EXHIBIT 99.1

FOR IMMEDIATE RELEASE

                  Patrick J. Haveron, CPA
                  Executive Vice President - Chief Executive Officer
                  Preserver Group, Inc.
                  95 Route 17 South
                  Paramus, NJ 07653
                  201-291-2112
                  E-mail: phaveron@preserver.com


              PRESERVER GROUP ANNOUNCES ADDITIONAL DEVELOPMENTS IN
                    NEW JERSEY PRIVATE PASSENGER AUTOMOBILE

         PARAMUS, NEW JERSEY, July 18, 2001 - Preserver Group, Inc. (NASDAQ:
PRES) today reported that its Motor Club of America Insurance Company ("Motor
Club") unit had been granted certain relief by the New Jersey Department of
Banking and Insurance with regard to its private passenger automobile
operations, designed to improve Motor Club's deteriorating financial
condition. Motor Club's premium to surplus ratio no longer meets industry
standards, its share of urban enterprise zone ("UEZ") business (where it
writes double its required amount) is disproportionately high, and A.M. Best
recently downgraded the Motor Club unit. The relief includes the immediate
cessation of accepting new business in UEZ's, the non-renewal of a number of
UEZ risks and relief from assigned risk business.

         FORWARD-LOOKING STATEMENT DISCLAIMER. This press release contains
statements that are not historical facts and are considered "forward-looking
statements" (as defined in the Private Securities Litigation Reform Act of
1995), which can be identified by terms such as "believes", "expects", "may",
"will", "should", "anticipates", the negatives thereof, or by discussions of
strategy. Certain statements are forward-looking statements that involve risks,
uncertainties, opinions and predictions, and no assurance can be given that the
future results will be achieved since events or results may differ materially as
a result of risks facing the Company. These include, but are not limited to, the
cyclical nature of the property casualty insurance industry, the impact of
competition, product demand and pricing, claims development and the process of
estimating reserves, the level of the Company's retentions, catastrophe and
storm losses, legislative and regulatory developments, changes in the ratings
assigned to the Company by rating agencies, investment results, availability of
reinsurance, availability of dividends from our insurance company subsidiaries,
investing substantial amounts in our information systems and technology, the
ability of our reinsurers to pay reinsurance recoverables owed to us, our entry
into new markets, our acquisition of North East Insurance Company on



September 24, 1999, our acquisition of Mountain Valley Indemnity Company on
March 1, 2000, our successful integration of these acquisitions, potential
future tax liabilities related to an insolvent subsidiary and state regulatory
and legislative actions which can affect the profitability of certain lines of
business and impede our ability to charge adequate rates, and other risks
detailed from time to time in the Company's filings with the Securities and
Exchange Commission.