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Interstate National Dealer Services Announces First Quarter Fiscal 2002 Results

    MITCHEL FIELD, N.Y.--March 14, 2002--Interstate National Dealer Services, Inc. today announced its first quarter results for the period ended January 31, 2002.
    Revenues for the three months ended January 31, 2002 increased approximately 8% to $13,960,699, compared to $12,878,138 for the same period a year earlier. Net income for the three months ended January 31, 2002 was $345,383, or $0.08 per share on 4,087,131 diluted weighted average shares outstanding, compared to net income of $319,515, or $.07 per share on 4,407,417 diluted weighted average shares outstanding, for the comparable period a year earlier.
    Interstate is a leading nationwide provider of service contracts and extended warranties, primarily for new and used cars and recreational vehicles, as well as watercraft, manufactured housing, motorcycles and other power sport vehicles. For additional information please visit our websites: http://www.inds.com and http://www.warrantydirect.com.
    This press release contains forward-looking statements, which are subject to risks and uncertainties. Such statements are based on assumptions and expectations which may not be realized and are inherently subject to risks and uncertainties, many of which cannot be predicted with accuracy and some of which might not even be anticipated. Future events and actual results, financial and otherwise, may differ from the results discussed in the forward-looking statements. A number of these risks and other factors that might cause differences, some of which could be material, along with additional discussion of forward-looking statements, are set forth in the Company's Report on Form 8-K filed with the Securities and Exchange Commission on December 23, 1996.


      INTERSTATE NATIONAL DEALER SERVICES, INC. AND SUBSIDIARIES
                 CONSOLIDATED STATEMENTS OF OPERATIONS
         FOR THE THREE MONTHS ENDED JANUARY 31, 2002 AND 2001
                               UNAUDITED



                                         2002                     2001

REVENUES                         $ 13,960,699             $ 12,878,138

NET INCOME                            345,383                  319,515

NET INCOME PER SHARE:

 Basic                                  $ .09                    $ .08
 Weighted average shares 
  outstanding                       3,967,449                4,195,325

 Diluted                                $ .08                    $ .07
 Weighted average shares 
  outstanding                       4,087,131                4,407,417


                      CONSOLIDATED BALANCE SHEETS


                                  January 31, 2002    October 31, 2001
                                    Unaudited

Cash and investments             $ 69,950,737             $ 68,917,084

Total assets                       87,596,316               86,613,542

Total stockholders' equity         19,506,558               19,343,074