Press Releases - April 11, 2008

AVEMCO® ANNOUNCES SUPPORT FOR GENERAL AVIATION PROGRAMS FAA WINGS Program, AERI Research and Build A Plane to Benefit

LAKELAND, FL (April 11, 2008)…

Several general aviation programs will benefit from contributions made by Avemco Insurance Company as announced today at the Sun n' Fun Fly-in in Lakeland, Florida. Avemco Insurance Company President Jim Lauerman outlined the company's general aviation community support effort that includes financial and in-kind resource support for the FAA's WINGS Program, the AERI Research Project, Build a Plane and the company's own Safety Rewards Program.

"It is Avemco's desire to help grow our industry while at the same time supporting efforts to improve safety. To that end, we are focusing our philanthropic and educational efforts on a few key programs. The organizations and projects we've chosen to support are actively engaged in the general aviation community and are already making significant contributions. We're excited to help them continue to grow," Lauerman said.

"We're going to concentrate on a continued commitment to safety through our Safety Rewards Program which recognizes our customers who take additional recurrent or proficiency training. I'm proud to announce that we've become a FAASTeam Industry Member and are now sponsoring the WINGS Pilot Proficiency Program by supplying all WINGS participants with WINGS lapel pins upon program completion," Lauerman said. As a FAASTeam Industry Member, Avemco is proud to support the on-going safety education programs provided by the FAA Program. Avemco also provides annual premium credits for their customers who complete WINGS as part of the Avemco Safety Rewards program.

Kevin Clover, National FAA Safety Team (FAASTeam) Manager said, "We are very happy to have Avemco's support in this important pilot education program. The WINGS Pilot Proficiency Program is a nationwide proficiency program available to all pilot levels. We have over 400,000 registered pilots who receive announcements about our safety programs. This partnership with Avemco will enable us to promote aviation safety and identify the three levels of WINGS participants who complete our safety training."

"In keeping with our safety education objective we continue our support of the Airmanship Education Research Initiative, led by Dr. Bill Rhodes. This year, the research is moving into an active testing phase. We are pleased to welcome Cirrus Design, Advanced Aviation Simulators, Inc., of Denver, and the University of Illinois, Urbana- Champaign in joining us to support this project." Lauerman announced.

As the founding sponsor, Avemco provides financial and research support to the AERI. AERI's multi-year research goal is aimed at studying the human causal factors associated with mishaps. The findings are expected to bring about significant improvement in the pilot-induced accident rate by introducing a new, empirically grounded approach to teaching airmanship based on precepts from the field of professional ethics. The AERI study will be detailing, by pilot in make and model, the characteristics and mental processes associated with pilot-induced accidents and comparing them to those demonstrated by expert airmen.

"There's nothing more important to general aviation than educating pilots to be safer pilots. Our support of AERI is a new and exciting part of Cirrus Design's training development future. AERI will help us discover human factors that separate the good pilots from those who need improvement. Go/no-go decision making and considerations along the way are about more than just equipment and technique – what pilots care about is also essential. We're hoping to help uncover those and then expand educational efforts to improve them through the AERI initiative," said Bill King Vice President of Business Administration for Cirrus Design.

Lauerman adds that the goal of this research project for Avemco is clearly a business one: determining characteristics and practices that are associated with accidents will help the company underwriting and pricing risks. The benefit for general aviation is a noble one: learning what mental processes to employ and/or avoid will make for better pilots and ultimately safer skies.

"Finally, the future of aviation is a real concern to all of us at Avemco. For the third year in a row we will renew our commitment to the Build A Plane organization with financial and in-kind contributions. Most recently we donated a salvaged Cessna 310 that Build A Plane placed with the aviation department at Greenville Technical College in Greenville, South Carolina" Lauerman continued.

After hurricanes Katrina and Wilma, Avemco worked with Build A Plane to transfer and transport over 20 totaled airplanes recovered from the storms' damage to schools that wanted restoration projects. These planes were Avemco policyholder aircraft that could never fly again due to saltwater damage but were deemed excellent educational projects. Recent donations include salvage resources and aircraft that are no longer able to fly but provide real airplanes for excellent hands-on training projects. The Greenville Technical College donation will be used for high school and college educational aviation maintenance courses.

Avemco donates thousands of dollars in marketing and promotional resources annually to Build A Plane. Avemco personnel volunteer their time and talents to the marketing, administrative and advisory aspects of the non-profit's endeavors.

Build A Plane began operations in 2003 as a non-profit organization dedicated to promoting aviation and aerospace careers by giving young people the opportunity to build real airplanes. The organization focuses on facilitating aircraft donations from owners to schools requesting airplane construction and restoration projects that help teach science, technology, engineering and mathematics.

Avemco Insurance Company, a leading pleasure and business general aviation insurer in the United States, has been insuring planes and pilots since 1961. Headquartered in Frederick, Maryland, Avemco is rated A+ (Superior) by A. M. Best Company and AA (Very Strong) by Standard & Poor's. Avemco is a subsidiary of HCC Insurance Holdings, Inc. (NYSE: HCC) a leading international specialty insurance group with assets of nearly $8.1 billion.