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Progressive Distributes December Results

MAYFIELD VILLAGE, Ohio--Jan. 2, 20050, 2005--The Progressive Corporation today reported the following results for December and fourth quarter 2004, each of which includes an additional week of operating (underwriting and service) results as compared to the corresponding periods of the prior year:

----------------------------------------------------------------------
                      Month                        Quarter
--------------------------------------- ------------------------------
(millions,
 except per
 share
 amounts)     2004    2003    Change(A)    2004     2003     Change(A)
           --------- ------- ---------- --------- --------- ----------
 Net
  premiums
  written  $1,135.5  $861.3     32%     $3,352.3  $2,906.4     15%
Net
 premiums
 earned     1,270.2   935.4     36%      3,564.7   3,040.0     17%
Net income    179.5   112.6     59%        413.5     357.8     16%
  Per share     .89     .51     73%         2.01      1.63     23%
Combined                                               
 ratio         80.6    86.6    6.0 pts.    85.5      85.9      .4 pts.
Pre-tax net
 realized
 gains
 (losses)     (10.6)   (2.6)   308%          (.7)     (3.0)   (77)%
Diluted
 equivalent
 shares       202.3   219.6    (8)%        206.2     219.5     (6)%


(A) Excluding the additional week of activity, net premiums written
    growth would have been approximately 5% for the month and 7% for
    the quarter, respectively, and net premiums earned growth would
    have been approximately 9% for both periods. See "Monthly
    Commentary" for a further discussion.

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See the complete monthly release at http://investors.progressive.com/releases/2004/pdf/mreport_1204.pdf for further month and year information and commentary.