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Unistar Acquires 20 More Florida Auto Insurance Agency Offices

1 April 1999

Unistar Acquires 20 More Florida Auto Insurance Agency Offices

    DALLAS, March 31 -- Unistar Financial Service Corp.
(OTC Bulletin Board: UNSF) (UNSF), has closed on the acquisition of Allied
Auto Insurance (16 locations -- based in Ft. Lauderdale, FL) and Mr. Auto
Insurance and Accurate Insurance Services (4 locations in St. Lucie and
Okachobee Counties, FL).  In addition to Unistar's Texas and California
locations, these acquisitions bring Unistar's captive retail, point-of-sale
location count to 40 auto insurance agency offices within Florida.
    Marc A. Sparks, Chairman and CEO of Unistar Financial Service Corp.,
states, "The mergers of Allied Auto Insurance, Mr. Auto Insurance, and
Accurate Insurance into the Unistar captive retail agency force provides for
an increased captive distribution sales system for our multiple auto insurance
products in the Florida market.  We believe that Florida is capable of
supporting 300 retail auto insurance distribution sales centers for Unistar's
five auto insurance products, our Renter's Plus and Accident Plus programs,
and our upcoming homeowner's insurance product.  We are extremely pleased to
be granted the significant agency management expertise of Allied's Kevin and
Brian Stevens, brothers with 50 years collective experience in the auto
insurance industry -- and of Diane Ellwood of Mr. Auto and Accurate.  As
customary, these individuals will remain with Unistar to continue operations
and expansion of their respective agency offices."
    Headquartered in Dallas, Texas, Unistar Financial Service Corp. is a
leading fully-integrated financial service holding corporation, specializing
in auto insurance, renter's insurance, premium financing, and insurance claims
management.  Unistar Financial Service Corp.'s wholly-owned subsidiaries
include U.S. Fidelity Insurance Services, Great Southern, First Choice, Peak
Underwriters, and Advanced Underwriters -- managing general agencies, Unistar
Auto Insurance Agencies -- retail auto insurance agents, Renter's Plus --
tenant insurance, Eagle Premium Finance Co., First Grampian Premium Finance
Co., Eagle Claims Corp. -- an auto insurance claims company, Talon Financial
Services -- a reinsurance brokerage, and Unistar Insurance Company (formerly
International Surety & Casualty Company), a property and casualty insurance
company.  Additional information is available at:  http://www.unistarfinancial.com,
or at http://www.prnewswire.com - Company News on Call.
    Except for historical information, the forward-looking statements in this
news release involve risks and uncertainties and are subject to change based
on various factors, including competitive conditions in the insurance
industry, unpredictable developments in loss trends, changes in loss reserves,
market acceptance of new coverages and enhancements, and changes in levels of
general business activity and economic conditions.