Fortified Financial Position, Deep Global Presence and Expanded Development Initiatives Provide Increased Benefits for Customers and Strong Opportunities for Employees

SAN FRANCISCO (March 15, 2006) – Golden Gate Capital, a San Francisco based private equity firm, announced today that it has completed a strategic investment in Interstate National Dealer Services, Inc. (“Interstate”). This investment will provide additional resources for the continued expansion of the business, while preserving the superior levels of service customers have come to expect. Financial terms of the transaction were not disclosed.

Interstate, headquartered in Uniondale, NY, is a premier full service provider of service contracts and extended warranties for new and used motor vehicles. Interstate’s products have provided its customers with peace of mind in the event of a mechanical breakdown for 25 years. “Interstate has a sterling reputation in the industry and is very well positioned to take advantage of new opportunities in the market,” said Gene Becker, Operating Partner at Golden Gate Capital. “Interstate’s relationships with over 2,000 dealers across the United States and its award-winning web-based sales portal, WarrantyDirect, will serve as platforms for the company’s continued growth.”

“Golden Gate brings significant industry experience and expertise to Interstate. Gene Becker, who as CEO of American Bankers oversaw the impressive growth of its warranty business, is one example of the talented management Golden Gate brings to bear,” said Chester Luby, Interstate Chairman and CEO. “Golden Gate’s history of successfully investing in companies like ours gives us confidence that this investment will prove to be an exciting development for Interstate’s current and future customers and employees alike.”

Interstate’s proprietary STARAUTO and HiRoad products for new and used automobiles have been leaders in the industry for years. The company has also recently become one of the largest service contract providers for recreational vehicles in the nation, as well as a leading source of motorcycle, marine, and power sport service contracts.
“Interstate’s track record of product innovation and demonstrated ability to meet the needs of a changing marketplace validate the underlying strength of the company,” said Ken Diekroeger, Managing Director at Golden Gate Capital. “Our investment in Interstate ensures continued service excellence and provides the flexibility for Interstate to expand into new growth opportunities through additional product and channel development.”

About Golden Gate Capital

Golden Gate Capital is a San Francisco-based private equity investment firm with approximately $2.6 billion of capital under management. Golden Gate Capital is dedicated to partnering with world-class management teams to invest in change-intensive, growth businesses. Golden Gate targets investments in situations where there is a demonstrable opportunity to significantly enhance a company’s value. The principals of Golden Gate Capital have a long and successful history of investing with management partners across a wide range of industries and transaction types. For additional information, visit www.goldengatecap.com.

About Interstate National Dealer Services, Inc.

Founded in 1981, Interstate National Dealer Services, Inc. is a leading full service provider of service contracts and extended warranties for new and used motor vehicles. Products include service contracts and extended warranties for new and used automobiles, recreational vehicles, watercraft, motorcycles and sport vehicles. Interstate designs, markets and administers its products in 48 states and has issued more than 1 million service contacts and extended warranties since the company’s inception. For additional information, visit www.inds.com or www.warrantydirect.com