Applied Systems, Inc. Provides The Cincinnati Insurance Companies with Real-Time Policy Processing Solution.

Business/Technology Editors

UNIVERSITY PARK, Ill.--(BUSINESS WIRE)--Oct. 7, 2002

Applied Systems, Inc., a leading automation solutions provider for the property and casualty insurance industry, announced today that The Cincinnati Insurance Companies have launched The Diamond System(TM), Applied's property and casualty insurance policy processing solution, in Kansas. Diamond facilitates real-time policy rating, underwriting, issuance and billing functions.

Effective September 3, Diamond was made available to independent agencies representing Cincinnati to process new and renewal personal policies for Kansas policyholders, including homeowners, personal auto, personal umbrella liability, inland marine, watercraft and dwelling fire.

According to Don Doyle, Jr., Vice President - IT e-Business, "We chose Diamond because we needed a business partner and a product that would give our independent agents more control and more choices. Our project team collaborated with Applied to develop a system that integrates third-party interfaces, streamlines the process to issue all personal lines of business, and gives agents new options for agency or direct bill and for policy printing in their own offices or ours. Diamond offers our agents automated renewals and the opportunity to achieve single point of entry, while also introducing time-saving efficiencies like out-of-sequence endorsements in company processing.

"Kansas agencies are responding enthusiastically," Doyle continued. "They're working with us to refine the system for a new Kansas release in early 2003. Then we'll plan state-by-state development and introduction across 28 additional states where our agents market personal lines."

James P. Kellner, CEO and Chairman of Applied Systems, commented, "The scope and timing of this project was very ambitious. Cincinnati selected Diamond late in 2000, and within less than two years, the system has been deployed with six personal lines modules for Kansas. We're pleased with this achievement and look forward to our continued partnership bringing the benefits of Diamond to Cincinnati and their agents in other states."

About Applied Systems: Applied Systems is the leading provider of automation solutions for the property and casualty insurance industry. Since 1983, the company has developed software for independent insurance agents, brokers, managing general agents, and insurance companies, as well as banks and other financial institutions with insurance operations. Applied has helped more than10,000 agencies achieve new levels of success using its leading management systems, The Agency Manager(R) and The Agency Manager(R) Vision Series(TM). Other innovations such as The Diamond System(TM), a policy processing system for insurance carriers, and developments in electronic data interchange have also contributed to Applied's position as the industry's technology frontrunner. Combined with its consulting services, rating solutions, and third party integration, Applied Systems automates insurance transactions at every level of distribution, from customer to carrier. For more information, visit: www.appliedsystems.com.

About The Cincinnati Insurance Companies: Independent insurance agents founded The Cincinnati Insurance Company in 1950. Cincinnati's business strategy is to give policyholders high quality service and protection by structuring the company to promote decision making on a local level, where personal relationships and first-hand knowledge of risks are valuable advantages. Cincinnati currently ranks as the 28th largest U.S. property casualty insurer, rated A++ by A.M. Best for financial strength and confirmed in independent surveys of agents and consumers as an industry leader in the delivery of outstanding claims service.

The Cincinnati Insurance Company is the lead property casualty insurance subsidiary of Cincinnati Financial Corporation (Nasdaq:CINF), a holding company formed in 1968. Other members of the property and casualty group are The Cincinnati Indemnity Company and The Cincinnati Casualty Company. Additionally, The Cincinnati Life Insurance Company markets life, long-term care and disability income insurance and annuities. CFC Investment Company supports the insurance subsidiaries and their independent agent representatives through commercial leasing and financing activities. CinFin Capital Management provides asset management services to institutions, corporations and individuals.