driversshield.com Announces Termination of Letter of Intent

PLAINVIEW, N.Y., Aug. 31 driversshield.com Corp. announced today, that after completing
extensive due diligence on Code Technologies, Inc. ("Code Technologies") and
the Telematics industry, it has terminated its previously announced Letter of
Intent to merge Code Technologies into a wholly owned subsidiary of
driversshield and will remain focused on its core competencies.
Barry Siegel, CEO of driversshield.com, stated, "We believe Telematics has
potential in the automotive marketplace and there appears to be evidence that
Telematics has been successfully marketed to commercial fleets and rental car
companies. However, we have been unable to determine satisfactory market
acceptance of a consumer Telematics offering in the automotive aftermarket. In
addition, there appear to be numerous well funded entrants in the Telematics
space and with the recent downturn in the economy and our uncertainty of
consumer acceptance, we believe it would be more prudent to remain focused on
our core competencies at this time."
Mr. Siegel added, "We have successfully launched our new CRM (customer
relationship management) business for the near $30 billion auto collision
repair marketplace, which has established complete proof of concept. That
business unit has begun to sign multi-year contracts, which should convert to
significant revenue and profit potential. Our ADS (auto discounts and
services) business unit is performing quite well, is serving nearly a million
members and has recently signed several important strategic relationships with
AON and Assurant, and our fleet management business has never been better."

Since its founding in 1983, driversshield.com has built a national
reputation for efficient, cost-saving management of collision claims for self-
insured corporate and municipal vehicle fleets through its subsidiary,
driversshield.com FS (Fleet Services). Clients include AT&T, CVS, Time Warner,
Lucent Technologies, Hershey Foods and other major national and international
companies. Through its affinity auto club programs, the Company has
established relationships with Assurant Group (part of the Fortis group), Aon,
Protective Life and other leading credit card, financial organizations and Web
sites. The Company decided early in 1999 to expand its long established auto
claims experience and proprietary systems by building a unique e-commerce
solution for insurance companies, the driversshield.com CRM business.

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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