Meriden CT – May 9, 2007 |   – Direct Response Corporation ("DRC"), the holding company for the Response Insurance Group ("the Company"), announced today that it has signed an agreement under which an affiliate of J.C. Flowers & Co. LLC ("JCF") will become the largest investor in DRC. The transaction is subject to regulatory approval. 

The Response Insurance Group is a national direct-to-the-consumer auto insurer headquartered in Meriden CT. The Company was formed in 1995 and currently has customers in 42 states and Washington DC.

"Response has already accomplished a great deal," stated J. Christopher Flowers, President of J.C. Flowers & Co., who will also be joining the DRC Board. "They have a national platform and a solid business model. With their high quality management and employee team, there is tremendous growth potential. I look forward to working with the Board and management on ways to take Response to the next level."

Under terms of the agreement, Metalmark Capital LLC, on behalf of Morgan Stanley Capital Partners, III LP, and other related investors, will sell just under half of its shares to JCF. Morgan Stanley Capital Partners III and its related investors will retain a sizable portion of their shares. Specific terms of the transaction have not been disclosed.

"This is an exciting new chapter for Response," stated Mory Katz, President of DRC and CEO of the Response Insurance Group. "I believe it is a testament to the quality of our employees and the company they have built, that Response enjoys the continued support of our initial investors, and has attracted J.C. Flowers & Co. to our group of world-class investors."

The new DRC Board will include Jeffrey C. Keil, President of Stoneridge Holding, as Chairman, and James M. Stone, Chairman of Plymouth Rock, as Vice Chairman. Mr. Stone was a founder of the Company and has served generally on the Board since its inception.

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Contact:
Ray Palermo
203-634-7251
rpalermo@response.com