Comtec, Ltd. Chosen To Replace Insurance Systems At Center Mutual Insurance Company

February 28, 2006

Comtec’s Total Insurance System (TIS) Purchased by Midwest Insurance Company to Replace Legacy Insurance Systems

Comtec today announced that it has signed an enterprise wide software agreement with Center Mutual Insurance Company (CMIC). The new contract reflects continued momentum in Comtec’s expansion and continued validation from the P&C markets for comprehensive, flexible and business driven solutions.

Center Mutual will deploy Comtec’s flagship product Total Insurance System (TIS) with endto-end functionality for Policy Administration, Claims, Reinsurance and Collections. Center Mutual’s selection of Comtec follows an extensive and competitive bidding process against numerous recognized vendors. The software vendor analysis process was managed on Center Mutual’s behalf by Appix, Inc., a leading consulting firm for the P&C Insurance market. Appix will assist in the implementation process by providing project management, business analysis and additional services for CMIC.

"Having reviewed numerous vendor solutions, we concluded that Comtec TIS was the cutting edge technology we were looking for to best address our need for an end-to-end insurance solution," said Mr. Robert J. Hovland, President of CMIC. "Comtec demonstrated that it had the scale and ability to meet our requirements, and most importantly, ensure that we can maintain our commitment to deliver the best products and services possible to our existing and future customers."

Comtec CEO David Ghetler said: "We are delighted to be working with CMIC and for the opportunity to facilitate the company’s growth and continued success. Recognizing that their existing systems would be incapable of satisfying the growing demand from its agents and policyholders, we are honored Center Mutual chose TIS to deliver the flexibility, agility and speed necessary to compete effectively in today’s insurance market." David continued, "Our state of the art technology will provide CMIC with the ability to address the needs of its constituents, deliver superior insurance products and ensure the company’s growth well into the future."

About Comtec TIS

Since its inception in 1976, Comtec has become a central player in the Insurance software industry, helping many global and regional insurance clients gain a competitive advantage by developing, applying and implementing multi-scale software projects.

As an innovative pioneer specializing in P&C software, Comtec launched the state-of-the-art TIS (Total Insurance System) solution with roots in the Israeli market. At the heart of TIS is a dynamic rules-based and table-driven rating engine that enables P&C carriers to immediately respond to changing market conditions, adjust policy and underwriting rules on demand, and offer new products to comply with changing market needs.

Comtec quickly became the uncontested leader of the Israeli insurance market, and today dozens of major insurers and underwriters utilize Comtec’s comprehensive solution for the management of their P&C insurance activities across Europe and North America.

Comtec combines deep insurance industry experience with state-of-the-art technology and a highly dedicated, professional development team to meet the dynamic and growing needs of its diverse client base.

About CMIC

Founded in 1917, Center Mutual Insurance Company writes primarily home, auto, inland marine, farm, farm truck and farm semi-truck insurance in the Midwest.

Center Mutual initially offered insurance lines related to weather perils (fire, lightening, tornado, etc.) in the state of North Dakota. Over the years, Center Mutual expanded to offer additional lines of business including Auto, Homeowner’s, Farm, and Umbrella Liability.

Center Mutual markets its products through independent agencies to policyholders in North Dakota and South Dakota. The vast majority of Center Mutual’s business is generated through relationships with approximately 190 independent agencies.

Center Mutual writes the following lines of business in both North Dakota and South Dakota

• Personal Auto Insurance
• Homeowner’s Insurance
• Farm Owner’s Insurance
• Standard Farm Insurance
• Residential Fire Insurance
• Farm Truck Insurance
• Semi-Truck Insurance
• Umbrella Liability Insurance
• Inland Marine

Center Mutual currently utilizes a policy and claims administration system that was developed internally. The system was originally developed several years ago and has been modified significantly since its initial development.