**Unistar update**
Monday August 16, 12:02 pm Eastern Time
Company Press Release
SOURCE: Unistar Financial Service Corp.
Unistar Announces Six-Month Financial Results
DALLAS, Aug. 16 /PRNewswire/ -- Unistar Financial Service Corp. (Amex: UAI - news) today announced that for the six months ended June 30, 1999, gross written premiums totaled $75.3 million, resulting in net income of $1.6 million, or .07 cents per share on a fully diluted basis. For the three months ended June 30, 1999, gross written
premiums of $31.3 million resulted in net income of $216,000 or .01 cents per share on a fully diluted basis. The decrease in premiums written, net income and earnings per share for the three month period ended June 30, 1999 is directly attributed to the seasonality of the auto insurance and financial services industries. The June 30, 1999
results were also impacted due to an increase in interest expense associated with a term loan. The term loan, which is in excess of $10 million, will be used to assist the company in executing its continued business strategy of being a consolidator in the auto insurance, and financial service industries.
Chairman and Chief Executive Officer, Marc A. Sparks, stated, ''Unistar continues to experience commendable earnings performance, especially considering our rapid growth rate. Our second quarter results do not reflect any wholesale insurance production income from our 71 retail auto insurance agency offices in Florida and California,
which we intend to have in place prior to year-end.''
Today, Unistar consists of:
-- 166 captive retail insurance agency offices in Texas, Florida and California
-- 495 appointed producing insurance agents in Texas
-- over 450 committed associates (employees)
-- a 30,000 square foot highly-technical paperless processing facility
-- four (4) wholesale auto insurance programs (direct bill and premium financed)
-- a premium finance company
-- a property and casualty insurance company
-- a reinsurance brokerage firm
-- a claims adjusting firm
-- two (2) full-service collision repair centers
-- a collision appraisal firm
-- a collision subrogation firm
-- a full-service multi-media department
Mr. Sparks further states, ''Unistar is a profitable, fast-paced, growth- oriented insurance agency consolidator with an established business and a sophisticated infrastructure, deriving 95% of our income from commissions, fees and interest income. While we remain acquisition and organic growth oriented, we are focusing the remainder of this year on improving profitability by realizing synergies and economies of scale, along with continued strategic alignment of the intellectual talent we have amassed.''
Headquartered in Dallas, Texas, Unistar Financial Service Corp. is a leading fully-integrated financial service holding corporation, specializing in auto insurance, renter's insurance, premium financing, and insurance claims management. Unistar Financial Service Corp.'s wholly-owned subsidiaries include U.S. Fidelity Insurance Services,
Great Southern, First Choice, Peak Underwriters, Advanced Underwriters and Unistar Select -- managing general agencies, Unistar Auto Insurance Agencies -- retail auto insurance agencies, Renter's Plus -- tenant insurance, Eagle Premium Finance Co., First Grampian Premium Finance Co., Eagle Claims Corp. -- an auto insurance claims company, Talon Financial Services -- a reinsurance brokerage, and Unistar Insurance Company (formerly International Surety & Casualty Company), a property and casualty insurance company. Additional information is
available at: www.unistarfinancial.com, or at www.prnewswire.com -- Company News on Call.
Except for historical information, the forward-looking statements in this news release involve risks and uncertainties and are subject to change based on various factors, including competitive conditions in the insurance industry, unpredictable developments in loss trends, changes in loss reserves, market acceptance of new coverages and
enhancements, and changes in levels of general business activity and economic conditions.
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SOURCE: Unistar Financial Service Corp.
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