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Automobile Protection Corp. Settles with Everest Reinsurance Co.

7 July 1998

Automobile Protection Corporation - APCO Enters Into Confidential Settlement With Everest Reinsurance Company (Formerly Prudential Reinsurance Company)

    ATLANTA, July 7 -- Automobile Protection Corporation
announced that it has entered into a confidential agreement to
settle its lawsuit against Everest Reinsurance Company (formerly Prudential
Reinsurance Company), which was filed on September 12, 1996.
    Martin J. Blank, Chairman/COO stated: "While the specific terms of the
settlement are confidential, I am pleased to report that we have resolved, to
our satisfaction, all of the issues raised in our complaint against Everest
Reinsurance Company.  Management remains comfortable with the charge recorded
in the fourth quarter of 1996 to cover future payments and does not anticipate
any future charges."
    APCO, established in 1984, is a leading marketer and administrator of
products and services to automobile and recreational vehicle dealers.  The
Company's core business is the marketing and administration of EasyCare(R)
Vehicle Service Contracts and the EasyCare(R) Certified Pre-Owned Vehicle
Merchandising Program.  The Company also administers warranty and service
contract products under private labels for financial institutions, an
insurance company and a manufacturer.
    "Safe Harbor" Statement under the Private Securities Litigation Reform Act
of 1995:  To the extent that this news release discusses financial
projections, information or expectations about the Company's products or
markets, or otherwise makes statements about the future, the Company's
statements are forward looking and are subject to a number of risks and
uncertainties that could cause actual results to differ materially from the
statements made. The specific risk factors are described in the Company's Form
10-K that has been filed with The Securities & Exchange Commission in
connection with its 1997 year.
    Other APCO press releases are available through Company News On Call by
fax, 800-758-5804, ext. 100756.