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DCAP Reports Third Quarter 2005 Results

HEWLETT, N.Y.--Nov. 1, 20050, 2005--DCAP Group, Inc. , the largest chain of independent storefront insurance agencies in the Northeast, today reported financial results for the first nine months of 2005. Total revenues declined slightly to $10,820,499, a decline of 4.9% as compared to the first nine months of 2004. Net income was $611,302, a reduction of $484,570 as compared to the first nine months of 2004. Earnings per common share (diluted) were $0.20 as compared to $0.35 for the comparable nine months of 2004.

Operating Highlights
                                             Nine months   Nine months
                                                ended        ended
                                              September    September
                                               30, 2005     30, 2004
                                             -------------------------
Commissions and Fees                         $5,461,000   $5,326,539
                                             -------------------------
Premium Finance Revenue                       5,359,499    6,049,173
                                             -------------------------
Total Revenues                               10,820,499   11,375,712
                                             -------------------------
Pretax Income                                 1,020,461    1,733,450
                                             -------------------------
Net Income                                      611,302    1,095,872
                                             -------------------------

                                             -------------------------
Basic EPS                                          0.22         0.44
                                             -------------------------
Diluted EPS                                        0.20         0.35
                                             -------------------------

                                             -------------------------
Basic Shares                                  2,723,215    2,491,333
                                             -------------------------
Diluted Shares                                3,271,246    3,244,947
                                             -------------------------


Commentary

"Our insurance segment has held up well in 2005," said Barry Goldstein, DCAP's CEO. "Since losing our contingency arrangements following the New York Attorney General's investigations of a number of larger commercial insurance brokers, revenues have in fact increased slightly thus far in 2005. This is quite encouraging since our contingent commission revenue during the first nine months of 2004 amounted to 20% of our commissions and fees for that nine month period."

"The rotation out of the residual markets, particularly in New York State, has led to a reduction in our premium finance revenue. Our average loan size has declined while volume is relatively flat. Since our servicing costs are mostly fixed, our margins have been compressed. We are pursuing solutions to this issue", added Mr. Goldstein.

Mr. Goldstein has taken back much of the day-to-day responsibilities for the operation of the company. He stated that "DCAP will more vigorously pursue acquisitions and should find more opportunities in the near term. Our expansion into Western New York State through an acquisition of four Rochester stores should close before year end, and we intend to use the newly acquired offices to expand north into Buffalo and Erie County".

About DCAP Group

DCAP Group, Inc. owns and operates the largest chain of independent storefront insurance agencies in the Northeast. Through DCAP Insurance, Barry Scott Insurance and Atlantic Insurance Agency, DCAP Group provides automobile insurance (and to a lesser extent, motorcycle and homeowners), enhanced by complimentary premium financing capabilities, to retail customers in New York, New Jersey, and Pennsylvania. Other products include automobile club service for roadside emergencies and income tax preparation services. As of November 10, 2005, DCAP had 72 owned or franchised storefront locations.

Forward Looking Statements

Statements in this press release may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, may be forward-looking statements. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. These statements involve risks and uncertainties that could cause actual results to differ materially from those included in forward-looking statements due to a variety of factors. More information about these factors can be found in DCAP's latest Annual Report filed with Securities and Exchange Commission on Form 10-KSB. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.