xwave awarded eBusiness contract to web-enable operations

TORONTO, ON May 7, 2001 – xwave, an Aliant company,
announced today it has been awarded a contract with Kingsway Financial Services Inc. (TSE:
KFS) to extend its insurance policy management system that will provide Kingsway brokers
with secure web-based access to policy and claim files. The contract, valued at $1
million, also calls for xwave to develop a document management system for Kingsway.

xwave will transform an existing legacy system into
a web-enabled tool to be used by 4,000 Kingsway insurance brokers across Canada. The
Internet-based “point-of-sale” system will allow brokers to quickly and easily
access quotes and create policies as well as to make queries to solve and answer
policyholder questions regarding underwriting information, premiums, endorsements and
claim payments. This transformation will build on the many strengths of the existing
system and will provide a firm foundation on which to make system functionality available
to Kingsway’s brokers.

xwave will also design and implement a fully
integrated document management system that will help streamline Kingsway’s business
processes. The new system will allow both the underwriting and claims department to have
quicker access to both policy and claim files on-line in a secure environment. The
solution will enable management to scan all claims and policies as well as analyze
workflow in order to actively manage and optimize operations.

xwave is helping Kingsway leverage the
internet so that it will be easier and more efficient for our brokers to do business with
us,” said Bill Star, President, Kingsway Financial Services Inc. “The intuitive
and scalable point-of-sale system, combined with our document management solution, will
allow us to enhance our service to brokers, help streamline operations and reduce both the
traffic to our help desk and our reliance on a paper-based system.”

“This engagement will ultimately allow Kingsway to
concentrate on its business needs, maintain an edge in an increasingly competitive
marketplace and work more effectively with its brokers,” said Ranald McGillis, Vice
President, Central Business Unit, xwave. “For example, Kingsway’s
web-enabled system will allow brokers to integrate electronically with the firm while the
document management solution will process policies quickly and effectively. The contract
also demonstrates xwave’s ability to develop web-based solutions that build on
rather than replace existing systems, thereby protecting our customer’s investments
in these systems. ”

xwave recently developed similar solutions for
Benefit Management Limited (BML) and Growth Stage Consulting. For BML, xwave
designed benefits PlanNet™, the first real-time, web-enabled benefit
management application available in Canada. For Growth Stage, the company developed a
real-time web-enabled solution that allows agriculture professionals to access precise,
customized information on soil conditions and detailed weather forecasts.

About Kingsway Financial

Kingsway’s primary business is the insuring of
automobile risks for drivers who do not meet the criteria for coverage by standard
automobile insurers. The Company currently operates through nine wholly owned subsidiaries
in Canada and the U.S. Canadian subsidiaries include Kingsway General Insurance Company,
York Fire & Casualty Insurance Company and Jevco Insurance Company. U.S. subsidiaries
include Universal Casualty Company, American Service Insurance Company, Southern United
Fire Insurance Company, Walshire Assurance Company, Hamilton Investments, Inc. and Avalon
Risk Management, Inc. The Company also operates reinsurance subsidiaries in Barbados and
Bermuda. Kingsway Financial, Kingsway General, York Fire, Jevco and Kingsway Reinsurance
(Bermuda) are all rated “A” Excellent by A.M. Best. The Company’s senior
debt is rated ‘BBB-‘ (investment grade) by Standard and Poor’s. The common shares of
Kingsway Financial Services Inc. are listed on the Toronto Stock Exchange, under the
trading symbol “KFS”.

About xwave

xwave, an Aliant company, delivers complete IT
services to clients through three service lines: systems integration and software
engineering, infrastructure services and product fulfillment. These areas offer clients a
broad delivery capability to plan, design, build and operate IT solutions that span both
corporate and operational systems, and to provide their infrastructure needs. According to
International Data Corporation (IDC), xwave is one of Canada’s largest and
fastest growing companies, with more than $330 million in revenues and 2,400 people at
offices in St. John’s, Halifax, Moncton, Saint John, Fredericton, Montreal, Ottawa,
Toronto, Calgary, Edmonton, Dallas, New England and Dublin, Ireland. More information can
be found at

For further information, contact:
[email protected]
905 670-1225 ext. 364