TREK Holdings Corporation Acquires American Medical & Life Insurance Company

AMLI sets aggressive growth plan in key product and market segments

Hicksville, NY 01/31/06 - Mr. Donald J. Trudeau, Chairman of TREK HOLDING CORPORATION, based in Stamford, Ct., today announced TREK’s acquisition of American Medical and Life Insurance Company from its founder and principal shareholder, Dr. Jules Lane. The Hicksville based group insurance and employee benefits insurer founded in 1964, is licensed in 32 states and the District of Columbia, provides a host of insurance products to self-insured groups, labor unions, and other like organizations, including, but not limited to, medical stop loss, dental, life, disability, limited medical, vision and specialty market programs. The Company has planned expansion into additional states and will introduce new products over the next several quarters.

Mr. John Ollis, formerly of UNUM Provident, has been named Chairman, President and CEO, succeeding Dr. Lane, and will lead a seasoned team in pursuing AMLI’s aggressive growth agenda. Mr. Ollis brings more than 17 years of experience in sales, marketing and underwriting within the employee benefits field to his role. Prior to joining AMLI, he spent over 17 years with UNUM Provident most recently as the Senior Market Manager for UNUM Provident’s New York City office. He also served on the Board of Directors of First UNUM which is the New York domiciled subsidiary of UNUM Provident. In his most recent role, Mr. Ollis was responsible for the overall operation of the New York City sales office, the largest field office for UNUM Provident, overseeing more than 100 employees and managing annual revenues in excess of $500 Million.  In addition to Mr. Ollis, AMLI’s management team includes Mr. Norman Beckoff, Vice President and Chief Financial Officer; Mr. Thomas Force, Esq., Executive Vice President & General Counsel; Ms. Lorraine Classi, Executive Vice President and Mr. Brett Brandes, Vice President and Controller.

According to Mr. Ollis, AMLI will focus initially on the New York market segment of its business, while strengthening relations with brokers in other states where AMLI is licensed.  In commenting on the Company, Mr. Ollis said, "AMLI’s re-organization of staff, its new product concentrations and enhanced marketing and promotional efforts will be the focus of our initial efforts and drive the near term goals we have set for ourselves."

"We believe AMLI’s specialty products, which are created for and with insurance brokers, are well positioned in the marketplace," Mr. Ollis continued. "By improving our service and maintaining our market-driven product focus, while all the while staying flexible and nimble as a smaller-sized insurer, I am confident that we will successfully broaden our client base and prudently grow our business."

AMLI is presently a B+ rated, New York domiciled accident, health and life insurance company specializing in group life, health, dental, stop loss, student accident, vision, disability and limited medical programs as well as administration and stop loss programs for self-insured clients. In order to consummate the acquisition of AMLI and provide additional working capital, TREK was initially capitalized with approximately $15 million, of which $10.8 million was raised in a private placement arranged by Laidlaw & Company (UK) ltd.

For information on AMLI, call Thomas J. Force at (516) 822-8700 ext. 209 or Steve Acunto at CINN WORLDWIDE, INC. at (914) 966-3180 ext. 110.