DCAP Group Reports Record Year-End Financial Results; Company Achieves Successful Turnaround with Net Income Of More Than $1 Million; Revenue Rises 44%.

Business Editors

HEWLETT, N.Y.--(BUSINESS WIRE)--March 13, 2003

DCAP Group, Inc. (OTCBB: DCAP), the largest chain of independent storefront insurance agencies in the Northeast, today announced that net income for the year ended December 31, 2002 was a record $1,046,007, or $0.09 per diluted share, compared to a net loss of $929,551, or ($0.08) per diluted share, in the same period a year ago.

Revenue for the year climbed 44% to $3,783,729 from $2,615,306 in 2001.

Year-end results include approximately four months of operations of the Barry Scott Companies, representing 20 storefront locations in New York. DCAP acquired Barry Scott from a subsidiary of The Progressive Corporation on August 30, 2002. In addition, fiscal 2002 includes the earnings from the operation and gain on the sale of its Puerto Rico hotel.

Barry Goldstein, chairman and chief executive officer of DCAP Group, said, "2002 was a watershed year for DCAP. After suffering through a string of losses over many years, DCAP has achieved record profits of more than $1 million in 2002 - quite a feat in a challenging economic period.

"Since my appointment as CEO in March 2001, we have implemented a strategic model to capitalize on the growing need for more flexible, competitive automobile insurance products and complement them with other proprietary products that provide value-added benefits for our customers. Our talented and dedicated employees, management team and franchisees all have worked incredibly hard to make this turnaround successful and our focus now is to build on this strong platform that we have created for future performance.