Erie, Pa. -- June 12, 1997 -- Ohio residents insured with Erie Insurance Group may be paying less for personal auto and homeowners insurance coverage as a result of rate changes that are scheduled to go into effect on June 15, 1997. The reduced rate comes primarily as a result of an increase in the company's "Multi-Policy Discount," from 5 percent to 15 percent on both preferred and standard automobile insurance Erie Insurance writes in Ohio. That means when policyholders insure both a car and a home with Erie Insurance they will qualify for a 15 percent discount on their auto insurance. Such policyholders also receive a 10 percent discount on their homeowners insurance.

According to Stephen A. Milne, president and chief executive officer of the Erie, Pa. based insurer, "These changes are in The ERIE's spirit of providing the best possible insurance for the lowest possible price. They will result in a 5.6 percent statewide premium reduction, affecting almost 60 percent of the private passenger auto insurance we issue in Ohio." Current ERIE policyholders will realize the discounts at their next policy renewal.

Erie Insurance is the 12th largest insurer of private passenger automobiles and the 24th largest property/casualty insurer in the United States. In Ohio, where the Company has branch offices in Canton and Columbus, Erie Insurance is the 10th largest insurer of private passenger automobiles and the 11th largest writer of homeowners insurance.

Erie Indemnity Company is the principal management company for the member companies of the Erie Insurance Group which includes 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. The Group operates in nine states and the District of Columbia. Erie Indemnity Company's class A non-voting common stock is listed on the Nasdaq National Market under the symbol "ERIE."

For more information about how you can save on your auto and homeowners insurance, talk to your ERIE agent. Use our online Agent Locator service to find an ERIE agent near you.