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CCC Information Services Group Inc. Reports First Quarter Results and Strong Profitability in Core CCC U.S. Business

    CHICAGO--May 3, 2001--CCC Information Services Group Inc. , through its wholly-owned subsidiary CCC Information Services Inc., a leading provider of business solutions to the automobile claims industry, today announced the results for the first quarter of 2001 and reported strong profitability in CCC U.S.
    "We are pleased to report that CCC U.S., our core tools business, reported earnings ahead of expectations for the quarter with operating profits of $9.7 million, up 18.2% from last year," said Githesh Ramamurthy, Chairman and CEO of CCC Information Services Inc. "This is just one example of how focused we are on successfully leveraging our core competencies and assets. I am also pleased to announce the progress we are making at DriveLogic as we prepare to launch three products during the third quarter of 2001."
    Revenues for the quarter from continuing operations totaled $47.4 million, including CCC U.S. revenues of $46.4 million (up 3.2%). Operating income from continuing operations totaled $1.8 million, including CCC U.S. operating income of $9.7 million (up 18.2%), DriveLogic losses of $7.5 million, and CCC International losses of $0.5 million. Net losses from continuing operations totaled $2.8 million, or $0.13 per share, including equity in net losses from Enterstand of $2.7 million. Total net losses for the quarter of $9.8 million, or $0.45 per share, included a loss from discontinued operations of $7.0 million, or $0.32 per share, related to the exit of CCC Consumer Services Inc.

    First Quarter Results

-- CCC U.S. business continued to provide consistently strong earnings with operating income of $9.7 million, up 18.2% from first quarter 2000. EBITDA for the quarter was $12.2 million, up $1.8 million (17.2%) from prior year.
-- Revenues for CCC U.S. grew to $46.4 million, up $1.5 million from the first quarter of 2000.
-- Investment and progress continued at DriveLogic, including negotiation with a number of prospective customers for three products set for launch in third quarter 2001.
-- Announced the exit of CCC Consumer Services Inc., CCC's U.S.-based claims outsourcing and policy fulfillment business with a net earnings charge of approximately $7.0 million and anticipated cash costs related to the exit are projected at $3.4 million. This has been accounted for as a discontinued operation. For the full year 2000, CSI reported operating losses of $5.4 million.

    "The first quarter results from our core U.S. tools business are consistent with the expectations we set for 2001 last quarter, which targeted CCC U.S.' annual EBITDA of $40 million and operating margins of 20%. Currently, we are on pace with this plan," Ramamurthy continued. "Our progress in DriveLogic continues with the focus of delivering three products to market in the third quarter of 2001, resulting in slightly less revenue this year than originally anticipated. With auto repair costs on the rise, continuing profit pressures on insurance companies, and pressure increasing from consumers to provide the best service at lower costs, our customers are increasingly looking for solutions that provide efficiency and better service for consumers. It is this need that DriveLogic is positioned to fill. We are very encouraged from the activity over the last few months of its ability to fill this need."

    This release contains statements that constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and are subject to the safe harbor provisions of those sections and the Private Securities Litigation Reform Act of 1995. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, including those described in the company's filings with the SEC, and that actual results or developments may differ materially from those in the forward-looking statements, and startup businesses are inherently uncertain. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's analysis, judgment, belief or expectation only as of the date hereof. The company has based these forward-looking statements on information currently available and disclaims any intention or obligation to update or revise any forward-looking statement.

    About CCC
    CCC Information Services Inc., a wholly owned subsidiary of CCC Information Services Group , headquartered in Chicago, IL, a leading supplier of advanced software and communications systems to the automotive claims industry, including information and network services for a wide variety of claims management solutions. Its value-added, technology-based products and services increase efficiency and facilitate communication among more than 14,000 collision repair facilities, 350 insurance companies, and a range of industry participants. For more information about CCC Information Services Inc., visit our Web site at www.cccis.com; or contact Jeanene O'Brien at 312-229-3083, or Susan Jablonski at 312-229-2830.

    About DriveLogic
    DriveLogic is focused on providing Internet and wireless-enabled technology solutions to the auto claims and collision repair industries. DriveLogic has the unique market advantage of being able to leverage CCC's connectivity platforms, which already processes approximately 900,000 auto claims-related transactions per day. By developing market-driven technology solutions and capitalizing on the industry expertise, customer relationships and market leadership of CCC, DriveLogic aims to optimize efficiencies, bringing value to parties throughout the entire supply chain. For more information about DriveLogic, contact Michael Roberts at DriveLogic, 312-228-8278, or visit the DriveLogic Web site at http://www.drivelogic.com.

    Editor's note: A live Webcast to discuss the first quarter 2001 earnings results will be available on Thursday, May 3 at 11:00 a.m. EST at www.cccis.com/investor/confcall.htm.

    A recording of the conference call will also be available on Thursday, May 3, beginning at 2:30 p.m. EST, and will be available through May 11, at 12:59 a.m. EST. To access the replay, simply call 800-475-6701 within the U.S., or 320-365-3844 outside the U.S. The access code number is 581231. A replay of the Webcast will also be available at www.cccis.com/investor/confcall.htm.


                  CCC Information Services Group Inc.
    Consolidated Operating Results and Selected Balance Sheet Data
               (In thousands, except per share amounts)

                                                 Three Months Ended
                                                 ------------------
                                                      March 31,
                                                      ---------
                                                  2001         2000
                                                  ----         ----
                                              (Unaudited)  (Unaudited)
Revenues:
  CCC U.S.                                       $46,394      $44,935
  CCC International                                  996        2,745
                                                  ------       ------
Net revenue                                       47,390       47,680
                                                  ------       ------
Expenses:
  Production and customer support                  9,309       10,228
  Commissions, royalties and licenses              2,496        3,366
  Selling, general and administrative             22,982       19,425
  Depreciation and amortization                    3,102        2,530
  Product development and programming              7,743        5,741
                                                  ------       ------
Total operating expenses                          45,632       41,290
                                                  ------       ------

Operating income                                   1,758        6,390

Interest expense                                  (1,251)        (650)
Other income, net                                    286        4,377
CCC Capital Trust minority interest expense         (150)          --
Equity in losses of ChoiceParts                     (876)          --
                                                  ------       ------

Income(loss) before income taxes                    (233)      10,117

Income tax benefit(provision)                        105       (4,991)
                                                  ------       ------

Income(loss) from continuing operations
  before equity losses                              (128)       5,126

Equity in net losses of affiliates                (2,692)        (813)
                                                  ------       ------

Income(loss) from continuing operations           (2,820)       4,313

Income(loss) from discontinued operations,
 net of tax                                       (6,982)         222
                                                  ------       ------

Net income(loss)                                 $(9,802)     $ 4,535
                                                 =======      =======

Per Share Data:
---------------
Income(loss) per common share - basic from:
Continuing operations                            $ (0.13)     $  0.19
Discontinued operations                            (0.32)        0.01
                                                  ------       ------
Income(loss) per common share - basic            $ (0.45)     $  0.20
                                                 =======       ======
Income(loss) per common share - diluted from:
Continuing operations                            $ (0.13)     $  0.19
Discontinued operations                            (0.32)        0.01
                                                  ------       ------
Income(loss) per common share - diluted          $ (0.45)     $  0.20
                                                 =======       ======

Weighted average common shares outstanding
 - Basic                                          21,768       22,149
                                                  ======       ======
 - Diluted                                        21,768       22,811
                                                  ======       ======

                                                March 31, December 31,
                                                  2001        2000
                                                  ----        ----
Selected Consolidated Balance Sheet Data      (Unaudited)
-----------------------------------------
Total assets                                     $97,819      $97,859
Long-term debt                                   $53,000      $42,000
CCC Capital Trust preferred securities           $12,150      $    --
Stockholders' equity(deficit)                    $(5,473)     $ 2,118



                  CCC Information Services Group Inc.
              Consolidated Operating Results by Segments
                            (In thousands)

                                                Three Months Ended
                                                ------------------
                                                     March 31,
                                                     --------
                                                  2001        2000
                                                  ----        ----
                                               (Unaudited) (Unaudited)
CCC US with Shared Services
---------------------------
Net revenue                                      $46,394      $44,935
Operating expenses                               (36,715)     (36,746)
                                                  ------       ------
Operating income                                 $ 9,679      $ 8,189
                                                 =======      =======

DriveLogic
----------
Net revenue                                      $    --      $    --
Operating expenses                                (7,466)      (1,783)
                                                  ------       ------
Operating loss                                   $(7,466)     $(1,783)
                                                 =======      =======

CCC International
-----------------
Net revenue                                          996        2,745
Operating expenses                                (1,451)      (2,761)
                                                  ------       ------
Operating loss                                   $  (455)     $   (16)
                                                 =======      =======

CCC Consolidated - Continuing Operations
----------------------------------------
Net revenue                                      $47,390      $47,680
Operating expenses                               (45,632)     (41,290)
                                                  ------       ------
Operating income                                 $ 1,758      $ 6,390
                                                 =======      =======