Since 1982, DORN has served the self-insured and self-administered markets, including third party administrators serving those markets. It provides software and services for the risk, claims, healthcare and safety management industries, providing its clients with a total claims processing solution that includes software, installation, training, support, custom programming and consulting services.

"This acquisition allows PMSC to tie together claims processing functions with claims settlement processes such as reducing claims payout, litigation management and fraud detection," said Mike Gantt, senior vice president of PMSC's Claims and Benefits Solutions Business Group. "Insurance companies, self-insureds and TPAs will be able to choose PMSC's integrated suite of products to serve virtually all of their needs.

"We're truly excited about the addition of the team at DORN Technology Group," added Gantt. "For years, they've been recognized as innovative leaders with a recognized commitment to quality and service. We've joined with a proven winner to build a winning future."

DORN had 1998 revenue of $11.8 million, serving more than 500 client locations employing its RISKMASTER(R) and QUEST(R) product lines. RISKMASTER, one of the first personal computer-based risk management systems, contains core program modules for Workers' Compensation, General Claims, Vehicle Accidents, Policy Management, and Medical Bill Review. DORN's RISKMASTER/World(TM) is the risk management industry's largest-scale client- server database program. It is compatible with Microsoft (R)Windows NT(R), Windows(R) 98 and Windows 95, as well as Microsoft's SQL server 7.0. Dorn will continue to operate as a separate business unit with its existing management team.

DORN founder Mark Dorn said the merger benefits DORN's clients and employees in many ways. "PMSC's size and knowledge of insurance, combined with our experience in risk management, provide exciting new opportunities for our clients and staff," he said. "This relationship will complement the service we provide our clients and open PMSC's international markets to these products. Joining PMSC will help DORN speed our product development and facilitate our rapid growth."

In 1995, DORN developed a universal claim data standard, aimed at saving the risk management industry millions of dollars in data reformatting and conversion costs. Industry leaders have recognized these efforts. The claim data standard helps facilitate greater electronic commerce activity among insurers, claimants, repair facilities, and all other parties involved in settling a claim. Additional information about DORN Technology Group, Inc., the claim data standard, and the company's family of products and services can be found at www.dorn.com .