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FIRST PRIORITY GROUP Reports Third Quarter Results

17 November 1998

FIRST PRIORITY GROUP Reports Third Quarter Results New Partnership Approach to Speed Growth Being Discussed

    PLAINVIEW, N.Y., Nov. 17 /PRNewsiwre/ -- FIRST PRIORITY GROUP, INC.,
reported today that a weather-related dip in revenue, coupled
with continuing heavy investment in systems and staff to accommodate
anticipated growth, resulted in an expected net loss for the third quarter.
    Barry Siegel, Chairman and Chief Executive Officer said, "FPG originally
intended to use its advanced systems in concert with a direct sales force to
expand and penetrate new markets.  But studies by industry analysts suggest
that with the new technology, the Company can grow faster by partnering with
established players."  He said, "The Company is currently in discussions with
several large companies about potential arrangements."
    "On the basis of confidentially agreements, we have begun to demonstrate
our technological and systems capabilities to these 'Industry Giants'," Siegel
said.  "The response has been overwhelmingly favorable, which indicates that
they think we have the right platform.  A partnership with any of these
companies could enable FIRST PRIORITY GROUP to garner significant market share
in the claims outsourcing services marketplace," he said.  "The Company's
stated goal," he noted, "is to become the leading provider of outsourced
claims administration and management services to self-insured corporations and
insurance companies."
    Revenue for the three-month period ended September 30, 1998 was
$3,230,990, down 5.3 percent from $3,412,788 for the 1997 period.  Increased
expenditures for electronic systems and for personnel for the Company's
growing Direct Repair Program for insurance companies led to a loss of
$502,453, or $0.06 per share basic and diluted.  In the year-earlier period,
FPG reported a loss of $371,610, also $0.06 per share, of which $115,099, or
$0.02 per share, was from continuing operations and $256,511, or $0.04 per
share, was from discontinued operations.
    Siegel said, "FPG's collision claims management operations for
self-insured fleets and insurance companies continue to gain customers, but
that revenues are sensitive to accident rates, which declined during the
period because of moderate weather conditions throughout most of the United
States."
    For the nine-month period ended September 30, 1998 FPG's revenues were
$11,000,168, up 6.9 percent from $10,289,922 in 1997.  The Company's net loss
from continuing operations was $1,132,349, or $0.14 per share basic and
diluted, versus a net loss of $206,826, or $0.03 per share, for the earlier
period.
    FIRST PRIORITY GROUP is primarily engaged directly and through its
wholly-owned subsidiaries in nationwide managed auto care services for
self-insured corporate fleets, insurance companies, members of affinity groups
and consumers.
    Certain information in this news release is forward-looking, relating to
matters that may be affected by risks and uncertainties in the Company's
business.  These forward-looking statements are qualified in their entirety by
the cautionary statements continued in the Company's Securities and Exchange
Commission filings.
    To review FIRST PRIORITY GROUP's press release on-line via the World Wide
Web, access http://www.firstprioritygroup.com