California Restaurant Workers' Comp Group Declares Dividend of $7.1 Million to Employer Members.

Low Number of Losses and Outstanding Claims-Closing Record Enable CRMBC to Rebate Funds for Group's 2005 Year

ROSEVILLE, Calif. -- The California Restaurant Mutual Benefit Corporation (CRMBC), a self-insurance group that provides workers' compensation insurance coverage to nearly 300 California employers with some 70,000 employees in the restaurant and food service industries, will return a dividend of $7.1 million to its members for the 2005 program year, the CRMBC board of directors announced today.

A state-approved mutual benefits corporation established in 2005, CRMBC provides workers' compensation coverage to restaurant and food service employers who participate in its risk-sharing pool. Members benefit from lower workers' comp costs due to the group's greater collective ability to absorb claims and administrative costs, as well as safety training, loss prevention services and a unique claims control program CHSI delivers to each member.

For each program year, CRMBC is required to return all excess-of-loss funds Co the unspent assessment monies its members contributed to the insurance pool during the previous 12 months Co in the form of member rebates, or dividends.

The $7.1 million in rebated funds for 2005 will be distributed over a 3-year period to the CRMBC membership in accordance with the board's approved formula. The return will be based on each member's individual assessment and claims history, along with the group's collective performance.

"The CRMBC board is thrilled with the magnificent performance of the program," commented David Mitchell, board president. "This performance allows a significant financial return to each member while maintaining the sound financial underpinnings of our group. The members have worked very closely with the board, our administrator CHSI and our broker partners to produce very low losses and superior claims closing ratios. These results show what can be achieved when all parties work together to reduce employee injuries and to seek proper treatment for those employees who are unfortunately injured on the job."

Mitchell continued, "We feel our program is a definite win-win proposition because our members are able to reduce their costs through their attention to CHSI's outstanding loss prevention and claim support Co which keeps more of our employees healthy and productive while assisting California's largest employer segment to stay profitable and robust. Significantly, CRMBC's results are even better in 2006, our second year of operation, which further testifies to the continuing value of the group for our members."

Membership in CRMBC requires prospective members to demonstrate a strong commitment to safety before they are approved by the group's board.

More information on the California Restaurant Mutual Benefit Corporation is available by contacting CHSI, the group's administrator, at [phone].