For 2001, DriverShield Reports Profit of $.11 Per Share on Earnings Of $1,169,000

PLAINVIEW, N.Y., April 1 DriverShield Corp. yesterday reported net income of $1,169,000, or $.11 per diluted share, for the year ended December 31, 2001, compared with $248,000, or $.02 per diluted share, for 2000.

The sale of its fleet business in 2002 enabled the Company to apply tax loss carry-forwards for 2001 that it had not been able to recognize in prior years. During 2002, the Company is again expecting to report substantial earnings as a result of the gain from the sale of its fleet business.

The Company's remaining two operating units -- DriverShield CRM and DriverShield ADS -- provide Internet-based claims management and collision repair services for auto insurance companies and automotive discounts and services programs on all types of auto maintenance and repairs for affinity groups, financial institutions, credit unions, insurance companies and individual vehicle owners.

``In 2001,'' commented Barry Siegel, Chairman and CEO, ``we stepped up our focus on our CRM business, with heavy and continuing investments that are helping to improve our technology, marketing, implementation and product development. Although our gains are somewhat slower than anticipated, we continue to gain traction in the insurance marketplace with several contracts under our belt that are providing steady growth in claims volume and revenue. 2002 will be a transition year for us as we move from being known primarily as a fleet services company to becoming an organization with a focus on providing services that have more significant growth potential in larger business segments.

``Our current projections indicate that we will use approximately an additional $1 million of our available cash during the first two quarters of 2002 to continue the building of our CRM business and we expect to realize positive cash flow from that business unit during the second half of the year. Our ADS unit continues to have excellent profitability and positive cash flow,'' Siegel said. ``With a strong current cash position of over $8 million and no debt, our financial condition is solid, with more than enough cash reserves for continued growth and have the added ability to be able to take advantage of other possible opportunities that may arise.''

DriverShield, founded in 1983, provides Internet-based collision repair and claims management services for auto insurance companies and offers automotive discounts and services programs to members of affinity groups, financial institutions, insurance companies and membership organizations, and is currently serving the needs of approximately one million drivers.