SEATTLE--(BUSINESS WIRE)--Aug. 24, 1999--

SAFECO (Nasdaq:SAFC) announced today that it will transition its current regionally based property/casualty call center operations into four national Contact Centers by year-end 2002.

The first Contact Center will be operational in July 2000.

The cities selected to house the new Contact Centers -- Denver, Indianapolis, Bothell, Wash., and Spokane, Wash. -- were chosen after an anonymous national search facilitated by Ernst & Young, Kenneth Levanthal. The finalist sites were narrowed down after an intensive review process and several visits by a team representing SAFECO administration, information systems, claims, human resources and corporate real estate. Economic development organizations in Denver, Indianapolis, Spokane and Seattle/King County also assisted with local research and site visits.

"Eventually, we found the best fits right in our own backyards," said David Wiley, vice president of administration for SAFECO Property/Casualty Companies, referring to the fact that SAFECO has P&C regional offices in Denver, Indianapolis, Redmond, Wash. (near Bothell), and Spokane. "We found that, in the final analysis, these cities brought advantages to our plan that couldn't be matched elsewhere."

While the Contact Centers will be stand-alone facilities separate from the regional offices in order to function as a national resource for the company's customers and agents, they will embrace the historic relationships the company enjoys with each of the communities. SAFECO has a long history in each city and is a well-established corporate partner known for stable employment, corporate contributions and organized volunteerism, education support, business advocacy and active community development.

At the heart of SAFECO's move to consolidate operations is its commitment to reengineering customer service from the inside out.

"Seamless, efficient customer service that takes advantage of technology is essential for companies to provide superior customer service in the 21st century," said Randy Stoddard, president of SAFECO Property/Casualty Insurance Companies. "People want `once and done' service, and we've taken this challenge very seriously, committing enormous resources to building a service foundation that will serve our customers and agents now and well into the future."

In addition to consolidating customer and agent service into four Contact Centers, which will eventually employ more than 900 people, SAFECO has built a single point of coordination managed from its Home Office in Seattle. This center facilitates the flow of call volume today, and helps to better schedule service representatives so they are there when customers call. SAFECO is also developing a new desktop design to manage workflow and facilitate easier access to customer information. These enhancements will be part of the state-of-the-art resources delivered to Contact Center representatives when the first facility opens in July 2000.

"We're taking a holistic approach to customer service," said Wiley. "It's all about what the customer needs and wants in a busy, competitive environment. We're building our centers and our infrastructure to support flexibility -- to provide customers and agents with choices about how they access SAFECO and how their needs are taken care of once they're in the system."

SAFECO's Contact Center strategy will offer significant advantages to customers and the independent agents who market SAFECO's products and services, including saving time and providing more efficient service.

"It's a given that we will have the best qualified, trained and skilled staff working in our Contact Centers, since quality people is what SAFECO is already known for," Wiley continued. "Now they'll be supported by technology and an organizational structure that maximizes their knowledge and skills. We'll continue to leverage that advantage as we change and develop service initiatives to meet future agent and customer needs."

SAFECO is focused on two groups of customers in its Contact Center initiative, according to Wiley. One is the independent agent who SAFECO partners with to provide consumers with the best in insurance and financial services products. The other customer is the consuming public -- the people who need insurance for their homes and cars, those interested in investing in life insurance, annuities or mutual funds for future prosperity, and the owners of small and large businesses who need a variety of insurance, business lending and investment and retirement services.

SAFECO, the premier company selling insurance and financial products through independent agents and financial professionals, was founded in 1923. Its operations include property casualty insurance, surety, business lending, life insurance, annuities and retirement services, mutual funds, asset management and investments, and financial services distribution operations. SAFECO employs more than 12,000 nationwide and is represented by 8,000 independent agencies and brokerages across the country. SAFECO's website address is www.safeco.com.