Digital Insurance Announces Strategic Recapitalization
Transaction Prepares Company for Accelerated Growth In the Small Group Benefits Marketplace

ATLANTA - (August 14, 2007) - Digital Insurance, Inc., a leader in the small group employee benefits marketplace, recently completed a strategic recapitalization. Internet Healthcare Group (IHCG), an original investor in the company, along with Digital’s executive team has provided an additional $17.5 million of equity in the recapitalization. This additional capital was used to both consolidate ownership and position the organization for organic and acquisitive growth going forward.

“IHCG believes, as does Digital’s leadership, that the company’s national benefits platform is uniquely positioned to provide superior value to small businesses across the country,” says Steve Shulman, chairman and CEO of IHCG. “The organization has momentum, and continues to diversify its revenue base while creating barriers to entry for others. Our view is that Digital’s five-year track record of exceeding a 50 percent growth rate is achievable well into the future.”

Digital recently launched INcompass^SM, its branded suite of services for small employers. INcompass delivers value with four elements that, collectively, create a differentiated customer experience for small businesses: cost containment, administrative support, liability reduction and innovative products.

“We understand the challenges small employers face delivering a cost-effective benefits program to their employees,” states Adam Bruckman, CEO of Digital Insurance. “Our core focus is to provide a “large company” experience to our small business clients on behalf of our leading distribution partners. Digital’s scale, investment and continuous product innovation is unique in the marketplace and this is a competitive advantage we intend to expand,” Bruckman adds.

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.