White Plains, NY – July 9, 2001 |  Direct Response Corporation, the national holding company for the Response Insurance group of direct-to-the-consumer auto insurers, announced it had completed a purchase of a 25% interest in Direct-Link Insurance Services, LLC, a leading acquirer of personal lines agencies.

“Direct-Link will be a great addition to our group of companies,” said Mory Katz, President & Chief Executive Officer of Direct Response Corporation (DRC) and Chairman of the subsidiary Response group of auto insurance companies. “We’re building Response on a solid direct-model and are on our way to becoming the next large direct insurer. Direct-Link provides a creative new avenue for us to attain that goal. They have virtually invented a new strategy to consolidate insurance agencies and we believe Direct-Link will be a great symbiotic complement to our business model.”

James MacKenzie, President & Chief Executive Officer, founded Direct-Link in 1999 and has grown it into one of the leading acquirers of personal lines and small commercial agencies in North America. “The Response group has the capital, the expertise, and direct-insurance industry knowledge to help Direct-Link fulfill our dream of becoming the largest insurance consolidator in the United States,” said Mr. MacKenzie. “This will enable Response and Direct-Link to build on our respective core businesses and yet, each expand our horizons.”

Financial terms of the purchase, which was concluded on June 22nd, were not disclosed. As part of the deal, Mr. Katz and Kathy Gleeson, Vice President of Response’s Customer Service Department and a DRC Officer, will assume positions on the Direct-Link Board of Directors. Direct-Link is headquartered in Pacific Palisades, CA and has its Agency Operations Center in Toronto, Canada.

Response Insurance, the lead holding of Direct Response Corporation, is a national auto insurance company focusing on insuring safe, responsible drivers. The company, known for its low auto insurance rates and great customer service, was recently named as one of the best auto insurance companies in New York, based on complaint ratios, by that state’s Insurance Department. Consumers may reach Response Insurance through a toll-free number (1-800-RESPONSE) and their website, www.Response.com, which provides real-time auto insurance quotes online and the power to fully complete transactions on a live basis. It is one of the only auto insurance websites that enables consumers to purchase a policy, and immediately print out a legal insurance I.D. card that allows them to drive away fully insured.

Direct Response Corporation, was formed in 1996 and financed with $315 million from an investor group led by Morgan Stanley Capital Partners, the private equity unit of Morgan Stanley. The Company is headquartered in White Plains, NY, and also has a West Coast call center in Suisun City, CA and a Northeast Regional Claims office in Melville, NY. DRC also owns Connecticut Life & Casualty Insurance Company, a personal lines company based in Meriden, CT.