ERIE, Pa. --- December 30, 1998 --- Beginning January 1, 1999, Erie Insurance Group will offer its insurance products to Illinois residents. Independent agents representing Erie Insurance Group will write all lines of insurance the company offers, including auto, home, business and life.

This is the tenth state, in addition to the District of Columbia, served by The ERIE. Erie Insurance also writes in Indiana, Maryland, New York, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia and West Virginia.

"We are excited about serving the people of Illinois 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. "Our strategy of entering states adjacent to existing marketing territories has consistently proven successful, and we are confident Illinois will provide similar opportunities."

Known for competitive rates and superior service, Erie Insurance was established in 1925 and is headquartered in Erie, Pa. An Illinois Branch Office has been established in Peoria, Ill. Headed by Chip Dufala, CIC, the Branch Office is responsible for appointing new agents and providing claims service to Illinois policyholders. ERIE's own claims adjusters will be working out of the Illinois Branch Office to provide quick, efficient service to policyholders.

The Peoria Branch Office is located at 2409 North Main St., Suite 200, East Peoria, IL 61611. The office can be reached by calling (309) 698-1825 or toll-free at (888) 335-3743.

Independent insurance agents representing Erie Insurance in Illinois include the following:

• Gerald Atteberry, Atteberry - Oldweiler Insurance Agency, Decatur, Ill.
• Wayne Bell, Bell Insurance Agency, Peoria, Ill.
• Lawrence and Lynn Corbin, Corbin Insurance Agency, Washington, Ill.
• Donald Goodenow, Jr., Goodenow Insurance Agency, Inc., Springfield, Ill.
• Perry Grieme, Parker-Grieme Insurance Agency, Lincoln, Ill.
• Ronald Hartz and Bill Feather, Schuneman Insurance Agency, Inc., Sterling, Ill.
• Charles Lavin, The Charles J. Lavin Companies, Peoria, Ill.
• Carrie Loebach, Jim and Joanne Redlich, Loebach Redlich Insurance, Inc., Ottawa, Ill.
• Billy Martin, Bill Martin Insurance Agency, Pekin, Ill.
• Robert Oetting, Bob Oetting & Associates, Charleston and Danville, Ill.
• Connie and Charles Schwartz, Schwartz Insurance Agency, Champaign, Ill.
• Lee Sharman, Lee Sharman & Associates Insurance Agency, Inc., Kankakee, Ill.
• John Sticklen, Sticklen Insurance Agency, Urbana, Ill.
• Justin Thomas, Thomas Insurance Agency, Champaign, Ill.
• James Ward, Jr. and James Ward, Sr., J. M. Ward & Co. Insurance Services, Springfield, Ill.

With nearly 2.5 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, is the 12th largest insurer of private passenger automobiles in the country. Erie Insurance Group includes seven companies operating in nine states and the District of Columbia. Erie Indemnity Company (NASDAQ - ERIE) is the management company for Erie Insurance Group.