DIGITAL INSURANCE COMPLETES 16 ACQUISITIONS DURING FIRST HALF OF 2008

Leading Employee Health Benefits Agency Provides Solution for Independents Seeking to Sell Firm, Gain Liquidity or Change Business Focus

ATLANTA – August 13, 2008 -- Digital Insurance, Inc. (www.digitalinsurance.com), the nation’s fastest-growing employee benefits agency in the small group insurance market, acquired 16 agencies or blocks of their accounts during the first half of 2008. This activity further bolsters the company’s expansion in this specialized niche.

“Digital provides business segmentation and succession solutions for small firms and independent agents who want to sell, retire or focus on other business, but still care about the quality of service delivered to their customer base,” says Adam Bruckman, president and chief executive officer of Digital Insurance. “After spending years building their small group book of business, some agents may have little opportunity to gain liquidity or retire with peace of mind. Digital’s eight-year track record of partnering with brokers and agents to efficiently manage their small group health insurance accounts uniquely positions us to acquire such business and continue delivering enhanced service,” he adds.

“As part of our growth strategy, we sold our small group accounts to Digital Insurance,” says Guy Morrison, president of Strategic Benefits Solutions in Alpharetta, GA. “Our core capabilities and customer value proposition increasingly focused on employer groups with 100 to 5000 employees. As a result we needed to commit to, or transition out of, the small group segment. We searched diligently for a partner that could not only purchase this block but also provide the service and commitment level that we required for our former small group customers. The transition went smoothly and customer retention has been surprisingly high.”

According to the 2008 Employee Benefits Adviser broker survey, forty-three percent of advisers say that business growth is slowing and this was a particularly large concern for advisers who have been in the business for 10 or more years. Of brokers who have been working as a group benefit adviser for 20 years or more, 88 percent list “hoping to retire” as a business challenge for the coming year.” Many have spent decades servicing small employers and have few options to monetize all or a portion of their business. Although many firms are involved in marketplace consolidation, only Digital Insurance exclusively focuses on small group benefits business nationwide.

“The volume of business we’ve closed in a short period of time reflects a market need, as well as our aggressive efforts to identify agents and agencies seeking to transition their small group business,” says Bruckman. “We are presenting opportunities to sole proprietors who want a cash infusion or to sell their independent insurance agency, as well as brokers and financial planners who desire market differentiation, time to focus on core business or a segmentation strategy to grow upstream.”

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.