Release: Immediate

Contacts:
Susan Boyle / Jessica Riccardi
MWW Group (for ISO)
201-507-9500
This e-mail address is being protected from spam bots, you need JavaScript enabled to view it / This e-mail address is being protected from spam bots, you need JavaScript enabled to view it

Mike Gannon (AIR)
617-267-6645
This e-mail address is being protected from spam bots, you need JavaScript enabled to view it

The May 2–11 Outbreak of Severe Storms Could Result in the Largest Severe Thunderstorm InsuredLoss in History

AIR Worldwide Estimates Insured Losses Could Exceed $2.2 Billion

BOSTON, May 14, 2003 — AIR Worldwide Corporation, a leading catastrophe modeling company,estimates that losses from the recent outbreak of severe weather in the central United States couldexceed the $2.2 billion loss caused by a severe weather system April 6–12, 2001, making it thelargest insured loss for a severe thunderstorm system in history. AIR's estimate covers the periodfrom May 2 through May 11 and includes more than 18 states. The 72-hour period with the highest industryloss was May 4 to May 6, representing more than 50 percent of the total insured loss.

"This event is one for the record books in meteorological terms and very possibly in financialterms," said Uday Virkud, senior vice president at AIR. NOAA's Storm Prediction Center receivedmore than 400 reports of tornadoes before the pattern broke on May 11. There were approximately2,500 reports of straight-line winds and hail. This highly unusual weather system was caused by astationary weather pattern that started during the last week of April. It resulted in a jet-streampattern that persisted in the same position for nearly two weeks, resulting in a nearly continuousthreat of severe weather during that time. "The high financial losses from the system can be attributedto the duration of the weather system and the sheer number of individual tornadoes, hailstorms andstraight-line windstorms," Mr. Virkud concluded.

AIR derives its insured loss estimates by collecting data for each individual event within thelarger system, including tornadoes, hailstorms and straight-line windstorms. Once the data is collectedand analyzed, it is run through AIR's severe thunderstorm model. The model includes highly detailedproperty exposure information to capture the localized nature of severe thunderstorms. The engineeringcomponent of AIR's model determines property damage by calculating the impact of wind and hail onproperty. AIR dispatched a team of engineers to survey the damage.

About AIR Worldwide Corporation
AIR Worldwide Corporation is a leading catastrophe and weather risk modeling company. Throughits web-based and computer software solutions (ClimateCastSM, CLASIC/2TM,CATRADER®, CATMAP®/2, AIRProfiler®),AIR services the insurance, reinsurance and capital markets. AIR's models simulate losses from bothman-made and natural catastrophes in more than 35 countries. AIR is headquartered in Boston and hasadditional offices in North America, Europe and Asia. For more information, please visit the AIRwebsite at www.air-worldwide.com.

About ISO
ISO is a leading source of information, products and services related to property and liability risk.For a broad spectrum of commercial and personal lines of insurance, ISO provides analytical and decision-supportproducts; consulting; data processing; and technical, statistical and actuarial services. ISO's productshelp customers with sales and prospecting, underwriting, rating and quoting, customer management,policy administration, product development, claims administration and fraud detection. ISO's AIRWorldwide subsidiary provides customers with the most advanced technologies to assess and managenatural and man-made extreme-event risk. Through its ISO Claims Services, Inc. (iiX unit) and Intellicorpsubsidiaries, ISO provides motor vehicle reports and criminal-records information and through itsAscendantOne unit delivers policy-management and rating solutions. In the United States and aroundthe world, ISO serves insurers, reinsurers, agents, brokers, self-insureds, risk managers, insuranceregulators and other government agencies.