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FairBoss Acquires Cambridge Risk Reinsurance Intermediaries; Reports First Quarter Operating Results

MAPLEWOOD, NJ: June 14, 2002 - FairBoss Corporation CFO Mark Miller announced today that FairBoss Program Specialists unit has acquired Cambridge Risk Reinsurance Intermediaries, LLC ("Cambridge"), a reinsurance intermediary, and that first quarter operating results were ($0.52) - in line with plan.

Under the terms of the deal, Cambridge will act as the intermediary for FairBoss's Program Specialists division and Program Specialists will act as a holding company for the program brokerage and program management activities of the group. The consideration paid for the business was not disclosed. The operating results and attached balance sheet for the first quarter ending March 31, 2002 include the results of Cambridge consolidated as of February 21, 2002.

FairBoss Corporation provides (through its wholly owned subsidiary FairBoss Underwriters, Inc.) reinsurance and related reinsurance services specializing in Employment Practices Liability Insurance (EPLI). Through its wholly owned subsidiaries Program Specialists, LLC, and Cambridge Risk Intermediaries, LLC the Company assists insurance companies in the development and implementation of their Program Business.

The company intends to acquire operating insurance businesses through its 3 wholly owned merger subsidiaries.