FOR IMMEDIATE RELEASE

         Contact: Carl B. Lehmann, CEO or
                  Jeffrey B. Murphy, CFO
                  RTW, Inc.
                  (952) 893-0403


   RTW, INC. ANNOUNCES PROPOSED MERGER WITH AMERICAN PHYSICIANS CAPITAL, INC.

MINNEAPOLIS - November 9, 2001, RTW, Inc. ("RTW" Nasdaq: RTWI) announced today
that it has entered into a letter of intent to be acquired by American
Physicians Capital, Inc. ("APCapital" Nasdaq: ACAP). Under the proposed
transaction, APCapital would acquire all of the 10.3 million currently
outstanding shares of RTW for cash in the range of $3.10 per share. The closing
of the transaction is expected to occur early in 2002. The transaction is
subject to various conditions, such as the completion of due diligence, the
negotiation and execution of a definitive merger agreement, regulatory approvals
and the approval of RTW's shareholders.

     RTW, Inc., based in Minneapolis, Minnesota, manages disability products and
services for employers. Primary among its disability products and services is a
workers' compensation management system designed to lower employers' costs and
return injured employees to work as soon as possible.

     Please note that RTW will be filing a proxy statement with the Securities
and Exchange Commission (the "SEC") after execution of the definitive merger
agreement. The proxy statement will be sent to the shareholders of RTW seeking
their approval of the proposed merger transaction. Shareholders of RTW are
advised to read the proxy statement when it is filed with the SEC because it
will contain important information. Once filed, the proxy statement and other
information filed by RTW may be obtained free of charge at the SEC website at
the following URL: www.sec.gov. In addition, documents filed with the SEC by RTW
will be available free of charge from RTW's corporate secretary, obtained by
addressing a request therefor to: RTW, Inc., ATTN: Merger Document Request, 8500
Normandale Lake Boulevard, Suite 1400, Bloomington, MN 55437. Requests may also
be made by telephone at (952 ) 893-0403.

     RTW, its board and executive officers, as well as certain other members of
management and certain employees may be soliciting proxies from the RTW
shareholders in favor of the merger transaction. Information concerning RTW's
participants in this solicitation is set forth in the company's annual report on
Form 10-K405/A for the year ended December 31, 2000, filed with the SEC on April
30, 2001.

     RTW, Inc. combines its proprietary management systems, the ID 15(R) and the
RTW SOLUTION(R), with insurance products underwritten by an RTW subsidiary,
American Compensation Insurance Company. RTW offers its services to employers in
Minnesota, Wisconsin, South Dakota, Colorado, Missouri, Illinois, Kansas,
Michigan, Indiana, Massachusetts, Connecticut, Rhode Island and New Hampshire.
Clients span many industries including manufacturing, health care, hospitality,
and wholesale/retail. RTW, Inc. is traded on the Nasdaq National Market under
the symbol RTWI.





     Some of the statements made in this News Release, as well as statements
made by the Company in periodic press releases, oral statements made by the
Company's officials to analysts and shareholders in the course of presentations
about the Company and conference calls following earnings releases, constitute
"forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995. These forward-looking statements involve known
and unknown risks, uncertainties and other factors that may cause the actual
results, performance or achievements of the Company to be materially different
from any future results, performance or achievements expressed or implied by the
forward-looking statements. Such factors include, among other things, (i)
general economic and business conditions; (ii) interest rate changes; (iii)
competition and the regulatory environment in which the Company operates; (iv)
claims frequency; (v) claims severity; (vi) the Company's ability to manage both
its existing claims and new claims in an effective manner; (vi) the number of
new and renewal policy applications submitted by the Company's agents; (viii)
the Company's ability to obtain and retain reinsurance at a reasonable cost;
(ix) the Company's ability to maintain a "Secure" rating from A.M. Best , the
(x) the Company's ability to successfully complete the merger transaction with
AP Capital, including successful completion of the due diligence process, the
negotiation and execution of a definitive merger agreement, obtaining regulatory
agency approvals and the approval of RTW's shareholders, and (ix) other factors
as noted in the Company's filings with the SEC. This discussion of uncertainties
is by no means exhaustive, but is designed to highlight important factors that
may impact the Company's future performance.