KingThomason Group Begins Sale of SpectraOne, Its Basic Major Medical Plan; Targets 41 Million Uninsured Americans With Affordable Coverage.

Business Editors/Health & Medical Writers

SAN RAMON, Calif.--(BUSINESS WIRE)--Aug. 23, 2002

KingThomason Group, Inc. (OTCBB:KGTH), a newly public financial services company, today reported that sales of its proprietary and exclusive SpectraOne Basic Major Medical Plan began Tuesday, August 20, 2002, according to an announcement by Tom Thomason, Chairman of the Board.

The BMMP was designed at the request of large insurance brokerage firms including Marsh McLennan, Aon Mass Marketing, Seabury and Smith and A.J. Gallagher. These leading insurance retailers expressed a need for a basic, affordable, individual major medical insurance policy that would cover catastrophic medical costs, for the tens of millions of Americans who can no longer afford the premium costs of medical plans currently offered by the industry.

Thomason noted that a principal requirement of those advocating an affordable, basic, major medical plan was that it be underwritten by an A+ rated insurer. Empire Fire and Marine Insurance Companies, rated A+ Superior by A.M. BEST COMPANY, underwrites the KTG SpectraOne Basic Major Medical Plan. Empire Fire and Marine is a member of the Zurich Financial Services Group.

The BMMP offers a $2 million maximum plan benefit with an in-hospital deductible as low as $500, the insured pays for part of the out-of-hospital expenses, which reduces the monthly premiums.

Thomason noted that the BMMP features a unique accept/reject application form, allowing a policy to be approved and issued within seven to 10 days, as compared to other policies that can take three to five months for delivery. The accept/reject application form accomplishes two important objectives. First, the individual who is suddenly without company-sponsored major medical insurance, or is self-employed, can become insured in less than two weeks and is not at risk for the three to five months associated with the standard plans. Secondly, the selling insurance agent receives his or her commission in seven to 10 days after application, not months later.

The BMMP is being sold through national brokerage firms and several thousand licensed insurance agents currently selling standard medical plans.

The Company anticipates that it will capture a minimum of 1% of the total available market over the next three years or 88,000 BMMP policies written and issued. KTG is the sole marketer of the SpectraOne BMMP and is not an underwriter or re-insurer and therefore takes no risk or exposure to losses or claims.

In a related event, starting July of 2002, KingThomason's Credit Card Services, Inc. division began implementation of its Medical Accounts Receivable Credit Card Program designed to recover, in a "patient friendly" way, past-due, non-insured, medical accounts receivable. The Company has contracts with the 9,000 physicians, 80-hospital member Los Angeles Foundation for Medical Care (the largest such organization in the U.S.), and the 330,000-physician member IPA Association of America that, together, represent in excess of 40% of the country's practicing physicians.

The matters set forth in this news release may contain forward-looking statements. Forward-looking statements involve certain risks and uncertainties that could cause actual results to differ materially from expectations. Contributing factors to such differences include those identified in the company's filings with the Securities and Exchange Commission (SEC).