Offer Rejection

Claims Direct PLC
23 July 2001

                                             
 NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO
THE UNITED STATES, CANADA, AUSTRALIA, REPUBLIC OF IRELAND
                        OR JAPAN



               Offer for Claims Direct plc

Response from Independent Directors - Rejecting the Offer

David  Hankinson,  David Hickey,  Paul  Doona  and  David
Gravell, the Independent Directors of Claims Direct  plc,
are writing to Shareholders today advising them to reject
the Offer made by Barker Securities Limited.

The  text  of  their letter to Shareholders  is  set  out
below:

'Dear Shareholder,

David  Hickey and I have written to you twice  in  recent
weeks to give you information and advice as this takeover
bid progresses. I am writing to you now, on behalf of the
Independent Directors, to give you our formal response to
the  Offer made on behalf of Barker Securities, the  full
details of which you should have received by now.

I am delighted to inform Shareholders that, since we last
wrote, both Paul Doona and David Gravell have decided  to
join with David Hickey and me as Independent Directors in
rejecting the bid.

Advice
Our  strong advice to you is that you should reject  this
bid,  as  we  will  be  doing  in  respect  of  our   own
shareholdings. If you wish to reject this bid, no  action
is required on your part.

Reasons for Rejection
We  believe that the Offer, at 10 pence per share,  is  a
deeply  cynical attempt by Messrs Sullman  and  Poole  to
take  advantage  of uncertainties facing the  Company  at
this  particular  time. The Offer  by  Barker  Securities
raises wider issues than the simple question of how  much
Messrs Sullman and Poole should pay for the 57 per  cent.
of  the  Company  they do not already  own.  We  seek  to
address these issues in this document. Whilst this  Offer
would  probably benefit Messrs Sullman and Poole,  we  do
not  believe that it is in the interests of the Company's
shareholders as a whole.

As  we said in our last letter, the price of 10 pence per
share  is substantially below the closing share price  of
16  pence  on 20 June 2001, the date when Messrs  Sullman
and  Poole  were  granted permission  by  your  Board  to
investigate the feasibility of making an offer. The offer
of 10 pence per share is, in our opinion, unacceptable.

Barker  Securities  only requires a few  Shareholders  to
accept  the  Offer or sell shares to it to enable  it  to
reach  the all important 50.1 per cent. ownership of  the
Company,  thereby giving Messrs Sullman and  Poole  legal
control  of  the Company and the ability to  de-list  the
Company's  shares.  This could significantly  reduce  the
liquidity  and  marketability  of  your  shares  and  the
regulatory protections you currently enjoy.

The  directors  of  Barker  Securities  have  said  that,
following  the  de-listing, they intend  to  undertake  a
major   re-positioning  of  the  Group's  operations   by
reducing  its cost base significantly and by accepting  a
much  lower level of cases each month. Any downsizing  of
the   business   would   have  clear   implications   for
franchisees, employees and panel solicitors.

Factors Affecting the Business
To  help Shareholders make their decision on this bid, we
have set out below our views on various factors affecting
the business:

Recoverability of insurance premiums
One  of the biggest uncertainties facing the Company, and
indeed the claims management industry in general, is  the
extent to which 'after-the-event' insurance premiums will
be  recoverable  on behalf of claimants.  This  is  being
addressed by the Court of Appeal at the present time  and
a  final  decision is expected at the end of this  month.
The specific judgments in the case so far are on balance,
we  believe,  helpful,  but this is  such  a  significant
factor  in  determining  the  future  viability  of   the
business and its competitive environment that we will  be
communicating  with you again once the final  outcome  is
known.

Brand recognition
Claims Direct is one of the most high profile players  in
the  UK  claims management industry and has an  extremely
high  level of brand recognition. We, therefore, want  to
build  on  the  strength  of the  brand  recognition  and
restore  confidence in its value, in contrast,  it  would
appear, to the intentions of Messrs Sullman and Poole.

Media perception
The  issues that the media highlighted in the  Autumn  of
2000  were  issues  of genuine concern to  Claims  Direct
customers,  and the Company acknowledges that these  were
poorly handled. However, steps have been and continue  to
be  taken both to improve customer service and to address
the negative PR that has beset the Company.

Case volumes
You  should  by  now have received the  Company's  annual
report and accounts for the year ended 31 March 2001.  As
reported  therein,  the  number  of  accepted  cases  has
continued to decline since 31 March 2001, and it is still
not  possible  to ascertain at what level the  number  of
accepted cases will stabilise.

However,  for the first time in a number of months  there
are  some  encouraging signs. The key measures of  weekly
activity  -  gross  calls  into  the  call  centre,   new
enquiries, new appointments and new submissions to  panel
solicitors  - have shown an upward trend from  early  May
and  should  result  in an increased  level  of  accepted
cases.

The  number of responses obtained from a given  level  of
marketing expenditure has increased during the  last  two
months  and  there is genuine hope that this  improvement
will  continue.  Further,  as  part  of  a  programme  of
significant  remedial  action,  the  management  team  is
reviewing all areas of operations with the aim of further
aligning  the operational base and overhead structure  to
achievable volumes of business.

Motivation
One  of  the  key  factors affecting the  future  of  the
business is the motivation of the management and staff of
Claims Direct. We have been hugely impressed by the sense
of  drive  and  determination displayed by the  Company's
staff in recent weeks. Under the leadership of Paul Doona
and David Gravell, we see a renewed sense of dynamism and
belief  in  the future of the business as an  independent
publicly quoted company.

Approaches
In our last letter, we indicated that a number of parties
had  approached  us with regard to some  form  of  future
involvement  with  Claims Direct.  There  are  continuing
discussions but these remain at an early stage and may or
may  not  lead  to any firm proposal within  the  current
offer timetable or at all.

The Future
If  the  bid  fails, we would look to Messrs Sullman  and
Poole to resign from the Board of the Company as a matter
of honour.

We  intend to review the structure and composition of the
Board and make additional appointments if necessary.

Furthermore, we would want to explore with Messrs Sullman
and  Poole ways of reducing or disposing of their 43  per
cent. combined shareholding so that the business can then
move ahead without this overhanging issue.

We  will  work  hard to find an early resolution  of  the
disputes between the Company and some of its franchisees.

Recommendation
The future viability of Claims Direct depends heavily  on
the  way  in  which the many uncertainties affecting  the
business are resolved.

Given  the  timing  of  a number of these  uncertainties,
notably  the  Court  of Appeal case, the  bid  by  Messrs
Sullman and Poole is clearly opportunistic.

You, as a Shareholder, have a choice:

  *  to  accept 10 pence per share in cash which is  a
     certain offer in an uncertain environment; or

  *  to  reject the Offer, recognising that,  although
     there are uncertain factors affecting the business, 
     there is the potential for long-term growth.

It  is  this  latter  course that we intend  to  take  in
respect  of our own shareholdings and, therefore,  having
been so advised by Investec Henderson Crosthwaite, we are
recommending that Shareholders reject the bid  by  taking
no action.

We  have  been delighted to have received so  many  views
from  Shareholders, franchisees and others and would like
to  thank everyone who has taken the trouble to write  to
us.

We  cannot  give you any guarantees but we are completely
satisfied that, given the chance, the Executive Directors
and  staff of Claims Direct will spare no effort in their
endeavours to rebuild the business.

Only  you  can  give them this chance - by rejecting  the
bid.

Yours sincerely

David Hankinson
Independent Director'



The  Independent  Directors  of  Claims  Direct  plc  are
responsible  for  the  information  contained   in   this
announcement. To the best of the knowledge and belief  of
the  Independent Directors of Claims Direct plc (who have
taken  all  reasonable care to ensure that  such  is  the
case), the information contained in this announcement  is
in  accordance with the facts and does not omit  anything
likely to affect the import of such information.

Press Enquiries

Claims Direct plc
David Hankinson                      [phone]
David Hickey                         [phone]

Investec Henderson Crosthwaite
(a division of Investec Bank (UK) Limited)
Jagjit Mundi                         [phone]
David Currie                         [phone]

Golin/Harris Ludgate
Reg Hoare                            [phone]

Investec  Henderson Crosthwaite, a division  of  Investec
Bank  (UK)  Limited,  which is regulated  in  the  United
Kingdom  by The Securities and Futures Authority Limited,
is  acting  for  Claims Direct plc  and  no-one  else  in
connection with the Offer and will not be responsible  to
anyone  other  than Claims Direct plc for  providing  the
protections  afforded to customers of Investec  Henderson
Crosthwaite, or for providing advice to any other  person
in relation to the Offer.