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

Headquartered in Atlanta, Digital Insurance delivers innovative health and benefits solutions designed specifically for small businesses nationwide. Digital represents the largest market share of small group business, working with brokers, agents and financial services companies to acquire or expand their customer base, as well as improve profitability and efficiencies. Through Digital’s INcompass suite of services, clients gain access to price advantages, an unparalleled range of products and the superior service experienced by large employers. For more information, visit www.digitalinsurance.com.