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.