FLAG Bank Partners With Digital Insurance To Service Health Coverage for Small Businesses

ATLANTA, GA (April 18, 2002) — FLAG Financial Services, a division of FLAG Bank, has entered into an exclusive partnership with Digital Insurance Inc., a national employee benefits broker focused on meeting the needs of small businesses and individuals. Under the co-brokered agreement, Digital Insurance will service FLAG Bank`s new and current small-business health-insurance customers consisting of 25 employees or less. FLAG Bank is a wholly owned subsidiary of FLAG Financial Corporation (Nasdaq: FLAG).

“Our small-business customers are an important segment of our growing customer base. We understand that group health insurance is a huge concern for business owners and are confident that Digital Insurance can provide them with the best solution available,” said Charles R. Daniel, senior vice president of FLAG Financial Services. “Digital has an established record of providing a more efficient process with the high-touch service our small-business market demands. We are impressed with Digital Insurance`s small-business focus, superior technology and commitment to customer service, as well as the industry knowledge and experience of its people.”

Contracted with some of the nation`s top carriers, Digital Insurance combines traditional offline support with a central call center staffed with licensed health-insurance professionals and Web-based technology to provide increased value to small-business customers. This system brings a more efficient process to servicing the small-business and individual market.

“We understand the unique needs of the small-business and individual customer,” said Tom Usilton, president and chief executive officer of Digital Insurance. “We have invested in technology that eliminates the labor-intensive, paper-based way of servicing those customers. With our commitment to small business and customer service, we look forward to enhancing the traditional high level of service that FLAG Bank has provided its customers.”

About Digital Insurance

Digital Insurance is the nation’s fastest-growing employee benefits agency, representing the largest market share of small group insurance business. Digital partners with brokers, agents and financial services companies to manage or acquire their small group customer base, delivering improved profitability and efficiencies, as well as flexibility to concentrate on other business. Through its INcompass^SM suite of services, small employers gain access to superior resources, insurance services and an enhanced customer experience typically only available to large companies. Digital simplifies the benefits management process, improves communication and provides access to an unparalleled range of products and services. The Inc. 5,000 list recognizes Digital Insurance among the country’s top fastest-growing private insurance firms. For more information, visit www.digitalinsurance.com.