AGM Statement

Claims Direct PLC
19 September 2001


                    Claims Direct plc
                     ('The Company')
                            
                      AGM Statement

At the Company's AGM held today, the new Chief Executive,
Ronnie   Henderson,   made  the  following   remarks   to
shareholders:

'I  find myself in an unusual, if not a unique situation.
Claims  Direct  was listed on the London  Stock  Exchange
just 14 months ago and in that short period, its business
model  has collapsed and in its year to 31 March 2001,  a
profit expectation of £20 million has turned to a loss of
£20 million. This has led to:

  * The collapse of the share price
  * The  removal or resignation of all directors on  the
    board at the time of flotation
  * Information gathering by the Department of Trade and
    Industry
  * and a change in the control of the business.

In  addition, the Company is in contested litigation with
a number of its franchisees.

The  Company is still loss making and although losses had
been  falling in June and July they increased in  August,
primarily as a result of the costs of litigation and  the
defence of the bid from Barker Securities.

Nevertheless, the tireless efforts of the management  and
staff  have  led to a rise in new business  in  July  and
August,   although  we  are  still  some  way  short   of
breakeven, which is estimated to be around 2300  accepted
cases per month. June totalled 1100 accepted cases, July,
1600 and August, 2000, respectively.

As  you  will  be aware, the Company was visited  earlier
this year by representatives of the DTI.  The Company co-
operated  fully  and  provided all necessary  answers  to
their enquiries.

Therefore, it is clear that Claims Direct has a number of
challenges which it must address immediately:

  1.   To return the company to profitability
  2.   To repair its reputation with its customers, its
       business partners, City institutions and the media.
  3.   To re-establish working relationships with our
       franchisees and end the litigious situation which
       presently exists.

Of  all of these issues, it is the latter which I believe
is the one which needs to be most urgently addressed.


Franchisees

When we come to a resolution of our franchisee
arrangements, I believe that all other matters will  fall
into   place.   There are only 2 solutions to our
franchisees' problems:

  *  We agree a new contract to the  benefit  of  both
  parties.  I shall, after discussions with franchisees,
  be preparing new terms before the intended new business
  model  is  introduced.  In the meantime, I  urge  those
  franchisees  who  have not yet accepted  the  temporary
  arrangements to do so without delay in order  that  the
  Company can concentrate on revitalising the business.

  *  Earlier this year, franchisees were offered an  exit
  package  which  was  open until 20th  March.   Some  90
  franchisees took advantage of this offer and exited the
  business. I sincerely hope that we can agree new  terms
  with all concerned but if we cannot, then we shall look
  at  new  proposals  to allow franchisees  to  terminate
  their agreements ahead of schedule.

Litigation  by  its  very  nature  is  both  costly   and
confrontational  and  is not conducive  to  a  negotiated
settlement,  so every effort is being made to  ensure  we
return  as  quickly as possible to a harmonious  business
partnership.  I  believe that when  our  differences  are
resolved, we can go a long way to improving our image and
return the Company to profitability.

Callery vs Gray

In  July 2001, the Court of Appeal gave Judgment  on  the
issues in the case of Callery v Gray.  Although this  was
not  a  Claims  Direct  case,  we  accepted  the  Court's
invitation to any interested party to give evidence.

There were three Judgements handed down and although  the
Court did not go as far as we would have liked, in giving
certainty  to  the  industry,  there  were  a  number  of
positive issues decided in favour of the After The  Event
insurance  industry, of which Claims Direct is a  leading
member.

As  a result of this, we are continuing with our own test
cases  which are due to be heard by the Court  of  Appeal
during early October.

Future of Claims Direct's business model

It  was  made clear in the Callery vs Gray Judgment  that
our  business  model would have to change going  forward.
The way Claims Managers are remunerated and the issue  of
ring  fencing particularly affected Claims  Direct.   The
indicators  are  that in order to regain our  competitive
edge  in  the market, we will require a range of products
and  not just the universal product that we have marketed
in the past.

Future of The After the Event Industry

The  Court  of  Appeal  did however  provide  encouraging
signals  that  the  Defendant  Insurance  industry   must
recognise   that  after  the  event  policies   are   the
replacement  for  Legal  Aid,  as  was  intended  by  the
Government when it introduced the Access to Justice Act.

However,  we recognise that the industry must demonstrate
that After The Event policies are the most cost effective
method of funding personal injury and non-personal injury
claims.  Given that the Government will not  reverse  its
policy and reinstate Legal Aid, Claims Direct must strive
to  be  the  complete solution provider in the After  The
Event market.

The Future

It  has  been  reported that we are in  discussions  with
Claim  Line regarding the acquisition of their  business.
Should  this  be concluded, it will give  the  Company  a
choice  of  two  brands  and two business  models.  Early
indications  are  positive and due  diligence  should  be
concluded in a few weeks.

Naturally  we  shall be announcing new board appointments
when suitable candidates are identified.

In  the  meantime we are making renewed efforts to return
the  business  to  profitability  as  soon  as  possible,
building on the work undertaken by the management team in
the  last  six  months.  I look forward to  reporting  to
shareholders on the progress we are making at the time of
the  Company's interim results for the six months  to  30
September 2001, which are expected to be released in late
November.'

For further information, please contact:

Claims Direct plc                            01952 284800
Ronnie Henderson, Chief Executive    www.claimsdirect.com

Golin/Harris Ludgate                        0207 324 8888
Reg Hoare/Trish Featherstone