Date: Thu, 18 Dec 1997 10:06:19 GMT Server: Stronghold/1.3 Ben-SSL/1.3 Apache/1.1.1 Content-type: text/html Content-length: 3326 Last-modified: Tue, 07 Oct 1997 19:57:38 GMT Frontier Adjusters of America, Inc. - Press Release June 27, 1997 Frontier Adjusters of America, Inc.

Released by Loring Group of Johnnie D. Johnson & Co., Inc.
50 Broad Street, NYC 10004 -- (212) 943-0620

For Immediate Release

FRONTIER ADJUSTERS OF AMERICA LOSES MAJOR CLIENT, INAUGURATES NATIONAL ACCOUNTS PROGRAM

PHOENIX, Arizona, June 27, 1997 - Frontier Adjusters of America, Inc. (ASE-FAJ) announced today, that due to the significant increase in competition for adjusting services within the insurance industry, one of its national clients has elected to acquire such services from sources other than Frontier. The company was informed that the phase-out period is expected to take approximately 60 days. License/franchise fees from this account represented 18.6% of Frontier's revenue in the fiscal year ended June 30, 1996 and is expected to contribute 16% of revenue for the 1997 fiscal year.

"In response to the increased competition to provide claims adjusting services to nationwide clients, Frontier earlier this year developed a national and regional accounts program that will enable our company to negotiate contracts on behalf of its licensees and franchisees," stated William Rocke, Frontier chairman and chief executive officer. "We expect this program to allow Frontier to be more aggressive in its approach to current trends in the industry. Although the program is as yet untried, we hope to see positive results in the newly beginning fiscal year."

Frontier Adjusters of America, Inc. licenses and franchises independent claims adjusters throughout North America, with more than 650 advertised locations at present in 50 states, the District of Columbia and Canada. The company also owns and operates independent insurance adjusting businesses in Arizona and Nevada.

This press release includes statements with respect to possible results of a newly implemented National and Regional Accounts Program that may constitute forward looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. These statements are subject to risks and uncertainties that could cause actual results to differ materially from the forward looking statements. Factors that would cause or contribute to such differences include, but are not limited to, increased competition from existing and new competitors for the provision of insurance adjusting services, lack of market response to the Company's newly implemented program, and general economic conditions.

For information at Frontier contact:

William J. Rocke, Chief Executive Officer and Chairman of the Board
(602) 264-1061

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