PRESS RELEASE

Applied Systems announces industry’s first claims download

Pilot agency sees value for client servicing

University Park, IL— September 12, 2007— Insurance technology company Applied Systems, Inc., today announced the industry’s first download of claims data into an automated agency management system, heralding limitless possibilities for claim servicing at the agency level.

In a pilot process begun August 1, Frankenmuth Mutual Insurance Company has been daily downloading claims information into TAM (The Agency Manager)®, the Applied Systems agency management system used by Top O’Michigan Insurance Agency based in Alpena.

Claims download is available at no added cost for carriers and agencies using TAM and its interface services. Available now with the newest TAM general release, claims download allows a carrier to transmit all daily claim activities within nightly download communications to an agency.

Similar to existing policy and direct bill download processes, claims download automatically locates corresponding accounts and policies within TAM and creates new records based on the carrier’s claim activity. The claims download process complements existing real-time claims inquiry, which allows agencies on-demand views of carrier claims information and loss runs.

“We are really excited that this functionality will truly benefit agencies at every level of servicing their customers,” said James P. Kellner, Applied Systems chairman and CEO. “With the implementation of claims download, CSRs and producers now have automatically updated views of complete and accurate customer data.”

Kellner said claims download continues the progress of automatic data synchronization that Applied Systems began nearly two decades ago with policy download and advanced with direct bill commission download. The next major use of download technology, Kellner said, will be for mass delivery of Applied Alerts!™ , carrier messages to update Applied Systems client agencies and direct CSR and producer workflows.

Top O’Michigan and Frankenmuth like the claims download pilot results and are confident about what the process means for the way they do business.

“Claims download is such an easy way for an agency to keep claims information up-to-date without the tedious tasks we used to do manually,” said Brian Bartosh, Top O’Michigan president. “We’re saving such huge amounts of time, that we can spend more time relationship-building and claim-servicing.”

Eric Wachowicz, assistant manager for eBusiness Systems at Frankenmuth Financial Group, said the carrier will deploy claims download for any agency that wants it after implementing the newest TAM.

“This service allows us to provide additional data to our agency partners, which provides them more efficiency and gives us a competitive advantage,” Wachowicz said. “We’re heavily involved in utilizing ACORD XML standards, so we’re very excited that Applied was able to partner with us and develop claims download using XML.”

To pilot claims download, Top O’Michigan was equipped with the newest TAM version before last week’s general release of Applied Systems agency and broker management systems, which include TAM 9.0, Vision 5.0 and DORIS 8.0.

Applied Systems, Inc., develops and supports insurance agency management systems and provides services for accounting, customer, policy, claims management, and all related agency functions. More than 126,000 users in 11,000 agencies of every size and complexity level use Applied Systems technology and services. The company leads the industry in agency-carrier real-time and batch communication solutions. Applied Systems automates insurance transactions at every distribution level from consumer through carrier, providing technical support and professional services to maximize customers’ return on investment.