proposed merger transaction with Motor Club of America
.
    Said Robert G. Schatz, Chairman and CEO of North East, "We very much
appreciate this support from our shareholders.  Of the total shares present at
yesterday's meeting, more than 99.6% voted in favor of the merger."
    The shareholders of Motor Club had approved the merger at their meeting on
July 12.  The transaction still needs approval from insurance regulators in
Maine and New York.
    North East Insurance Company is a property and casualty insurer located
in Scarborough, Maine.  Its common stock has been publicly traded since 1981.