Erie Insurance Partners with BillMatrix to Provide Bill Payment Options
Customer Convenience is Primary Goal for New Payment Channel

Erie, PA and Dallas, TX – May 18, 2004 – Erie Insurance Group (NASDAQ: ERIE), a leading property/casualty insurer and BillMatrix Corporation, a provider of outsourced telephone- and Internet-based payment services, today announced the availability of automated telephone-based payments for the insurance firm’s policyholders. Erie Insurance Group is leveraging BillMatrix’ decade of external hosting experience to provide an interactive voice response (IVR) system that will provide ATM/debit and ACH/electronic check payment options on a 24/7 basis to the company’s policyholders.

“We differentiate ourselves by focusing on the customer’s experience in every interaction with our organization – including the payment of premiums,” said Jeffrey A Ludrof, Erie Insurance Group’s president and chief executive officer. “By offering an automated telephone channel and a wide range of payment methods, we are meeting our policyholder’s need for both convenience and control.”

The advantages of offering ATM/debit as a payment method go beyond customer convenience. BillMatrix has strong connections to the ATM networks, can validate that funds are available and set them aside for the premium payment. Erie Insurance Group benefits from faster cash flow, elimination of insufficient fund items (NSF’s) and reduced lapses in coverage. The ACH/electronic check option is backed up with BillMatrix’ sophisticated, multi-layered Enhanced Check Verification™ service to determine – in real-time – the anticipated status of each transaction. This minimizes the likelihood of NSF’s, while maximizing the number of good payments that flow through the labor- and cost-saving automated system.

Jerry Portocalis, BillMatrix’ senior vice president of sales and marketing, is pleased to add an industry leader to the insurance companies offering expanded payment options. “Erie is a model company in its dedication to customer service,” the executive said. “After the successful completion of an insurance industry ratification program with the ATM networks last year, we are dedicated to bringing this exciting option to policyholders across the nation through their carriers.”

About Erie Insurance Group
Known for competitive rates and superior service, Erie Insurance Group is a leading property/casualty insurer in the United States. With more than 3.7 million policies in force, Erie Insurance Group includes seven companies operating in 11 states and the District of Columbia and is rated A+ (superior) by A.M. Best Company. Erie Indemnity Company (Nasdaq: ERIE) is the management company for Erie Insurance Group. Headquartered in Erie, Pa., since 1925, The ERIE provides auto, home, business and life insurance through more than 7,300 independent agents representing 1,750 agencies. Erie Insurance Group ranks No. 368 among the FORTUNE 500 and is included in FORBES "Platinum 400" list of America's best-managed companies. For more information and a listing of independent agents representing The ERIE in your community, visit the company's Web site at www.erieinsurance.com.

About BillMatrix Corporation
BillMatrix Corporation provides outsourced payment services for the nation’s largest companies using the latest automated consumer interface technologies. Founded in 1994 and headquartered in Dallas, BillMatrix works with corporations in the telecommunications, utility, insurance, mortgage and financial services industries to replace expensive, paper-based methods of remittance with a set of convenient, labor- and cost-saving electronic transactions. Consumers are able to make payments in a private and secure manner, via the Internet and telephone, using a variety of credit card, ATM/debit card, and electronic check payment options. BillMatrix maintains a fully staffed customer service organization to support both its clients and their consumers with any payment issues. For more information, visit www.BillMatrix.com or call (800) 596-0221.