FOR IMMEDIATE RELEASE

Contact: Cindy Gittelsohn
Alyson Herman
Jericho Communications
212-645-6900
PROGRESSIVE PROVIDES FUNDING TO DELAWARE STATE POLICE
TO HELP BUST VEHICLE THEFT AND INSURANCE FRAUD RING

Company Works With Law Enforcement to Combat
Theft and Fraud to Help Keep Auto Insurance Rates Down

MAYFIELD VILLAGE, OHIO (June 26, 2003)—The Progressive group of insurance companies (NYSE:PGR), the third largest auto insurance group in the U.S., today announced a successful end to a multi-year vehicle theft and insurance fraud investigation it helped fund. The investigation ended on June 5, resulting in four arrests and the recovery of eight stolen vehicles valued at $217,000.

“Auto insurance fraud is not a victimless crime – we all pay for it, and according to the Coalition Against Insurance Fraud, auto insurance fraud alone is a nearly $14 billion a year problem we all share in. And, Progressive aggressively investigates and prosecutes people who engage in fraud, so if that’s your intent, stay away from Progressive,” said Peter Ganley, Progressive’s Delaware Special Investigations manager.

Progressive's Special Investigations Unit (SIU), in Delaware, a group of three professionals dedicated to investigating and prosecuting those involved in insurance fraud, provided $5,000 to help law enforcement officials target a group that was stealing and then selling cars. Progressive employs more than 230 SIU professionals throughout the U.S. who regularly work with law enforcement and others to help combat auto theft and insurance fraud, which in turn helps keep insurance rates down for all consumers.

In November 2002, undercover detectives purchased a stolen 1996 Mercedes 420 from Zaccahaes "Zach" Charlemagne, who operated Success Auto Body in New Castle, and was involved in the purchase and sale of stolen vehicles. The Delaware State Police contacted Progressive’s Ganley and fellow investigator Thomas Whelan in January 2003 when they learned the Mercedes was stolen from a Progressive customer in Randallstown, Maryland.

In the months following, the investigation intensified. The detectives purchased additional vehicles from Charlemagne with the money Progressive provide, including a 1999 Acura 3.2, a 2002 Toyota Corolla, a 1998 Acura RL and a 2002 Ford Expedition.

“Progressive’s financial support provided law enforcement with the funding necessary to purchase these vehicles,” said Thomas Whelan, a Progressive Special Investigator in Delaware. “We’re always happy to work with law enforcement and help finance the fight against auto theft and insurance fraud.”

The investigation was conducted by the Delaware State Police Special Operations Response Team – Troop 2, the Delaware Attorney General's Office, the Wilmington, Delaware Police Department, the Delaware Insurance Commissioner's Office, the Drug Enforcement Agency, and the National Insurance Crime Bureau, and culminated on June 5, when Charlemagne and three associates arrived at a location in New Castle with three stolen vehicles from Florida: a 2003 BMW X5, a 2001 Acura MDX and a Mercedes ML430. Upon delivery of the stolen vehicles, all of the suspects were taken into custody without incident.

Charlemagne was arrested for two counts of racketeering, two counts of insurance fraud, four counts of receiving stolen property, and six counts of conspiracy. In connection with Charlemagne, Christopher Bruce of New Castle, Darron C. McKenzie of Miami, Florida, and Michael A. Green, of Hollywood, Florida were arrested for receiving stolen property and conspiracy for their role in delivery of the stolen vehicle from Hollywood, Florida.

Progressive paid a $26,111 claim for the 1996 Mercedes 420. The Delaware State Police will turn the Mercedes over to Progressive and it will be sold at auction to help the company recover some of the costs associated with paying an insurance claim. As a result of Progressive’s participation in this investigation, the 2003 BMW X5 was recovered and returned to its rightful owner – a Progressive customer.

The Delaware State Police is continuing to investigate who else may have supplied cars to Mr. Charlemagne, with the intent of fraudulently filing claims to collect from insurance companies.

The Progressive group of insurance companies, in business since 1937, comprises the nation's third largest auto insurance group and provides drivers with competitive rates and 24/7, in-person service. The companies offer insurance by phone at 1-800-PROGRESSIVE, online at progressive.com and through more than 30,000 independent insurance agencies. The Progressive Corporation, the holding company, has headquarters in Mayfield Village, Ohio. More information can be found at progressive.com.