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DELPHI ANNOUNCES PLANS TO ACQUIRE INSURNET INC.

 ROLLING MEADOWS, Ill., Sept. 21 /PRNewswire/ -- Delphi Information Systems Inc. (NASDAQ: DLPH) announced today that it has entered a letter of intent with The Continental Corp. (NYSE: CIC) to acquire Insurnet Inc., an indirect owned subsidiary of The Continental Insurance Co.
 Insurnet, like Delphi, provides agency management systems to approximately 700 independent property and casualty insurance agencies throughout North America. Insurnet's customers represent some of the largest agencies and brokerages in North America, similar to many of Delphi's current customers. Headquartered in Emeryville, Calif., Insurnet reported revenues of approximately $14 million in calendar 1992.
 The letter of intent provides that Delphi will issue to Continental $5 million face value of a series of convertible preferred stock, the number of shares of Delphi common stock (to be registered within six months of closing) equal to $500,000 based on the market value at the close of the acquisition and non-interest bearing Notes payable to Continental with $750,000 due six months after the close and $750,000 due 12 months after the close. Delphi's board of directors will also nominate a Continental executive as a director of Delphi.
 The $5 million convertible preferred stock to be issued to Continental includes a 6 percent cumulative dividend which is payable in Delphi common stock upon conversion of the preferred stock into common stock. The preferred stock is convertible into common stock of Delphi not earlier than 30 months after the close and automatically converts after four years. The preferred stock is redeemable by Delphi at face value plus accrued dividends and includes no voting rights.
 "Insurnet's customers represent some of the largest and most successful agencies and brokerages in the industry, and we look forward to providing them with products and services to further enhance their operations," stated David J. Torrence, president and chief executive officer of Delphi. According to William Grier, Insurnet president, "Insurnet was at a point in its development where it needed access to a broader customer base and additional technical support. We believed the best and quickest way to provide this was to seek an agreement with an insurance automation leader. Delphi is clearly that leader. It has a proven track record in the automation arena and in providing continued servicing of existing customers of companies it has acquired."
 As a result of the acquisition, Delphi's customers will increase to over 4,000, representing approximately 80,000 workstations or over 60 percent of the workstations and terminals installed in independent agencies. Delphi intends to grow its agency management business by providing new and additional products and services to its large customer base, including the Insurnet customers, and through sales to new customers. Further, Delphi would expect to improve the operating results from the Insurnet business by leveraging its product development and sales efforts and through the elimination of redundancies throughout the combined organizations.
 Torrence added, "Continental's long-term holding of our preferred stock, along with its participation on our board, is representative of the partnership of our organizations and our intent to work together in providing the Insurnet customers with quality automation and information solutions to meet their business needs."
 Delphi is the leading vendor of automation systems and services for independent property and casualty insurance agencies and brokerages in North America. The company develops, markets and supports computer applications software systems which automate independent agencies, brokerages and insurance carriers encompassing the areas of sales management, policy and claims administration, accounting, rating, financial reporting and electronic interface with the computers of insurance carriers.
 -0- 9/21/93
 /CONTACT: Terance A. Kinninger, Sr. VP-Corporate Development, 818-706-8989/
 (DLPH CIC)


CO: Delphi Information Systems Inc.; The Continental Corp.;
 Insurnet Inc. ST: Illinois IN: CPR INS SU: TNM


LS-MF -- LA005 -- 4142 09/21/93 12:00 EDT
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Publication:PR Newswire
Date:Sep 21, 1993
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