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Contacts:

David M. Howard
President and CEO
Christopher P. Breakiron
Chief Financial Officer
Insurance Management Solutions Group
(877) 711-4674


                      INSURANCE MANAGEMENT SOLUTIONS GROUP
                        ANNOUNCES COST-CUTTING MEASURES



         ST. PETERSBURG, Florida, February 14, 2001 - Insurance Management
Solutions Group, Inc. (Nasdaq: INMG), a provider of business process
outsourcing ("BPO") solutions serving insurance companies and financial
institutions, today announced that it has cut 53 jobs, constituting
approximately 10% of its total workforce. The reductions will represent savings
of approximately $1.7 million in annual payroll and should have an immediate
positive impact on the Company's cash flow. The reductions, which involved
primarily information technology and claims administration, occurred in areas
where processes could be combined to reduce overall expenses. The Company also
announced that it is exploring various other measures for reducing costs,
including further reducing its sales and marketing expenses and re-evaluating
its total space requirements in order to reduce total rent expenses.

         The reductions in personnel and other cost-cutting measures, coupled
with a much narrower focus of its business process outsourcing service
offerings for the foreseeable future, are intended to enable the Company to
focus on profitability. By leveraging its existing structure in policy and
claims administration and by instituting greater control of time and costs
related to IT development, the Company will be able to bring new clients on
more rapidly.

         David M. Howard, President and Chief Executive Officer of Insurance
Management Solutions Group, Inc. ("IMSG"), commented, " we plan to continue to
look at our cost structure in all areas to determine where automation can play
a larger role in creating efficiencies that ultimately reduce operating costs."

         Insurance Management Solutions Group, Inc., (www.outsourceimsg.com),
including its subsidiaries, is a provider of business process outsourcing
solutions serving insurance companies and financial institutions nationwide.
The Company offers a complete menu of policy and claims administration services
as well as financial and statistical reporting, flood hazard determinations,
training, and marketing support.



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Certain statements contained in this press release, including statements
regarding the impact of certain cost-cutting measures on the Company's cash
flow and profitability and the Company's ability to further reduce expenses,
and other statements contained herein regarding matters that are not historical
facts, are "forward-looking" statements (as such term is defined in the Private
Securities Litigation Reform Act of 1995). Because such statements are subject
to risks and uncertainties, actual results may differ materially from those
expressed or implied by such forward-looking statements. Factors that could
cause actual results to differ materially from those expressed or implied by
such forward-looking statements include, but are not limited to, uncertainties
regarding the market, acceptance of the Company's new service offerings,
difficulties in developing new technological solutions for current and
prospective customers, difficulties in obtaining new customers and retaining
existing customers, difficulties in achieving expected expense reductions as a
result of management initiatives, and those risks and uncertainties discussed
in filings made by the Company with the Securities and Exchange Commission,
including those risks and uncertainties contained under the heading "Item 1
Business Risk Factors" in the Company's Annual Report on Form 10-K, for the
year ended December 31, 1999, as filed with the Securities and Exchange
Commission.


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