Press

Press Releases 2001

Pethealth and Kingsway enter into Interim Services Agreement for the Distribution of Pet Insurance in the United States

OAKVILLE, ON, March 29, 2001.

CNW/ - PETHEALTH INC. (CDNX: PTZ) and Kingsway Financial Services Inc. (TSE: KFS) today announced that they had entered into an agreement whereby Avalon Risk Management Inc., a wholly-owned subsidiary of Kingsway, will act as a distribution platform for Pethealth's pet insurance products in the United States on an interim basis, pending registration by Pethealth in the United States. Pethealth intends to commence offering its accident and illness insurance products for dogs and cats in the United States beginning in May, 2001. Earlier this year Pethealth announced that it had entered into an agreement with Kingsway to have it underwrite its pet insurance products in the United States through its wholly owned subsidiary, Lincoln General Insurance Company. Lincoln is rated "A-" Excellent by A.M. Best.

"I am delighted to announce our partnership with Avalon," said Mark Warren, President and Chief Executive Officer of Pethealth Inc. "The agreement will provide us with the necessary vehicle with which to initiate the distribution of our pet insurance products in the United States".

Lincoln has now filed the Pethealth pet insurance programme in 39 states and has received approval in 27 including New York, California, Florida, Pennsylvania, Michigan and Ohio. Further approvals are expected prior to the launch in May.

"I am pleased with this further alliance with Pethealth", said Bill Star, President and Chief Executive Officer of Kingsway. "We see strong growth potential in the niche pet insurance market in the U.S. and believe that Pethealth is well positioned to take advantage of this opportunity. Our multi-state licences, together with distribution channels that Pethealth has established, should ensure good distribution of the insurance products."

About Kingsway

Kingsway's primary business is the insuring of automobile risks for drivers who do not meet the criteria for coverage by standard automobile insurers. The Company currently operates through nine wholly owned subsidiaries in Canada and the U.S. Canadian subsidiaries include Kingsway General Insurance Company, York Fire & Casualty Insurance Company and Jevco Insurance Company. U.S. subsidiaries include Universal Casualty Company, American Service Insurance Company, Southern United Fire Insurance Company, Walshire Assurance Company, Hamilton Investments, Inc. and Avalon Risk Management, Inc. The Company also operates reinsurance subsidiaries in Barbados and Bermuda. Kingsway Financial, Kingsway General, York Fire, Jevco and Kingsway Reinsurance (Bermuda) are all rated "A" Excellent by A.M. Best. The Company's senior debt is rated 'BBB-' (investment grade) by Standard and Poor's. The common shares of Kingsway are listed on the Toronto Stock Exchange, under the trading symbol "KFS".

About Pethealth

Pethealth was founded in February 1998 and is based in Oakville, Ontario. Institutional investors include the VC Advantage Fund and Dynamic Mutual Funds, through its Dynamic Venture Opportunities Fund.

Pethealth, through its subsidiary PetCare Insurance Brokers Ltd., currently offers pet insurance products to owners of dogs and cats in Canada. PetCare products in Canada are underwritten by ING Wellington, a member of the ING Group, and CGU Elite Insurance Company, a member of CGU Group Canada Ltd. PetCare has the endorsement of a number of industry leaders, including veterinary medial associations representing approximately four out of five practising veterinarians in Canada.

The Canadian Venture Exchange Inc. has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Not for dissemination in the United States of America or to United States news wire services.

For further information: Pethealth Inc.: Glen Tennison, Chief Financial Officer, (905) 842-2615, (905) 842-3522 (FAX), www.petcareinsurance.com or Kingsway Financial Services Inc.: Shaun Jackson, Executive Vice President and Chief Financial Officer, (905) 629-7888, (905) 629-5008 (Fax), www.kingsway-financial.com.

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