driversshield.com Corp. Reports Strong Revenue Growth and Fifth Consecutive Quarter of Profitable Operations

    PLAINVIEW, N.Y., May 16 driversshield.com Corp. reported today that sales rose 37% in
the first quarter of 2001 and that the Company was profitable for the fifth
straight quarter, despite a non-recurring, non-cash charge to earnings and
significantly increased sales and marketing expenditures for its new
driversshield.com CRM subsidiary.
    The Company had net income of $16,000 after a $78,000 non-cash charge to
operations relating to a stock transaction agreement. Excluding this charge,
net income would have been $94,000, exceeding the prior year's net income of
$84,000.
    The Company generated revenues of $4,426,000 for the quarter, an increase
of $1,185,000 over the $3,241,000 reported in the first quarter of 2000. The
Company was able to increase its profits despite internal funding of its new
CRM business unit.  The CRM subsidiary provides Internet-based Customer
Relationship Management and collision repair services to auto insurance
companies.
    These additional expenses, which were not present in the comparable
quarter last year, totaled approximately $90,000. They included additional
senior sales and marketing staff, in addition to the complete reconstruction
and enhancement of the driversshield.com Web site. The Company is now
aggressively engaged in marketing its CRM program to the insurance industry.
    "These solid results, achieved in the face of difficulties encountered
with our Web site development, are clear evidence of our overall financial
strength, stability and ability to overcome adversity," said Barry Siegel,
Chairman and CEO of driversshield.com Corp.
    "The fact that our ongoing operations have been able to support our
re-entry into our CRM insurance-related businesses without drawing down our
available cash shows the value of having related but diverse and profitable
businesses," he said. "While we were rebuilding and enhancing our site, we
took the opportunity to reassess our CRM business and align ourselves with
better sponsorship. The insurance industry is moving in the direction we
predicted, and we have moved carefully to avoid mistakes in this uncertain
financial environment. In the nearly two decades we have been in business, our
Company has successfully processed hundreds of thousands of collision claims
and repairs for many of the nation's largest and most prestigious companies.
Even though our CRM unit was set back by many months, driversshield.com is now
ready and able to do what we set out to do.  I am confident of the result."
    Siegel noted that driversshield.com has no debt and approximately
$1.8 million in liquid assets, essentially the same as at year-end. Working
capital has actually increased from $1.9 million to $2.1 million since
year-end, he said.
    The Company recently reported that it had signed a letter of agreement to
merge with Code Technologies, Inc., a provider of leading-edge Telematics
solutions, involving satellite-based, Internet and wireless communication,
information and navigation systems for vehicles. This will enable
driversshield.com to expand significantly the leading-edge products and
services it offers to insurers, marketers of auto club services, fleets, auto
dealers and auto aftermarket retailers.

    driversshield.com is engaged in automotive fleet management, auto physical
damage claims processing and collision repair for insurance companies and
automotive services for businesses and members of affinity groups. Since its
founding in 1983, driversshield.com Corp. has built a national reputation for
efficient, cost-saving management of collision claims for self-insured
corporate and municipal vehicle fleets. Clients include AT&T, Time Warner,
IBM, Hershey Foods and many other prominent corporations. Through its affinity
auto membership programs, the Company has established relationships with
Providian Financial, Assurant Group (part of the Fortis group), Aon,
Protective Life, Priceline.com and other prestigious credit card, financial
organizations and web sites.

    This announcement contains "forward-looking statements." Words
"anticipate," "believe," "estimate," "expect" and other similar expressions as
they relate to the Company and its management are intended to identify such
forward looking statements. Although the Company and its management believe
that the statements contained in this announcement are reasonable, it can give
no assurances that such statements will prove correct. Factors that could
affect the occurrence of events or results discussed herein are included with
those mentioned in the Company's filings with the Securities and Exchange
Commission.

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