Aon Corporation To Acquire First Extended, Inc.

Business Editors

CHICAGO--(BUSINESS WIRE)--May 22, 2001

Aon Corporation (NYSE:AOC) announced today that it has entered into a definitive agreement to acquire First Extended, Inc., an administrator of extended service contract products. Operating as part of Aon Warranty Group, First Extended will offer unique dealer mechanical repair programs. The acquisition is expected to be financed with Aon common stock and will be accounted for under the purchase method of accounting. Additional terms of the agreement were not disclosed. The transaction is subject to regulatory approval.

First Extended will enhance Aon Warranty Group's current warranty offerings by providing additional choices in automotive mechanical repair programs. First Extended will also allow Aon Warranty Group to add distribution channels by reaching dealerships through their relationships with general agencies.

"First Extended provides a unique niche of extended warranty programs to the retail automotive industry, complimenting the many products and services we currently provide, " stated David L. Cole, chairman, president, and CEO of Aon Warranty Group. "Adding First Extended to the Aon Warranty Group family fully rounds out the offerings we have for the retail automotive industry. With over 25 years of experience, and an excellent relationship with the general agent market, First Extended will strengthen Aon Warranty Group's position as the largest independent automotive service contract provider in the US."

Based in Dallas, Texas, First Extended is an administrator of extended service contract products and services for more than 1,700 automobile dealers of new and pre-owned cars and trucks throughout the U.S. Founded in 1974 by Carl Westcott, First Extended provides services including new vehicle service contracts, pre-owned vehicle service contracts, oil service plans and Guaranteed Assett Protection to over one million vehicle owners.

"We're excited about joining the Aon Warranty Group family," stated John Curtis, president of First Extended, Inc. "As a member of the Aon family, we will continue our growth through our agents and employees, while having the benefit of resources that would not have been available as an independent company."

Aon Corporation (www.aon.com) is a holding company that is comprised of a family of insurance brokerage, consulting and insurance underwriting subsidiaries. Aon's common stock is listed on the New York, Chicago, Frankfurt and London stock exchanges.

Aon Warranty Group is a wholly owned subsidiary of Aon Corporation, providing products and services to the world's premier automotive, home, consumer electronics, and recreational industries, among others. With over three billion service contracts managed worldwide, Aon Warranty Group is the world's leading independent supplier of warranty and customer relationship programs.

This press release may contain certain statements relating to future results, which are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from historical results or those anticipated, depending on a variety of factors such as general economic conditions in different countries around the world, fluctuations in global equity and fixed income markets, changes in commercial property and casualty premium rates, the competitive environment, the actual cost of resolution of contingent liabilities, the final form of the business transformation plan, the ultimate cost and timing of the implementation thereof, the actual cost savings and other benefits resulting therefrom, whether the Company ultimately implements the proposed spin-off of its underwriting operations, and the timing and terms associated therewith. Further information concerning the Company and its business, including factors that potentially could materially affect the Company's financial results are contained in the Company's filings with the Securities and Exchange Commission.