Re Franchisees

Claims Direct PLC
29 October 2001



           Claims Direct agrees attractive franchisee exit package


At the time of the Company's AGM on 19 September, it was reported that the
Company was in negotiation with its claims managers ('franchisees') in order
to reach an amicable solution to the problems of the Company's current
business model and the operation of its claims management franchises. It was
concluded that one of the keys to resolving the company's problems and
returning it to profitability was a negotiated settlement of these franchise
arrangements.


Following full consultation with the National Franchise Association and many
individuals and groups of franchisees, the Company has written to all its
franchisees outlining the details of three alternative exit packages offering
immediate and attractive cash payments in lieu of repayment of franchise fees
as well as settlement of each completed live claim.


The offers are now open for acceptance until the end of November, and in
addition all franchisees are being offered the opportunity to be considered as
an agent in the future once the Company's new business model is launched and
operating in early 2002.


It is anticipated that cash payments totalling up to £3.3m could become
payable under the settlement. The Company will benefit however from managing
those cases currently being managed by franchisees accepting the offer.


It is expected that the Company will announce its interim results for the six
months ended 30 September during the week commencing 19 November 2001, at
which time a full update will be provided on current trading, including case
run rates and the Company's financial position, and progress regarding
re-engineering the business model, the Claim Line acquisition, and the many
other issues affecting the business.


Commenting on the resolution to the franchisees issue, Ronnie Henderson, Chief
Executive of Claims Direct plc said:


'I am delighted that we have been able to offer an attractive exit package for
our franchisees, many of whom will have the opportunity to continue as
successful and highly regarded business partners once we launch our new
business model in 2002.


'The resolution of this issue is the first but perhaps the most important step
in the process of restoring both Claims Direct's image and its profitability.'



                                   - Ends -



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