Progressive Breaks Ground for New Campus in Colorado Springs

New Facility Consolidates Sales and Customer Service Call Centers; Doubles the Company's Area Square Footage

COLORADO SPRINGS, Colo., April 2 -- Progressive , whose companies comprise the country's third largest auto insurance group, breaks ground today in Colorado Springs with plans to develop a three-building, 300,000 square foot campus on more than 30 acres in Northgate Corporate Village. The campus will nearly double the Company's current capacity in the area and will allow it to consolidate its sales and customer service call centers, currently located at 2075 Research Parkway and 1110 Chapel Hills Drive, respectively. Move-in is scheduled to start in early 2004.

The Company has had employees in Colorado Springs for nearly 20 years and doubled its employee base when it made job offers to more than 300 Zurich Personal Insurance employees who were losing their jobs when that company moved its operations from the Springs to Baltimore, Maryland in 1997. In the past year, Progressive has grown 30 percent and hired more than 6,014 people throughout the U.S. In Colorado Springs the company added 308 new people in 2002, bringing to 887 the number of employees in the sales and customer service call centers.

The campus will include a number of amenities including a cafeteria, a primary care center, a fitness center, a wellness program featuring a variety of health screenings and educational opportunities and an employee assistance program providing counseling services to Progressive people and their families.

The direct sales center is one of six that Progressive operates throughout the country; the Colorado Springs location sells auto, motorcycle, boat, all- terrain vehicle (ATV), recreation vehicle and personal watercraft insurance policies to consumers in 26 states. The customer service call center is one of five the company operates throughout the country; the Colorado Springs location provides 24/7, in-person customer service to the company's customers and independent agents in 12 states. Progressive is Colorado's sixth largest auto insurer, employing more than 1,000 people throughout the state and is represented by more than 700 Colorado independent insurance agencies. Countrywide, the company insures more than nine million drivers, employs more than 23,000 people and is represented by more than 30,000 independent agencies.

Progressive operates two other campus locations in its headquarters city, Mayfield Village, Ohio and a campus in Riverview, Florida, a Tampa suburb. In addition, the company operates more than 350 claims offices throughout the country.

"We are pleased that Progressive has chosen to consolidate its Colorado call centers in preparation for future growth," said Colorado Springs Mayor Mary Lou Makepeace. "The positive business atmosphere and quality of life offered in Colorado Springs will surely help Progressive accomplish its business goals. We welcome their continued growth in our community."

"This is an important move for us," said Richard Watts, group president, Sales & Service, Progressive. "Adding space ensures our ability to grow and service our customers and consolidating our call centers allows us to provide a great place for our area employees to work."

"We are delighted to continue a relationship with Progressive that began in 1995 with the development of their first campus in their headquarters in Mayfield Village, Ohio," said Hines Vice President Doug McKinnon. Hines is the international real estate firm Progressive has retained as Development Manager for the project. In this capacity, Hines is responsible for overseeing project construction and providing advice and guidance to the development team on all aspects of the project during pre-development, construction and commissioning.

"Progressive challenged us to use this extraordinary site to create a great workplace for their employees while being good neighbors for the adjacent residential area," said Phillip McCurdy, Vice President, Gensler/Denver, the architectural firm that is designing both the building and its interiors. "One of Progressive's goals is to be an employer of choice in Colorado Springs, and to do that they asked us to design the space, inside and out, from an employee point of view. The design team is focused on creating a workplace that can respond to the changing dynamics of Progressive's business while maintaining a productive, enjoyable space that supports the demands of customer service."

Rocky Scott, president, The Greater Colorado Springs Economic Development Corporation, said: "Progressive's expansion is excellent news for Colorado Springs and we are proud to include them in our corporate community. This step is a sign of confidence in the area; we intend to help make them as successful as they can be."

The Progressive group of insurance companies, in business since 1937, provides drivers with competitive rates and 24/7, in-person and online service. The companies offer insurance by phone at 1-800-PROGRESSIVE, online at progressive.com and through more than 30,000 independent insurance agencies in the U.S. The Progressive Corporation, the holding company, has headquarters in Mayfield Village, Ohio. More information can be found at progressive.com.

Hines is a privately owned real estate firm involved in developing, acquiring, leasing and managing real estate as well as providing extensive global investment management and advisory services. With offices in 74 U.S. cities and 11 foreign countries, and controlled assets valued in excess of $13 billion, Hines is one of the largest real estate organizations in the world. More information can be found at hines.com.

Gensler ... Architecture, Design & Planning Worldwide is a leading global design, planning and strategic consulting firm, with nearly 1,700 people and offices in 25 cities. Recognized by Fast Company as one of the world's most influential design firms, Gensler's multi-textured expertise drives a focused exploration of how people experience the world around them; Gensler teams then use that knowledge to create design solutions that give clients a fresh, competitive edge.

Leslie Kolleda, Progressive PR, 386-947-5158