DCAP Dcap Grp. (MM)

DCAP Group, Inc. (NASDAQ: DCAP), the largest chain of independent storefront insurance agencies in the Northeast, today reported a net loss for the second quarter of 2008 of $111,980 (or ($0.04) per diluted share) as compared to net income of $135,260 in 2007 (or $.04 per diluted share). Net loss from continuing operations was $21,138 in 2008 as compared to a net income from continuing operations of $40,088 in 2007. Year to date net loss was $341,638 (or ($0.11) per diluted share) and year to date net loss from continuing operations was $130,686 (or ($0.04) per diluted share). Loss from discontinued operations, net of tax, was $210,952, year to date in 2008, down from income of $133,037 in 2007. Management�s Commentary �Our efforts to reduce and rationalize expenses to achieve higher efficiency at lower volumes have been successful. More work remains, but the installation of our new agency management system and the aggressive efforts of our agency staff, have allowed us to reduce non-revenue generating headcount,� said Barry Goldstein, DCAP Chairman and CEO. Victor Brodsky, DCAP Chief Accounting Officer added �We continue to examine the individual store profitability measures with an eye to selling and/or closing those which do not adequately contribute to the Company as it exists today, and to those which do not strategically fit in with the Company�s future plans.� The process for the demutualization of Commercial Mutual Insurance Company continues. The Company is hopeful that the conclusion will occur during 2008, but no assurances can be given. The carrying amount of the Notes Receivable continues to increase as interest is accrued as per the terms of the notes. No interest payments have been received since Q1 2007. If the conversion is successful, DCAP has agreed to forego the amounts due, in exchange for the stock of the newly named �Kingstone Insurance Company.� Financial Results � � � � Quarter ended June 30, � 2008 � 2007 � Commissions and fees 1,306,868 1,513,620 (Loss) Income from continuing operations - net of tax (21,138 ) 40,088 (Loss) Income from discontinued operations - net�of tax (90,842 ) 95,172 Net (Loss) Income (111,980 ) 135,260 � Diluted Per Share Information: (Loss) Income from continuing operations (0.01 ) 0.01 (Loss) Income from discontinued operations (0.03 ) 0.03 (Loss) Income per common share (0.04 ) 0.04 � Weighted Average Diluted Shares Outstanding 2,977,108 3,284,523 � � Six months ended June 30, 2008 2007 � Commissions and fees 2,623,559 3,126,859 (Loss) Income from continuing operations - net of�tax (130,686 ) 91,017 (Loss) Income from discontinued operations - net�of tax (210,952 ) 133,037 Net (Loss) Income (341,638 ) 224,054 � Diluted Per Share Information: (Loss) Income from continuing operations (0.04 ) 0.02 (Loss) Income from discontinued operations (0.07 ) 0.05 (Loss) Income per common share (0.11 ) 0.07 � Weighted Average Diluted Shares Outstanding 2,973,066 3,284,096 About DCAP Group DCAP Group, Inc. owns and operates the largest chain of independent storefront insurance agencies in the Northeast. Through DCAP Insurance, Barry Scott Insurance, Atlantic Insurance Agency and Accurate Agency, DCAP Group provides automobile insurance (and to a lesser extent, motorcycle and homeowners), enhanced by complimentary premium financing capabilities, to retail customers in New York and Pennsylvania. Other products include automobile club service for roadside emergencies and income tax preparation services. As of August 14, 2008, there were 66 owned or franchised storefront locations. Forward Looking Statements Statements in this press release may contain �forward-looking statements� within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, may be forward-looking statements. These statements are based on management�s current expectations and are subject to uncertainty and changes in circumstances. These statements involve risks and uncertainties that could cause actual results to differ materially from those included in forward-looking statements due to a variety of factors. More information about these factors can be found in DCAP�s latest Annual Report filed with Securities and Exchange Commission under Form 10-KSB. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.