DCAP Dcap Grp. (MM)

DCAP Group, Inc. (NASDAQ: DCAP), the largest chain of independent storefront insurance agencies in the Northeast, today reported financial results for the second quarter of 2007. Total revenues were $2,364,793, a decline from the prior year amount of $3,032,240. Net income was $135,260, down from $280,814 as reported for the second quarter of 2006. Earnings per diluted share were $0.04 as compared to $0.09 in the second quarter of 2006. Operating Highlights 2Q 07 � 2Q 06 Commissions and Fees $1,513,620 � $1,860,052 Premium Finance Revenue 851,173 � 1,172,188 Total Revenues 2,364,793 � 3,032,240 Pretax Income 245,927 � 468,139 Net Income 135,260 � 280,814 � � � Basic EPS 0.05 � 0.10 Diluted EPS 0.04 � 0.09 � � � Basic Shares 2,967,442 � 2,896,024 Diluted Shares 3,284,523 � 3,248,668 Commentary Barry Goldstein, CEO of DCAP, stated �Little has changed in the past three months. We are in the throws of a soft market, in which the ease of securing coverage is coupled with stable or reduced rates. While there is little to compel consumers to shop, those that do are more frequently starting at the Internet. This puts the typical storefront agency in unfamiliar territory, low quote levels and low conversion. For those consumers who are making the buy decision strictly on price, we are often at a disadvantage, as the direct writers enjoy an accounting advantage over the agency-based companies. This has led to a continued decline in our revenues.� �DCAP is making changes to its advertising and marketing programs to better generate Internet leads and has built its own lead management software program to assist its producers,� Mr. Goldstein continued. �With a customized comparative rating system, we offer on-line shoppers a choice in coverages and carriers with near real time response rates. Over time, we hope to increase our conversion rate to a level that will economically justify the investments we have made.� About DCAP Group DCAP Group, Inc. owns and operates the largest chain of independent storefront insurance agencies in the Northeast. Through DCAP Insurance, Barry Scott Insurance, Atlantic Insurance Agency and Accurate Agency, DCAP Group provides automobile insurance (and to a lesser extent, motorcycle and homeowners), enhanced by complimentary premium financing capabilities, to retail customers in New York and Pennsylvania. Other products include automobile club service for roadside emergencies and income tax preparation services. As of August 13, 2007, DCAP had 71 owned or franchised storefront locations. Forward Looking Statements Statements in this press release may contain �forward-looking statements� within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, may be forward-looking statements. These statements are based on management�s current expectations and are subject to uncertainty and changes in circumstances. These statements involve risks and uncertainties that could cause actual results to differ materially from those included in forward-looking statements due to a variety of factors. More information about these factors can be found in DCAP�s latest Annual Report filed with Securities and Exchange Commission under Form 10-KSB. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.