CBIP Management Inc. Acquires Salem Insurance Company Inc.

SEA GIRT, N.J. -- CBIP Management Inc., a private insurance and financial services company, announced today it has acquired Salem Insurance Company Inc. of New Jersey (Salem), a subsidiary of Farmers Mutual Fire Insurance Co. of Salem County, a New Jersey mutual insurance company. Salem is a property and casualty insurance company licensed in New Jersey to underwrite commercial auto insurance, which includes commercial trucking insurance. Salem has the opportunity to become licensed in additional states outside of New Jersey expanding its geographic coverage. The purchase transaction was approved by the New Jersey Department of Banking and Insurance on Dec. 15, 2004. Phoenix-based Miller Capital Corp. acted as CBIP's financial advisor regarding the transaction.

Salem becomes a major component of CBIP, a holding company that includes Mulligan Insurance Agency (a commercial truck insurance agency) and Cold River Group (a specialty insurance consulting company.)

The founders and senior executives of CBIP include: Gary L. Ketchum, CPA, CIA, president and chief executive officer; Thomas A. Mulligan, executive vice president-marketing; Carl R. Sadler, CPCU, ASLI, executive vice president-underwriting; and Joseph K. Valuntas, chief operating office and secretary/treasurer. Gerry Gonzalez, an investor, will be a director and chairman of the Investment Committee.

"We have spent the last two years assembling this group of companies under the CBIP Management banner. It is gratifying for the entire executive team to have all the pieces come together. Adding to the strength of our talented group, we surrounded ourselves with outstanding industry specialists and professional advisors," said Gary L. Ketchum, president and chief executive officer. "We are extremely optimistic with business opportunities present in our industry. Our initial focus will be to aggressively leverage our existing relationships in the truck and title insurance industries. Our insurance consulting services will continue under Cold River Group, and we will enter the insurance premium financing business. We appreciate the support of our investor group who provided the capital to complete this significant transaction," Ketchum concluded.

Primary industry specialists for CBIP: Aon Re Inc.; Windels Marx Lane & Mittendorf, LLP; Criterion Claim Solutions; Pinnacle Actuarial Resources Inc.; and Schindel, Farman & Lipsius LLP.

Professional advisors to CBIP: Miller Capital Corp. and Squire, Sanders & Dempsey L.L.P.

Headquartered in Sea Girt, N.J., CBIP Management Inc., through its subsidiaries, provides insurance, premium finance and reinsurance to select niche commercial markets within the United States. The company's three primary markets are: (1) property and casualty insurance and premium finance services to medium-sized commercial auto and trucking fleets; (2) specialty reinsurance products for property title insurers; and (3) specialty insurance professional liability products for medium-sized professional service organizations. Subsidiary companies include: Salem Insurance Company Inc., Mulligan Insurance Agency Inc., and Cold River Group, LLC.