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Allstate Celebrates Historic 70th Anniversary

    NORTHBROOK, Ill, May 16 Seventy years ago, May 17, 1931,
Allstate Insurance Company sold its first auto insurance policy. The $41.60
mail-order policy provided fire, theft, property damage, liability and
collision coverage for a 1930 Studebaker sedan. Today that car is on permanent
display at Allstate's corporate headquarters in Northbrook, Ill.
    
    The world -- as well as the auto insurance industry - has changed
dramatically in 70 years. These facts and figures illustrate how things have
changed in the United States since Allstate wrote its first auto policy:

                                    1931                 Today

     U.S. population               123 million         285 million
     Average annual income         $1,527              $30,069
     Median price of new
      single-family home           $6,796              $139,000 (2000)
     Average price of new
      domestic car                 $530                $21,012
     Average gas price             $0.20/gal (1930)    $1.56/gal (2000)
     Allstate employees & agents   20                  54,000
     Registered cars               23 million          132 million
     Allstate insurance policies   4,217               14 million households
     Motor vehicle fatalities      33,700              41,300
     Average auto liability
      protection cost              $50 (1930)          $746 (1999)
     Ways to purchase              1 (mail order)      3 (Agents, call
       Allstate auto insurance                           centers and Internet)

    "Today Allstate celebrates 70 years of innovation and achievement," said
Ed Liddy, chairman, president and CEO of Allstate Insurance Company.

    "Our commitment to providing customers with peace of mind is as strong as
it was in 1931.  Back then, Allstate filled a need for a society with already
more than 23 million registered cars," Liddy added. "Through the years, we
have continued to be a pioneer in the industry, with revolutionary ideas that
quickly became commonplace, such as tailored auto rates and drive-in claims
service."

    "Today Allstate customers turn to us for help protecting their homes,
lives and financial security, as well as their cars," Liddy said.