Preserver Group Announces Additional Developments in New Jersey Private Passenger Automobile

    PARAMUS, N.J., July 18 Preserver Group, Inc. today reported that its Motor Club of
America Insurance Company ("Motor Club") unit had been granted certain relief
by the New Jersey Department of Banking and Insurance with regard to its
private passenger automobile operations, designed to improve Motor Club's
deteriorating financial condition.  Motor Club's premium to surplus ratio no
longer meets industry standards, its share of urban enterprise zone ("UEZ")
business (where it writes double its required amount) is disproportionately
high, and A.M. Best recently downgraded the Motor Club unit.  The relief
includes the immediate cessation of accepting new business in UEZ's, the
non-renewal of a number of UEZ risks, and relief from assigned risk business.

    Forward-Looking Statement Disclaimer.  This press release contains
statements that are not historical facts and are considered "forward-looking
statements" (as defined in the Private Securities Litigation Reform Act of
1995), which can be identified by terms such as  "believes," "expects,"
"may," "will," "should," "anticipates," the negatives thereof, or by
discussions of strategy.  Certain statements are forward-looking statements
that involve risks, uncertainties, opinions and predictions, and no assurance
can be given that the future results will be achieved since events or results
may differ materially as a result of risks facing the Company.  These include,
but are not limited to, the cyclical nature of the property casualty insurance
industry, the impact of competition, product demand and pricing, claims
development and the process of estimating reserves, the level of the Company's
retentions, catastrophe and storm losses, legislative and regulatory
developments, changes in the ratings assigned to the Company by rating
agencies, investment results, availability of reinsurance, availability of
dividends from our insurance company subsidiaries, investing substantial
amounts in our information systems and technology, the ability of our
reinsurers to pay reinsurance recoverables owed to us, our entry into new
markets, our acquisition of North East Insurance Company on
September 24, 1999, our acquisition of Mountain Valley Indemnity Company on
March 1, 2000, our successful integration of these acquisitions, potential
future tax liabilities related to an insolvent subsidiary and state regulatory
and legislative actions which can affect the profitability of certain lines of
business and impede our ability to charge adequate rates, and other risks
detailed from time to time in the Company's filings with the Securities and
Exchange Commission.