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First Priority Group Reports Improving Operating Results

22 June 1999

First Priority Group Reports Improving Operating Results

    PLAINVIEW, N.Y., June 21 -- First Priority Group, Inc.
reported today that its operating results have continued to
improve during the second quarter, as forecast, on lower costs and increasing
revenues from its fleet collision claims management operations and affinity
programs.
    "Even with continued heavy investment in launching our new Internet
company, driversshield.com Corp., we are approaching break-even," said Barry
Siegel, FPG's Chairman and Chief Executive Officer.  "The aggressive efforts
of our team to establish partnerships with leading industry players are
beginning to pay off, as we anticipated.  That positions us well for the
private placement for driversshield.com that our investment banker, Fahnestock
& Co. Inc., expects to complete in the next six weeks."  driversshield.com
will provide collision repair services for insurance companies via the
Internet, while continuing to provide affinity auto club programs for several
of the nation's largest financial organizations.  "In our preliminary
marketing efforts, several insurance companies have told us our Internet
strategy is right on target," Siegel said.
    Despite a revenue decline in the first quarter of 1999 reflecting a
nationwide dip in auto accident rates, FPG reduced its loss for the quarter to
$208,000, down from more than $800,000 in 1998's fourth quarter.  For all of
1998, the company reported a loss of $2 million on revenues of $14.6 million.
    Siegel said preliminary results for the first two months of the second
quarter showed that losses declined further to $57,882 in April and $14,776 in
May, as revenues increased.  The May results were the company's best showing
in the past 24 months.
    "Our partnership with the world's largest insurance brokerage firm is
proving to be extremely fruitful," Siegel said.  In April, FPG announced that
its National Fleet Service (NFS) unit had begun providing collision claims
management services to fleet clients of Sedgwick Claims Management Services,
Inc., a unit of Marsh & McLennan Companies, Inc.  The first Sedgwick client
already appears likely to become NFS's largest single customer, and the
company is now completing negotiations with other Sedgwick clients of
comparable size.  Siegel said that results to date indicate that NFS sales
could show the greatest percentage gains in its history, this year.
Siegel said FPG's affinity programs of automotive discounts and services,
which are now part of the new driversshield.com subsidiary, are also
generating significantly increased revenues, with several clients only in the
initial start-up phase. Siegel added, "Overall, we are very encouraged by the
results we are seeing now, and we believe that FPG is on track to make '99 a
breakout year."
    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 contained herein includes information that is
forward-looking.  The matters referred to in forward-looking statements may be
affected by the risks and uncertainties involved in the company's business.
These forward-looking statements are qualified in their entirety by the
cautionary statements contained in the company's Securities and Exchange
Commission filings.