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Interstate National Dealer Services Announces Growth in Internet Sales

2 December 1998

Interstate National Dealer Services Inc. Announces Dramatic Growth in Internet Sales; Web Sales Reach $10 Million Annualized Rate

    MITCHEL FIELD, N.Y.--Dec. 2, 1998--Interstate National Dealer Services Inc. announced that recent sales of Interstate administered service contracts through Internet marketing programs, based on results for the latest fiscal quarter ended Oct. 31, 1998, have tripled in the past year and now are generating sales at a $10 million annualized rate.
    Interstate is the leader in promoting service contract sales over the Internet.
    Interstate is a leading direct marketer of service contracts in the country and was founded on the basis of providing the consumer with the warranty coverage they need at outstanding value. This focus has enabled Interstate over the past 6 fiscal years to increase its sales tenfold. Net income during this period grew at a compounded annual rate exceeding 60%.
    Chester J. Luby, Chairman and CEO, stated, "The Internet is an extremely important adjunct to our other marketing programs. We have been very successful in getting the Interstate name and the full array of Interstate products nationwide recognition through the traditional sales and distribution channels but the Internet extends our reach even further. The Internet brings us access to individuals who use the Internet for shopping for vehicles of all types. Based on our success to date and our strong belief that the Internet is a vital and valuable marketing channel, we will continue to devote the resources to maintain our marketing leadership and to expand our Internet activities."

    Interstate is a leading nationwide provider of service contracts and extended warranties, primarily for new and used cars and recreational vehicles, and also for water craft, motorcycles and other power sport vehicles. Please visit our website: http://www.inds.com for additional information.

    This press release contains forward-looking statements which are subject to risks and uncertainties. Such statements are based on assumptions and expectations which may not be realized and are inherently subject to risks and uncertainties, many of which cannot be predicted with accuracy and some of which might not even be anticipated. Future events and actual results, financial and otherwise, may differ from the results discussed in the forward-looking statements. A number of these risks and other factors that might cause differences, some of which could be material, along with additional discussion of forward-looking statements, are set forth in the company's Report on Form 8-K filed with the Securities and Exchange Commission on Dec. 23, 1996.