Digital Insurance, Inc. Closes $1.5 million Funding; Announces Chuck Ristau as new CFO

ATLANTA (August 6, 2002) - Atlanta-based Digital Insurance, Inc., a national employee benefits brokerage company specifically focused on the small group market, announced today the completion of a $1.5 million funding with current investor Internet Healthcare Group (IHCG).

"This financing shows that our strategy and business model are strong," said Tom Usilton, president and CEO of Digital Insurance. "In today's economic climate, we are excited about the confidence IHCG has shown in Digital Insurance. The support provided by our investors will enable us to continue to grow our company and continue to provide quality and efficient service to our partners and clients."

In the last year, Digital Insurance has signed partnerships with 16 top national and regional brokerage firms to handle the day-to-day sales and service of their small business and individual clients.

"We are very pleased with the progress Digital Insurance has made and the direction the company is heading," said Steven Shulman, chairman and CEO of IHCG. "They have created the right mix of people, process and technology to become the leader in providing an efficient solution in the selling and servicing of health benefits to the small group and individual markets."

Digital Insurance names Ristau CFO

Usilton also announced the addition to the executive team of Chuck Ristau as Digital Insurance's chief financial officer. Ristau comes to Digital Insurance from Worldcrest Group where he served as CFO and Kohlberg Kravis Roberts & Co. in New York City, where he was the firm's controller.

"We are excited to have Chuck join us," said Usilton. "Chuck brings a breadth of financial experience, a broad range in capital funding and strong development expertise. In addition to his strong financial background, Chuck has a tremendous understanding of the benefits business and healthcare industry in general. He will be a tremendous asset to Digital Insurance."

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.