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

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.