It is with a great deal of excitement and pleasure that I announce the signing of a definitive agreement under which Hilb, Rogal & Hobbs Company (NYSE: HRH), will buy the stock of Zutz Associates, Inc. ("Zutz Insurance Group") at closing on March 1st. Zutz Insurance, Delaware's largest, independently-owned insurance agency, will become part of the 8th largest U. S. insurance and risk management intermediary and 10th largest in the world.

After more than 65 years of successful trading as a private firm, we are becoming part of one of America's most successful organizations, and the combination only enhances our existing strengths, giving us even greater national and international capabilities. Our clients will benefit from increased efficiencies and greater access to insurance markets.

One of the important features of the transaction is that we shall remain in our current Wilmington, Delaware location with the same group of talented and dedicated employees, trading as "Zutz Insurance Group". The Zutz family will continue to oversee operations and the management team will remain - in effect, we just got bigger and better, but life will "go on pretty much as usual."

Zutz Insurance began in 1940 when my father, Harry David, founded the agency. It has succeeded because of his work ethic, his values, his integrity, and his professionalism. Ted Zutz joined the firm in 1956. Both of them are still around today, and I am pleased to acknowledge their support for this transaction which will ensure that their legacy endures.

Finally, we are excited also that the RTA benefits staff, headed by Mike Taylor and Kent Evans and trading as HealthSelect^SMare also a part of this transaction. They have been an integral part of our success over the past ten years, and we are gratified that they are becoming part of the HRH family.

We truly look forward to continuing to serve the insurance needs of the thousands of individuals and companies we count as clients; and we look forward to even more opportunities to serve in the future.

For more information go to www.hrh.com