NORTH EAST TO RECONVENE SHAREHOLDER MEETING ON MERGER VOTE


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     SCARBOROUGH,  Maine, July 13, 1999 -- North East Insurance Company (Nasdaq:
NEIC) today announced that it has adjourned its July 12 shareholder  meeting for
lack of a quorum.  The meeting will reconvene on Tuesday,  July 20, 1999 at 4:00
p.m. The meeting was called to seek approval of a proposed merger agreement with
Motor Club of America (Nasdaq:MOTR).

     "As previously announced," said Robert G. Schatz, Chairman and CEO of North
East, "we have a very high quorum  requirement for a transaction of this nature.
The proposed merger requires the affirmative  vote of holders of at least 75% of
the  outstanding  shares  of  North  East  common  stock.  To  date  not  enough
shareholders have voted on the transaction. We adjourned the meeting for another
eight days to allow our shareholders additional time to submit their proxies."

     Schatz continued,  "Of the shares voted so far, a very large percentage are
in favor of the  transaction.  This is consistent with the views of our Board of
Directors, which has unanimously approved the merger with Motor Club."

     Motor Club also held a meeting of its  shareholders  July 12. It  announced
that Motor Club shareholders voted to approve the transaction.

     North East Insurance  Company is a property and casualty insurer located in
Scarborough, Maine.