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Quotesmith.com, Inc. Announces Receipt of Nasdaq Delisting Warning Notice; Considers One-For-Six Reverse Stock Split

Quotesmith.com, Inc. (ticker: QUOT, exchange: NASDAQ) News Release - 1/16/2001


Quotesmith.com, Inc. Announces Receipt of Nasdaq Delisting Warning Notice; Considers One-For-Six Reverse Stock Split

 

DARIEN, Ill., Jan. 16 /PRNewswire/ -- Quotesmith.com, Inc., (Nasdaq: QUOT), announced today that it may call a special meeting of stockholders to vote on a one-for-six reverse stock split, if such a meeting becomes necessary in order to maintain Nasdaq's minimum bid price of $1.00. The Company's common stock has failed to maintain the minimum bid price for thirty consecutive trading days and is currently out of compliance with current Nasdaq listing requirements. Nasdaq has notified the Company that the Company's common stock must maintain a minimum bid price of $1.00 for ten consecutive trading days prior to March 13, 2001 in order to regain compliance with Nasdaq listing regulations.

"We intend to pursue a course of action which will maintain our Nasdaq National Market listing. We are executing our business plan on a slower growth trajectory with the goal of conserving capital, reducing operating losses and reaching profitability sooner rather than later. We finished the year with a strong capital base and no debt," commented Robert Bland, Chairman and founder of Quotesmith.com. Mr. Bland and William Thoms, also a founder of the Company, together own in excess of 50% of the Company's outstanding stock and have expressed their intention to vote for such a proposal if ultimately recommended by its board of directors.

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.

Forward Looking Statements

Except for historical information, the statements in this news release are forward-looking statements, involving substantial risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. Potential risks and uncertainties include, but are not limited to, the Company's limited operating history and need to generate revenues, the Company's need to preserve and possibly raise additional cash, the substantial competition in the insurance brokerage markets, possible liability related to content on or accessed through the Company's Web sites, the need to build a brand name quickly, the effect of substantial and changing government regulation, possible systems interruptions, a failure to integrate acquisitions or manage growth, and a failure to attract and retain key employees. Further information regarding these and other risks is included in the Quotesmith.com, Inc. Annual Report on the Form 10-K for the year ended December 31,1999, Quarterly Reports on Form 10-Q for the quarters ended March 31, 2000, June 30, 2000, and September 30, 2000, and other documents filed with the SEC. SOURCE Quotesmith.com, Inc.

CONTACT: David Vickers, CFO of Quotesmith.com, Inc., 630-515-0170, ext. 210, or email, dvickers@quotesmith.com/

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