AEF Announces Collaboration With Applied Insurance Research

Narragansett, RI, July 26, 2001 - AEF has announced a collaboration with Applied Insurance Research (AIR) that combines AIR's industry leading damage estimation model with AEF's state-of-the-art hurricane hazard forecast technology.

The integration of AEF's Numerical Weather Prediction (NWP) hurricane forecast technology with AIR's detailed damage estimation technology provides clients with access to real-time hurricane loss estimates based on actual forecasts of hurricane tracks and intensity. Nowhere else is this kind of information commercially available. Loss estimates will become available 3 to 5 days in advance of hurricane landfall.

"The combination of AIR's insured loss estimation technology and our tropical cyclone forecast system gives our clients access to the best possible hurricane damage estimates," said Lew Rothstein, AEF President. "These are the first hurricane damage estimates based on the more realistic and accurate storm simulations provided by NWP technology," added Isaac Ginis, AEF Chairman.

AIR provides catastrophe modeling services and software solutions to the insurance, reinsurance and capital markets. AIR's models simulate losses from natural catastrophes such as hurricanes, hail, tornadoes, straight-line windstorms, flood and earthquakes. AEF is the technological leader in the provision of NWP based hurricane forecast products.

AEF's Tropical Cyclone Prediction System provides accurate forecasts of hurricane winds and rainfall with lead times of up to five days. Forecast data is provided through interactive, web-based visualization software that allows rapid and effective navigation through a variety of forecast products including geographical maps of surface winds and precipitation, and probabilistic estimates of storm tracks. AEF's web address is http://www.accufore.com.