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Motor Club of America Announces Shareholders Approve North East Acquisition

14 July 1999

Motor Club of America Announces Shareholders Approve North East Acquisition; North East Shareholders Meeting Adjourned Without Vote

    PARAMUS, N.J., July 13 -- Motor Club of America
("Company") announced that its shareholders have approved the
acquisition of North East Insurance Company ("North East") and
an alternative plan of financing the acquisition which would enable the
Company to raise up to $10 million in convertible subordinated debentures.
    The Company reported that it had been informed by North East that its
special shareholders' meeting had been adjourned, as sufficient number of
proxies to constitute a quorum had not been received.  The Company also
reported that North East has adjourned its special meeting until
July 20, 1999.  The Company has indicated its willingness to extend until
July 23, 1999 the date by which the acquisition must be consummated, beyond
which date either party may terminate the Merger Agreement.  It is a condition
of the Merger that at least 75% of the North East shares must approve the
same.
    Motor Club of America is a property and casualty insurance holding
company.  Motor Club of America Insurance Company writes personal automobile
insurance.  Preserver Insurance Company writes small commercial and homeowners
insurance.  Both companies are separately rated B+ (Very Good) by A.M. Best
Company.