Quotesmith.com Reports First-Quarter Financial Results

-- Net loss of $2.4 Million is 73% Reduction over 2000 Q1 Loss

-- Per-Policy Acquisition Costs Reduced by 58% over 2000 Q1

-- Instant Long-Term Care Insurance Quotes Go Live



Apr 24, 2001, 01:00 ET from Quotesmith.com, Inc.

    DARIEN, Ill., April 24 /PRNewswire Interactive News Release/ --
 Quotesmith.com, Inc., (Nasdaq: QUOT) today announced financial results for the
 first quarter ended March 31, 2001.
     "We made solid progress in the first quarter in that we reduced our net
 loss by 73 percent compared to the first quarter last year, reduced our
 marketing expenses by 72 percent and experienced only a 33 percent decline in
 new policy sales.  We also launched LTCompare, our new long-term care
 insurance brokerage service," said Robert Bland, chairman and CEO.  "Our
 current business plan objectives are to conserve capital, strive for
 profitability through further marketing and operating expense efficiencies and
 to introduce our new multi-company auto insurance engine in the second
 quarter."
     As previously reported, Quotesmith.com shareholders approved a 3-for-1
 reverse stock split, effective on March 7, 2001.  All share and per share
 amounts in this press release have been retroactively adjusted to reflect the
 stock split.
     Quotesmith.com ended the quarter with cash and short-term investments of
 $24.9 million, and no debt.
 
     Financial Results
     Quotesmith.com reported revenue of $2.4 million for the first quarter of
 2001, representing a decrease of 38 percent over revenue of $3.9 million in
 the same quarter a year ago.  Net loss for the first quarter of 2001 was
 $2.4 million, or $0.43 per share, as compared to a net loss of $9.1 million or
 $1.42 per share for the same period in 2000.
     Marketing expenses for the first quarter of 2001 were $2.9 million, a
 decrease of 72 percent over the $10.1 million spent for marketing in the first
 quarter of 2000.
 
     Policies Sold Recap
     In the 2001 first quarter Quotesmith.com sold a total of 6,319 new
 policies, representing a decrease of 33 percent from 9,388 policies sold in
 the same quarter a year ago.
     Sales of new health and other insurance policies amounted to 1,096 in the
 first quarter of 2001, which was an increase of 39 percent over 786 such sales
 in the first quarter of 2000.
     Quotesmith.com is committed to diversifying its revenue base by creating
 new revenue streams from the sale of multiple lines of insurance.  As a
 percentage of total policies sold, sales of non-term life policies rose to 17
 percent of total policies sold in the first quarter of 2001 as compared to 8
 percent of total policies sold in the like period of 2000.
 
     Reduced Customer Acquisition Costs
     Quotesmith.com reported progress in lowering per-policy customer
 acquisition costs (total marketing costs divided by total new policies sold)
 as a result of reduced U.S. media rates and more efficient deployment of
 marketing dollars.  The per-policy acquisition cost in the first quarter of
 2001 amounted to $451 and compares favorably to $1,080 for the first quarter
 of 2000.
 
     Share Repurchase Program
     As part of a previously announced share repurchase program, Quotesmith.com
 repurchased 404,124 shares in the first quarter of 2001 at an average price of
 $1.81 per share.  The company had 5,517,779 shares outstanding as of March 31,
 2001.  In the fourth quarter of 2000 the company repurchased a total of
 487,000 shares at an average price of $2.25 per share.
 
     David Vickers Resigns as Chief Financial Officer
     Quotesmith.com also announced that its chief financial officer, David
 Vickers, has resigned effective June 1 to pursue other interests.  "Dave
 Vickers is a friend, an excellent financial strategist and we wish him well in
 his new pursuits," said Bland.  The Quotesmith.com board has begun a search to
 find a new CFO.
 
     Revised Financial Targets for 2001
     Quotesmith.com is revising the financial targets for 2001 that were
 announced on January 23, 2001.  The company currently intends to further
 reduce subsequent 2001 marketing expenditures below the levels experienced in
 the first quarter of 2001 and does not intend to increase its quarterly
 marketing expenditures again until the launch of its new personal automobile
 insurance quotation engine has been successful and is producing new policy
 sales at a satisfactory pace.  Based upon these and other factors, the company
 anticipates 2001 revenues of approximately $8 to $9 million with a net loss
 range of approximately $7 to $8 million.  The company is currently projecting
 2001 year-end cash and investment balances of approximately $18 to
 $19 million.
     Quotesmith.com believes that its current capital structure, including cash
 and short term investments of $24.9 million, is adequate to reach
 profitability without the necessity of additional debt or equity financing.
     The company does not provide confirmation or updates of its targets except
 through public announcements.
 
     New Products and Services
     LTCompare(R).  On February 8th of this year Quotesmith.com launched its
 new Web-based long-term care insurance price comparison and purchasing service
 that promises to replace hours of research and lead to maximum savings for
 beleaguered long-term care insurance buyers and their families.  LTCompare now
 provides instant quotes from about 15 household-name insurers and includes
 one-click downloads of brochures, comparative buying guides and regulatory
 information.  Long-term care insurance is considered by many to be the most
 expensive line of personal insurance and one of the most complex for families
 to research.  LTCompare should add a larger-ticket commission product to the
 Quotesmith.com Web site content portfolio.
     Personal Auto.  In describing the current status of the rollout of
 Personal Auto, Bland remarked, "We've been hard at work for over one year on a
 project of vital long-term importance to us.  And even though this project is
 about 6 months behind schedule, we intend to enter the auto insurance
 brokerage business and launch our brand new, multi-company auto insurance
 price comparison engine by June 30th of this year."  The rollout and
 commercial availability of this new service will be conducted on a
 state-by-state basis, beginning with the highest population states first.  The
 goal on this ambitious project is to provide auto insurance shoppers of all
 ages and profiles with a true panorama of comparative information on a scale
 not seen before.
     QuotesmithPro(R) -- In an effort to leverage its existing technology and
 create new revenue streams, Quotesmith.com also intends to launch
 QuotesmithPro as a Web-based subscription service designed for use by
 insurance agents, brokers, consultants and financial planners.  QuotesmithPro
 will help insurance professionals transition from the drudgery of having to
 deal with multiple-company Web sites and outdated desktop systems by providing
 an easy, fast and single-source information platform from which customer-ready
 proposals can be produced in seconds.  Subscription pricing for this new
 service has not yet been set.
     Additional lines scheduled for release in 2001 also include homeowner's
 insurance and international medical insurance.
 
     Recent Accolades for Quotesmith.com
     On April 24, 2001 Quotemsith.com was named as one of the Top 10 Insurance
 Web sites by Personal Finance Online magazine in its inaugural June/July 2001
 issue, which appears on newsstands today.  On December 26, 2000,
 FinanCenter.com awarded Quotesmith.com a #1 ranking (99.3 score out of 100)
 based upon an extensive, multi-site comparison of term life premiums.  On
 September 29, 2000, Money magazine named Quotesmith.com "One of the Top 50
 Financial Websites."  On September 18, 2000, Quotesmith.com was named "Best of
 the Net" by About.com's Guide to Personal Life Insurance.
 
     About Quotesmith.com
     Founded in 1984, Quotesmith.com owns and operates the industry's largest
 and most comprehensive insurance price comparison service.  The Quotesmith.com
 Insurance Commerce Platform allows insurance shoppers to instantly view the
 best prices being offered by more than 300 leading companies, achieve maximum
 savings and have the freedom to buy from the company of their choice.
 Quotesmith.com also provides personalized customer service assistance and
 policy placement services for its customers.  Quotesmith.com generates
 revenues from the receipt of commissions and fees paid by insurance companies.
 Shares of Quotesmith.com trade on the Nasdaq National Market under the symbol
 "QUOT."
 
     Cautions about Forward-Looking Statements
     Forward-looking statements in this release including, without limitation,
 statements relating to the Company's plans, strategies, objectives,
 expectations, intentions, and adequacy of resources, are made pursuant to the
 safe harbor provisions of the Private Securities Litigation Reform Act of
 1995.  These forward-looking statements involve known and unknown risks,
 uncertainties, and other factors that may cause the actual results,
 performance or achievements of the Company to be materially different from any
 future results, performance or achievements expressed or implied by such
 forward-looking statements.  These factors include, among others, the
 following:  Quotesmith.com's limited e-commerce operating history, anticipated
 losses, unpredictability of future revenues, potential fluctuations in
 quarterly operating results, seasonality, consumer trends, competition, risks
 of system interruption, the evolving nature of its business model, the
 increasingly competitive online commerce environment, dependence on continuing
 growth of online commerce and risks associated with capacity constraints and
 the management of growth and other factors described in filings of the Company
 with the Securities and Exchange Commission, including its Form 10-K for the
 year ended December 31, 2000.  The Company undertakes no obligation to
 publicly update or revise any forward-looking statements, whether as a result
 of new information, future events or otherwise.
 
     This communication appears as a matter of information only and is not an
 insurance solicitation.  Accordingly, no employee of Quotesmith.com, Inc. is
 recommending or endorsing any specific insurance company, coverage or policy
 type within this communication.  Some insurance companies appear at
 Quotesmith.com for purely informational purposes only and pay no compensation
 to Quotesmith.com and some insurers pay commissions or fees to Quotesmith.com
 based upon premium volume or traffic activity produced by Quotesmith.com.
 Quote availability by state of residence or any other factor is subject to
 change without notice.
 
     Quotesmith.com is a registered trademark and/or registered service mark of
 Quotesmith.com, Inc.  All other names are trademarks of their respective
 owners.
 
 
                                QUOTESMITH.COM, INC.
                              STATEMENT OF OPERATIONS
                       (In thousands, except per share data)
 
                                                  Quarter Ended
                                    March 31,      December 31,    March 31,
                                       2001            2000          2000
 
     Revenues:
       Commissions and fees           $2,391          $2,635       $ 3,870
       Other                              16              11            12
     Total revenues                    2,407           2,646         3,882
     Expenses:
       Selling & marketing             2,851           3,037        10,138
       Operations                      1,489           1,563         2,263
       General & administrative          913             942         1,226
     Total expenses                    5,253           5,542        13,627
     Operating loss                   (2,846)         (2,896)       (9,745)
     Interest income                     400             491           620
 
     Net loss                       $ (2,446)        $(2,405)      $(9,125)
 
     Net loss per common share,
      basic and diluted               $(0.43)         $(0.39)       $(1.42)
 
 
     Weighted average common
      shares and equivalents
      outstanding, basic and
      diluted                          5,624           6,240         6,408
 
 
                            SELECTED BALANCE SHEET DATA
                                   (In thousands)
 
                                                     March 31,    December 31,
                                                       2001           2000
 
     Cash and equivalents                              $4,015         $4,269
     Investments                                       20,836         24,028
     Commissions receivable                             1,213          1,541
     Other assets                                         446            453
     Total current assets                              26,510         30,291
 
     Total assets                                     $28,861        $32,643
 
     Total current liabilities                         $2,227         $2,848
 
     Total liabilities                                  2,345          2,976
 
     Total stockholders' equity                        26,516         29,667
 
     Total liabilities & stockholders' equity         $28,861        $32,643
 
 
                               OTHER STATISTICAL DATA
 
                                                 Quarter Ended
                                   March 31,      December 31,     March 31,
                                      2001            2000           2000
 
     Completed Quotes
       Term life                     465,191         415,255       656,390
       Health and Other              418,284         386,764       703,972
        Total completed quotes       883,475         802,019     1,360,362
 
     New Policies Sold
       Term life                       5,223           5,891         8,602
       Health and Other                1,096           1,095           786
        Total policies paid            6,319           6,986         9,388
 
     Average first year commission
      per new policy sold               $378            $377          $412
 
     Marketing cost per new
      policy sold                       $451            $435        $1,080
 
     Operating cost per new policy
      sold                              $236            $224          $241
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X71741526
 
 

SOURCE Quotesmith.com, Inc.
    DARIEN, Ill., April 24 /PRNewswire Interactive News Release/ --
 Quotesmith.com, Inc., (Nasdaq: QUOT) today announced financial results for the
 first quarter ended March 31, 2001.
     "We made solid progress in the first quarter in that we reduced our net
 loss by 73 percent compared to the first quarter last year, reduced our
 marketing expenses by 72 percent and experienced only a 33 percent decline in
 new policy sales.  We also launched LTCompare, our new long-term care
 insurance brokerage service," said Robert Bland, chairman and CEO.  "Our
 current business plan objectives are to conserve capital, strive for
 profitability through further marketing and operating expense efficiencies and
 to introduce our new multi-company auto insurance engine in the second
 quarter."
     As previously reported, Quotesmith.com shareholders approved a 3-for-1
 reverse stock split, effective on March 7, 2001.  All share and per share
 amounts in this press release have been retroactively adjusted to reflect the
 stock split.
     Quotesmith.com ended the quarter with cash and short-term investments of
 $24.9 million, and no debt.
 
     Financial Results
     Quotesmith.com reported revenue of $2.4 million for the first quarter of
 2001, representing a decrease of 38 percent over revenue of $3.9 million in
 the same quarter a year ago.  Net loss for the first quarter of 2001 was
 $2.4 million, or $0.43 per share, as compared to a net loss of $9.1 million or
 $1.42 per share for the same period in 2000.
     Marketing expenses for the first quarter of 2001 were $2.9 million, a
 decrease of 72 percent over the $10.1 million spent for marketing in the first
 quarter of 2000.
 
     Policies Sold Recap
     In the 2001 first quarter Quotesmith.com sold a total of 6,319 new
 policies, representing a decrease of 33 percent from 9,388 policies sold in
 the same quarter a year ago.
     Sales of new health and other insurance policies amounted to 1,096 in the
 first quarter of 2001, which was an increase of 39 percent over 786 such sales
 in the first quarter of 2000.
     Quotesmith.com is committed to diversifying its revenue base by creating
 new revenue streams from the sale of multiple lines of insurance.  As a
 percentage of total policies sold, sales of non-term life policies rose to 17
 percent of total policies sold in the first quarter of 2001 as compared to 8
 percent of total policies sold in the like period of 2000.
 
     Reduced Customer Acquisition Costs
     Quotesmith.com reported progress in lowering per-policy customer
 acquisition costs (total marketing costs divided by total new policies sold)
 as a result of reduced U.S. media rates and more efficient deployment of
 marketing dollars.  The per-policy acquisition cost in the first quarter of
 2001 amounted to $451 and compares favorably to $1,080 for the first quarter
 of 2000.
 
     Share Repurchase Program
     As part of a previously announced share repurchase program, Quotesmith.com
 repurchased 404,124 shares in the first quarter of 2001 at an average price of
 $1.81 per share.  The company had 5,517,779 shares outstanding as of March 31,
 2001.  In the fourth quarter of 2000 the company repurchased a total of
 487,000 shares at an average price of $2.25 per share.
 
     David Vickers Resigns as Chief Financial Officer
     Quotesmith.com also announced that its chief financial officer, David
 Vickers, has resigned effective June 1 to pursue other interests.  "Dave
 Vickers is a friend, an excellent financial strategist and we wish him well in
 his new pursuits," said Bland.  The Quotesmith.com board has begun a search to
 find a new CFO.
 
     Revised Financial Targets for 2001
     Quotesmith.com is revising the financial targets for 2001 that were
 announced on January 23, 2001.  The company currently intends to further
 reduce subsequent 2001 marketing expenditures below the levels experienced in
 the first quarter of 2001 and does not intend to increase its quarterly
 marketing expenditures again until the launch of its new personal automobile
 insurance quotation engine has been successful and is producing new policy
 sales at a satisfactory pace.  Based upon these and other factors, the company
 anticipates 2001 revenues of approximately $8 to $9 million with a net loss
 range of approximately $7 to $8 million.  The company is currently projecting
 2001 year-end cash and investment balances of approximately $18 to
 $19 million.
     Quotesmith.com believes that its current capital structure, including cash
 and short term investments of $24.9 million, is adequate to reach
 profitability without the necessity of additional debt or equity financing.
     The company does not provide confirmation or updates of its targets except
 through public announcements.
 
     New Products and Services
     LTCompare(R).  On February 8th of this year Quotesmith.com launched its
 new Web-based long-term care insurance price comparison and purchasing service
 that promises to replace hours of research and lead to maximum savings for
 beleaguered long-term care insurance buyers and their families.  LTCompare now
 provides instant quotes from about 15 household-name insurers and includes
 one-click downloads of brochures, comparative buying guides and regulatory
 information.  Long-term care insurance is considered by many to be the most
 expensive line of personal insurance and one of the most complex for families
 to research.  LTCompare should add a larger-ticket commission product to the
 Quotesmith.com Web site content portfolio.
     Personal Auto.  In describing the current status of the rollout of
 Personal Auto, Bland remarked, "We've been hard at work for over one year on a
 project of vital long-term importance to us.  And even though this project is
 about 6 months behind schedule, we intend to enter the auto insurance
 brokerage business and launch our brand new, multi-company auto insurance
 price comparison engine by June 30th of this year."  The rollout and
 commercial availability of this new service will be conducted on a
 state-by-state basis, beginning with the highest population states first.  The
 goal on this ambitious project is to provide auto insurance shoppers of all
 ages and profiles with a true panorama of comparative information on a scale
 not seen before.
     QuotesmithPro(R) -- In an effort to leverage its existing technology and
 create new revenue streams, Quotesmith.com also intends to launch
 QuotesmithPro as a Web-based subscription service designed for use by
 insurance agents, brokers, consultants and financial planners.  QuotesmithPro
 will help insurance professionals transition from the drudgery of having to
 deal with multiple-company Web sites and outdated desktop systems by providing
 an easy, fast and single-source information platform from which customer-ready
 proposals can be produced in seconds.  Subscription pricing for this new
 service has not yet been set.
     Additional lines scheduled for release in 2001 also include homeowner's
 insurance and international medical insurance.
 
     Recent Accolades for Quotesmith.com
     On April 24, 2001 Quotemsith.com was named as one of the Top 10 Insurance
 Web sites by Personal Finance Online magazine in its inaugural June/July 2001
 issue, which appears on newsstands today.  On December 26, 2000,
 FinanCenter.com awarded Quotesmith.com a #1 ranking (99.3 score out of 100)
 based upon an extensive, multi-site comparison of term life premiums.  On
 September 29, 2000, Money magazine named Quotesmith.com "One of the Top 50
 Financial Websites."  On September 18, 2000, Quotesmith.com was named "Best of
 the Net" by About.com's Guide to Personal Life Insurance.
 
     About Quotesmith.com
     Founded in 1984, Quotesmith.com owns and operates the industry's largest
 and most comprehensive insurance price comparison service.  The Quotesmith.com
 Insurance Commerce Platform allows insurance shoppers to instantly view the
 best prices being offered by more than 300 leading companies, achieve maximum
 savings and have the freedom to buy from the company of their choice.
 Quotesmith.com also provides personalized customer service assistance and
 policy placement services for its customers.  Quotesmith.com generates
 revenues from the receipt of commissions and fees paid by insurance companies.
 Shares of Quotesmith.com trade on the Nasdaq National Market under the symbol
 "QUOT."
 
     Cautions about Forward-Looking Statements
     Forward-looking statements in this release including, without limitation,
 statements relating to the Company's plans, strategies, objectives,
 expectations, intentions, and adequacy of resources, are made pursuant to the
 safe harbor provisions of the Private Securities Litigation Reform Act of
 1995.  These forward-looking statements involve known and unknown risks,
 uncertainties, and other factors that may cause the actual results,
 performance or achievements of the Company to be materially different from any
 future results, performance or achievements expressed or implied by such
 forward-looking statements.  These factors include, among others, the
 following:  Quotesmith.com's limited e-commerce operating history, anticipated
 losses, unpredictability of future revenues, potential fluctuations in
 quarterly operating results, seasonality, consumer trends, competition, risks
 of system interruption, the evolving nature of its business model, the
 increasingly competitive online commerce environment, dependence on continuing
 growth of online commerce and risks associated with capacity constraints and
 the management of growth and other factors described in filings of the Company
 with the Securities and Exchange Commission, including its Form 10-K for the
 year ended December 31, 2000.  The Company undertakes no obligation to
 publicly update or revise any forward-looking statements, whether as a result
 of new information, future events or otherwise.
 
     This communication appears as a matter of information only and is not an
 insurance solicitation.  Accordingly, no employee of Quotesmith.com, Inc. is
 recommending or endorsing any specific insurance company, coverage or policy
 type within this communication.  Some insurance companies appear at
 Quotesmith.com for purely informational purposes only and pay no compensation
 to Quotesmith.com and some insurers pay commissions or fees to Quotesmith.com
 based upon premium volume or traffic activity produced by Quotesmith.com.
 Quote availability by state of residence or any other factor is subject to
 change without notice.
 
     Quotesmith.com is a registered trademark and/or registered service mark of
 Quotesmith.com, Inc.  All other names are trademarks of their respective
 owners.
 
 
                                QUOTESMITH.COM, INC.
                              STATEMENT OF OPERATIONS
                       (In thousands, except per share data)
 
                                                  Quarter Ended
                                    March 31,      December 31,    March 31,
                                       2001            2000          2000
 
     Revenues:
       Commissions and fees           $2,391          $2,635       $ 3,870
       Other                              16              11            12
     Total revenues                    2,407           2,646         3,882
     Expenses:
       Selling & marketing             2,851           3,037        10,138
       Operations                      1,489           1,563         2,263
       General & administrative          913             942         1,226
     Total expenses                    5,253           5,542        13,627
     Operating loss                   (2,846)         (2,896)       (9,745)
     Interest income                     400             491           620
 
     Net loss                       $ (2,446)        $(2,405)      $(9,125)
 
     Net loss per common share,
      basic and diluted               $(0.43)         $(0.39)       $(1.42)
 
 
     Weighted average common
      shares and equivalents
      outstanding, basic and
      diluted                          5,624           6,240         6,408
 
 
                            SELECTED BALANCE SHEET DATA
                                   (In thousands)
 
                                                     March 31,    December 31,
                                                       2001           2000
 
     Cash and equivalents                              $4,015         $4,269
     Investments                                       20,836         24,028
     Commissions receivable                             1,213          1,541
     Other assets                                         446            453
     Total current assets                              26,510         30,291
 
     Total assets                                     $28,861        $32,643
 
     Total current liabilities                         $2,227         $2,848
 
     Total liabilities                                  2,345          2,976
 
     Total stockholders' equity                        26,516         29,667
 
     Total liabilities & stockholders' equity         $28,861        $32,643
 
 
                               OTHER STATISTICAL DATA
 
                                                 Quarter Ended
                                   March 31,      December 31,     March 31,
                                      2001            2000           2000
 
     Completed Quotes
       Term life                     465,191         415,255       656,390
       Health and Other              418,284         386,764       703,972
        Total completed quotes       883,475         802,019     1,360,362
 
     New Policies Sold
       Term life                       5,223           5,891         8,602
       Health and Other                1,096           1,095           786
        Total policies paid            6,319           6,986         9,388
 
     Average first year commission
      per new policy sold               $378            $377          $412
 
     Marketing cost per new
      policy sold                       $451            $435        $1,080
 
     Operating cost per new policy
      sold                              $236            $224          $241
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X71741526
 
 SOURCE  Quotesmith.com, Inc.