EXHIBIT 99.1

FOR IMMEDIATE RELEASE


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


RTW, INC. ANNOUNCES TERMINATION OF MERGER DISCUSSION WITH AMERICAN PHYSICIANS
CAPITAL, INC.

MINNEAPOLIS - December 5, 2001, RTW, Inc. ("RTW" Nasdaq: RTWI) announced today
that American Physicians Capital, Inc. ("APCapital" Nasdaq: ACAP) has determined
not to proceed with its proposed acquisition of RTW, Inc. On November 9, 2001,
RTW announced the signing of a letter of intent for a proposed transaction under
which AP Capital would have acquired all of the 10.3 million currently
outstanding shares of RTW for cash in the range of $3.10 per share. Carl
Lehmann, President of RTW, stated "While we are disappointed that the merger
will not be consummated, we intend to focus our energy on returning RTW to
profitability as an independent company. We have a renewed commitment to
continue to serve our customers and business partners with our usual high level
of service."

         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.

         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, 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.