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Allstate Acquires Sterling Collision Centers

    NORTHBROOK, Ill., May 8 The Allstate Corporation
announced today that it has acquired Sterling Collision Centers
Inc., a leader in the auto body repair industry.  Sterling operates a network
of 39 collision repair stores in seven states and nine metropolitan locations.

    "This acquisition is part of Allstate's effort to create a differentiated
customer experience coupled with increased efficiencies and delivery of value
to the policyholder," said George Ruebenson, Allstate vice president for
claims and new chairman of the Sterling board of directors.

    "Sterling stores are very different than the typical auto collision repair
shop," continued Ruebenson.  "On average, they are three times larger and
repair four to five times more cars every month.  Consistent service and
repair quality are the hallmarks of Sterling."

    "We are very excited about this new relationship," said Sterling CEO
Jonathan McNeill.  "Allstate will be a terrific partner.  They share our
vision of expanding our model to other markets and are equally committed to
customer satisfaction.  Like Sterling, they understand that it is good
business to reduce repair times and improve the facilities' efficiencies while
delivering superior customer service."

    According to Ruebenson, the Sterling brand and their leadership team will
remain in place and no changes are planned.  "One of the reasons Allstate
acquired Sterling was because of the strength of the management team,"
continued Ruebenson.

    In the near term, the operation of the Sterling stores will change very
little.  They will continue to serve their current customer base.  Longer
term, as new Sterling stores are created, they will be designed to maximize
the service benefits to Allstate customers.

    "The greatest benefit Allstate and its customers get in this transaction
is the improved processes.  Together, Allstate and Sterling will eliminate the
redundancies that exist in today's auto collision repair process.  Customers
will now find themselves the beneficiaries of a coordinated repair process
with a dual focus on their requirements," added Ruebenson.

    "For example, Allstate's inspection and estimating processes help to
create efficiencies in the repair process while improving the policyholder's
overall experience.  This acquisition enables us to better serve the interests
of the policyholder while realizing efficiencies in making estimates and
repairing automobiles."

    "The acquisition gives Allstate customers easy access to a leader in the
auto collision repair industry.  While the choice of repairer is ultimately up
to the customer, the process of finding a high quality repairer does not have
to rest solely on the shoulders of the customer."

    Sterling will operate as a separate subsidiary of Allstate Non-insurance
Holdings, Inc. and will not be owned by the Allstate Insurance Company.  The
financial terms of the agreement were not disclosed.