DOXSEE & Associates P.O. Box 7687  -  Thousand Oaks, CA 91359-7687 - PH: 800-759-8378 - FAX: 805-495-4130                                     DEJA VU   AD-COMP APPROVES ANOTHER RATE REDUCTION We are extremely pleased to announce the Board of Trustees for AD-COMP  today approved a new actuarial study reducing rates an average  13.72% for all members effective July 1, 2006  -   retroactive to January 1, 2006.   Invoices for the third quarter will be mailed shortly, and will adjust the amount due resulting from the rate reduction.  The percentage reduction will vary slightly from member to member based on the each member’s division of payroll among the four class codes.    This is the fourth consecutive six-month reduction, further validating the Board’s pledge that   “once the savings from the reform legislation and loss control can be calculated, the Board will revisit further rate reductions”.  This is just further proof that, while AD-COMP is an extremely conservative program with rates developed at an 80% confidence level, every dollar saved through whatever means is returned to the members as soon as possible. Since January 1, 2005, rates, in concert with new class code 8742, have reduced over 60% and over $9.6 million equity has been distributed back to members.   We sincerely appreciate the privilege of marketing AD-COMP and representing you and your fellow dealer members.  We have always said AD-COMP is the “answer to those qualified dealers who control their claims and want to reduce their workers’ comp costs – short term and long term”.  This great news has certainly validated that premise.           AD-COMP REMAINS “ THE ANSWER” 6/21/06