"Quotesmith.com delivered an outstanding quarter of progress and momentum," said Robert Bland, Chairman and CEO. "We slashed our net loss, grew revenues, and made solid progress with our new customer revenue and acquisition cost economics."

For the second quarter, Quotesmith.com reported 6,343 policies sold, representing an increase of 19 percent from the 5,314 policies sold in the second quarter of 2001. Policies sold for the first six months of 2002 amounted to 11,399, down two percent from the 11,633 paid policies reported in the same period of 2001.

Quotesmith.com said it revised its 2002 financial forecast, announced Dec. 7, 2001, and reaffirmed on Jan. 23, 2002. The Company previously anticipated 2002 revenues of $10 to $11 million, a net loss of less than $1 million, and year-end cash investment balances of $17 to $18 million.

The Company said it is looking for 2002 revenues of $10 to $11 million, a net loss of $1.5 to $2 million, and year-end cash and investment balances of $14 to $15 million. The increase in projected net loss is due to higher levels of planned technology spending and other operations costs.

Quotesmith.com believes its current capital structure, including cash and short-term investments of $16.4 million, is adequate to reach profitability without the necessity of additional debt or equity financing.