New Business Model

Claims Direct PLC
21 February 2002

For immediate release      Thursday, 21st February2002

                               Claims Direct plc

                           NEW BUSINESS MODEL UPDATE

                         New agreement with Poole & Co



Introduction

As previously announced, Claims Direct plc ('Claims Direct' or 'the Company'),
the leading personal injury claims management specialist, is introducing a new
business model and accordingly is seeking to terminate or renegotiate a number
of existing agreements and schemes with certain of the Company's business
partners.

Agreement with Poole & Co

A pre-requisite to launching the new business model involves the termination of
existing arrangements with the partners of the solicitors firm Poole & Co, the
partners of which are Jake Bennett and Robert Andrews. Under those existing
arrangements Claims Direct is obliged to refer, on an exclusive basis, cases for
vetting and introduction. Poole & Co also exclusively established and
administered the panel of solicitors. The Company is pleased to announce that it
has today entered into a new agreement with Poole & Co terminating with
immediate effect those existing arrangements.


Under the terms of the agreement Claims Direct has agreed to extinguish all
debts and work-in-progress owed by Poole & Co up to 20 February 2002
(approximately £1.9 million) and Poole & Co has agreed to extinguish all debts
owed by Claims Direct up to 31 December 2001 (approximately £0.9 million). In
addition Claims Direct has agreed to purchase Poole & Co's interest in all of
Poole & Co's aborted cases, valued at £1.05 million as at 31 December 2001, in
respect of which moneys are due from insurers. Claims Direct has agreed to make
a maximum payment of £1.3 million for that interest to Poole & Co., payable in
seventeen monthly instalments commencing on 21 February 2002.


For a period of 5 years from the date of the agreement Claims Direct has agreed
to introduce to Poole & Co cases on a monthly basis as a member of their new
Solicitors' Panel. At the end of the 5 year term Poole & Co may elect either to
extend the agreement for a further final period of 2 years or receive a
termination payment of £500,000.


In the event that Claims Direct defaults on its obligations to make the payments
or introduce cases under the agreement Poole & Co may at its option terminate
the arrangements for the introduction of future cases, invoice the Company for
all work in progress, disbursements and VAT in respect of the ongoing cases
introduced to it and require the Company to pay liquidated damages of a maximum
of £360,000.


Commenting on the new business model update, Ronnie Henderson, Chief Executive
of Claims Direct plc, said:


'Making these changes is imperative as it not only helps us become more
efficient as we seek to restore the financial health of Claims Direct, but also
represents important progress in the launch of our new business model.
Accordingly, we will continue to announce changes and new developments as we
conclude agreements with our business partners.


'The recent acquisition of Claimline and the pending launch of the new business
model are beginning to provide a platform from which we can re-establish Claims
Direct and restore its reputation.'


                                    - Ends -

For further information please contact:

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

Weber Shandwick Square Mile                                 0207 950 2800
Reg Hoare/Christian Taylor-Wilkinson/Claudine Cartwright




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