Erie, Pa. --- June 16, 1999 --- Erie Indemnity Company (Nadaq: ERIE) announced today that Jeffrey A. Ludrof, CPCU, AIC, CIC, LUTCF, has been appointed executive vice president of Insurance Operations, effective immediately. Ludrof will be responsible for all marketing, claims, underwriting, customer service and branch operations related to The ERIE's property/casualty insurance lines of business.

Ludrof has served The ERIE for more than 18 years in a variety of capacities. He began his career with The ERIE in 1981 as a claims adjuster in the Allentown/Bethlehem Branch Office and became a district sales manager in 1985. In 1989, he was promoted to assistant vice president and manager of the Erie Branch Office. In 1993, he was appointed one of the company's first regional vice presidents and was promoted in 1994 to senior vice president and division officer of the Claims Division.

"I have a great deal of confidence in Jeff's abilities to lead our insurance operations," said Stephen A. Milne, president and chief executive officer of Erie Insurance Group. "Jeff distinguished himself as a top performer early in his career when he earned the H. O. Hirt Service Award in 1984 for outstanding claims service. He later went on to pioneer many innovations in sales and customer service. His real management talent lies in his ability to set the course and provide an environment where employees can succeed in upholding the company's philosophy of being 'Above All in Service.'"

A native of Allentown, Ludrof earned a Bachelor of Science degree in business administration magna cum laude from Bloomsburg University in Bloomsburg, Pa. He is a member of the Society of Chartered Property Casualty Underwriters, the Society of Certified Insurance Counselors and the Leadership Erie Alumni Association.

Replacing Ludrof in the company's top claims position, senior vice president and division officer of Claims, is Barry Stiles, AIC, CIC, CPIA. Stiles has served as vice president and manager of the Erie Branch Office since 1993. He joined The ERIE as a claims adjuster in 1977. He was named claims procedural analyst in 1984 and branch claims operations administrator in 1986. In 1987, he was appointed assistant vice president and manager, Branch Claims Development. In 1991, he was named assistant vice president and manager, Branch Claims Operations.

Dave Bolton, CIC, CPIA, LUTCF, has been named assistant vice president and manager of the Erie Branch. Bolton has served as Erie Branch sales manager since 1989. He joined The ERIE as a claims adjuster in 1977 and became a district sales manager in 1981. Bolton was appointed assistant vice president in 1993.

With more than 2.6 million policyholders, Erie Insurance Group is the 17th largest property/casualty insurance group in the United States. Erie Insurance Exchange, a member of the Group, was established in Erie, Pa. in 1925 and today is the 12th largest insurer of private passenger automobiles in the country. Erie Insurance Group includes seven companies operating in 10 states and the District of Columbia. Erie Indemnity Company (Nasdaq: ERIE) is the management company for Erie Insurance Group.