ECS Companies Selected as Environmental Insurance Provider for Kelly Air Force Base Redevelopment.

SAN ANTONIO--(BUSINESS WIRE)--Nov. 2, 1998--The Greater Kelly Development Corp. (GKDC) Board of Directors unanimously voted recently to purchase a customized environmental insurance program, designed specifically for the former Kelly Air Force Base by ECS Underwriting of Exton, Pa.

The policy, which will protect GKDC from potential environmental and financial liability during the cleanup and ongoing operation of its large facility, was designed with the assistance of Catto & Catto, a San Antonio insurance broker.

"The GKDC Board has aggressively marketed its site as a prime leasing opportunity for a variety of businesses, and their primary concerns were that an environmental incident caused by contamination on the site from prior operations could damage the environment, delay further redevelopment, or act as a disincentive to potential tenants," according to ECS Vice President for Government Affairs Bob Hallenbeck.

"Increasingly, across the country, environmental insurance is playing a key role in returning these closed military sites to productive community use. The situation at Kelly AFB is a perfect example of how a custom-designed, reasonably- priced product can provide the comprehensive coverage necessary to encourage the creation of new jobs, new tax revenues and positive redevelopment."

Kelly's decision to purchase this insurance follows several successes for The ECS Companies in creating customized insurance programs for several base redevelopment projects currently underway nationwide. These projects include the Lowry Air Force Base in Denver, CO; the Naval Ship Yard in Philadelphia, Pa; Fort Sheridan in Highland Park, IL; and the Glenview Naval Air Station in Glenview, IL.

"Kelly Air Force Base is the oldest continuously active base in the country and the efforts there are deemed the most complicated military base redevelopment currently underway," said Hallenbeck. "The magnitude and complexity of the operations performed there presented us with many challenges in designing coverage that would facilitate both current and future operations.

"Kelly's environmental insurance program will help cushion the impact of potential environmental liabilities associated with the extensive base cleanup, protect tenants against property damage, bodily injury and legal defense costs, and encourage the eventual re-use or transfer of the property to new owners or tenants," Hallenbeck added.

The 4,757-acre Kelly AFB employs 22,937 civilians and military personnel, supports 6,000 aircraft, 35,000 aircraft engines, 55,000 auxiliary engines, all Airforce nuclear weapons, and all fuels and lubricants used by the Air Force and NASA.

The complexity of Kelly's operations has required it to take a comprehensive and integrated approach to managing its environmental exposures, including the clean up of past contamination. ECS Underwriting and its sister companies -- ECS Risk Control and ECS Claims Administrators -- will provide extensive risk control and claims management services as needed.

These services may include environmental site assessment, environmental, health and safety training, contract review, or legal defense. ECS Underwriting, an ECS company, is an underwriting manager for Reliance National of New York and a leading provider of environmental insurance combining underwriting, consulting and claims management.

The ECS Companies, headquartered in Exton, Pa., are leading providers of integrated environmental risk management(SM) solutions to business and industry worldwide.

ECS is the 1998 recipient of the Arthur Quern Quality Award, sponsored by the Risk & Insurance Management Society (RIMS) and the Quality Insurance Congress (QIC), in recognition of achieving quality in its risk management services and products.