Erie, Pa. --- December 23, 1997 --- Erie Insurance Group ranks 26th on Fortune magazine's inaugural list of the "100 Best Companies to Work for In America." The list, which will appear in the January 12, 1998 issue of the magazine, was compiled through surveys of more than 20,000 randomly selected employees at companies across the United States.

"This is an honor for our company," commented Erie Insurance Group President and CEO Stephen A. Milne. "We try to create a positive work environment by following the Golden Rule of treating others the way you wish to be treated. We do that for our employees and agents, and they, in turn, treat our Policyholders with a very keen sensitivity and unique respect. We're very proud to be in such distinguished company."

The Fortune list was developed through the magazine's collaboration with best-selling authors Robert Levering and Milton Moskowitz, using methodology similar to that used for their books, The 100 Best Companies to Work for in America. Erie Insurance Group has appeared in all four editions of this book and is one of only 57 companies from the most recent edition to be included in the Fortune listing. The ERIE is also one of only 30 companies remaining from the original book that was published in 1984.

Other notables on the "100 Best" list include Southwest Airlines, L.L. Bean, Lands' End, Microsoft, Hewlett-Packard and Procter & Gamble.

"The positive feelings our employees have about being associated with our company inevitably have an affect on their performance," Milne added. "They understand that everything they do will have a direct and important influence on the success of our company. And they are anxious to play a role in that success. Feeling a part of the 'ERIE Family' also has special meaning to our employees. That is the type of environment we strive to promote."

More than 238 companies were identified by Levering and Moskowitz as viable candidates for this list. Each company that agreed to participate distributed a survey to 225 randomly selected employees. The survey was designed to evaluate trust in management, pride in work/company and camaraderie. Participating companies were also required to complete the Hewitt People Practices Inventory, a 29-page compensation and benefits questionnaire.

Erie Insurance Group member companies include the Erie Insurance Exchange, Flagship City Insurance Company, Erie Family Life Insurance Company, Erie Insurance Company, the Erie Insurance Property and Casualty Company and the Erie Insurance Company of New York.

Erie Insurance Exchange, based in Erie, Pennsylvania, is the 12th largest insurer of private passenger automobiles and the 24th largest property and casualty insurer in the United States. Erie Insurance Group operates in nine states and the District of Columbia.