ERIE, Pa. --- April 19, 1999 --- Erie Insurance Group will begin expanding its operations in Tennessee this year. While Erie Insurance has been licensed and operating in eastern Tennessee since 1987, the company will expand the marketing of its products westward in Tennessee.

Independent agents representing Erie Insurance Group will write all lines of insurance the company offers, including auto, home, business and life. Erie Insurance is currently represented by 34 agents in Tennessee and plans to significantly expand that number.

Steve Kinnaird has been appointed as the group's Tennessee branch manager and will be responsible for locating a branch office in Tennessee, appointing new agents and providing claims service to Tennessee policyholders. Kinnaird has been with Erie Insurance since 1990 and has both claims and sales experience.

"We are excited about expanding our services to people throughout Tennessee and believe they will benefit from The ERIE's mission of providing superior service and the best possible insurance products at the lowest possible price," said Stephen A. Milne, President and Chief Executive Officer of Erie Insurance Group. "We intend to dedicate and focus our marketing effort in Tennessee with more agency representation and with high expectations of increased market penetration."

Known for competitive rates and superior service, Erie Insurance was established in 1925 and is headquartered in Erie, Pa. With nearly 2.5 million policyholders, Erie Insurance Group is the 17th largest property/casualty insurance group, and group member Erie Insurance Exchange 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.