Milberg Weiss Announces Class Action Suit Against Insurance Management Solutions Group, Inc.

Business Editors & Legal Writers

NEW YORK--(BUSINESS WIRE)--Sept. 28, 2000

The following is an announcement by the law firm Milberg Weiss Bershad Hynes & Lerach LLP:

The law firm of Milberg Weiss Bershad Hynes & Lerach LLP announces that a class action lawsuit was filed on September 28, 2000, on behalf of all persons who purchased the securities of Insurance Management Solutions Group, Inc. ("INMG" or the "Company") (NASDAQ: INMG) pursuant or traceable to the Company's February 11, 1999 initial public offering ("IPO"). A copy of the complaint filed in this action is available from the Court, or can be viewed on Milberg Weiss' website at: http://www.milberg.com/inmg/

The action, numbered 8:00-CV-2013-T-26-F, is pending in the United States District Court for the Middle District of Florida, located at 223 Sam M. Gibbons Courthouse, 801 N. Florida Avenue, Tampa, FL 33602-3800 against defendants IMSG, Geotrac of America, Inc. ("Geotrac"), Bankers Insurance Group, Inc., Venture Capital Corporation, David K. Meehan, Jeffrey S. Bragg, Daniel J. White, Robert M. Menke, Robert G. Menke, John A. Grant, Jr., William D. Hussey, E. Ray Solomon, Alejandro M. Sanchez, individually, and Raymond James & Associates, Inc., and Keefe, Bruyette & Woods, Inc., individually, and as representatives of the underwriter class. The Honorable Richard A. Lazzara is the Judge presiding over the case.

The complaint alleges that defendants violated Sections 11, 12(a)(2) and 15 of the Securities Act of 1933 by issuing a materially false and misleading Registration Statement and Prospectus. As alleged in the Complaint, the Prospectus represented that INMG was successfully assimilating its two primary lines of business, flood mapping and insurance outsourcing services, and that it was realizing synergies between these purportedly overlapping but different lines of business, leaving INMG well-positioned to execute its growth strategy. Specifically, the complaint alleges that the Prospectus was materially false and misleading because it failed to disclose: (i) the flood mapping business was not compatible with INMG's outsourcing services and synergies could not possibly be realized causing expected future growth to be well-below INMG's estimates; (ii) as a result of the incompatible nature of the two lines of business, few if any cross-over selling opportunities existed, further impacting future growth expectations; (iii) INMG's problems integrating these two lines of business prevented INMG from consolidating Geotrac into its operations and accessing Geotrac's customer base to generate additional revenue; and (iv) as a result of the foregoing, the defendants had no reasonable basis to conclude that INMG expected to experience significant growth in its business and revenues.

If you bought the securities of INMG pursuant or traceable to the Company's February 11, 1999 IPO, you may, no later than November 27, 2000, request that the Court appoint you as lead plaintiff. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Milberg Weiss Bershad Hynes & Lerach LLP, or other counsel of your choice, to serve as your counsel in this action.

Milberg Weiss Bershad Hynes & Lerach LLP (http://www.milberg.com) is a 160-lawyer firm with offices in New York City, San Diego, San Francisco, Los Angeles and Boca Raton and is active in major litigations pending in federal and state courts throughout the United States. Milberg Weiss has taken a leading role in many important actions on behalf of defrauded investors, consumers, and others, and has been responsible for more than $20 billion in aggregate recoveries. Please contact the Milberg Weiss website for more information about the firm. If you wish to discuss this action with us, or have any questions concerning this notice or your rights and interests with regard to the case, please contact the following attorneys: