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Farmers Insurance Announces Building Expansion in CaledoniaPreparing...

Farmers Insurance Group of Companies's174; (www.farmers.com) announced today that it will build two new buildings totaling 275,000 square feet on the existing grounds of Farmers Insurance office facilities located in Caledonia. This development is thanks in part to an attractive incentives package offered by the Michigan Economic Development Corporation (MEDC). The expansion will create a significant number of new jobs in Michigan.

Robert Woudstra, Farmers Chief Executive Officer stated, I am proud to announce that the expansion of Farmers's facilities will bring up to 1,600 jobs to the state. We will break ground this fall on a 175,000 square foot office building, and a 100,000 square foot print and distribution center.

The Farmers Group'ss decision to invest, grow and create thousands of jobs in Michigan demonstrates to the world that Michigan offers companies what they need to be successful, Governor Jennifer M. Granholm said. Our economic development tools and talented workforce, combined with a comprehensive plan to diversify our economy, make Michigan a great place to do business.

Mr. Woudstra described the architectural features, noting an atrium design will connect one existing building to the two additional buildings. In addition to a call center growth space and offices, the buildings will include a print and distribution center, an extension of our award winning University of Farmers training facility, a branch of the Farmers Credit Union and a fitness facility, he added. We will also use local vendors, including the general contractor, civil engineer and excavator for the project.

Farmers has been in Michigan since 1949, noted Mr. Woudstra. Today there are thousands of Farmers employees, agents and district managers all across the Great Lakes State. These are men and women who put their hearts into making Michigan a great place to work and live. I have my own personal connections to Michigan, including years of living and working and raising a family here. Farmers is proud to be a part of the Michigan economy. We are committed to making sure we have the best resources, training and job opportunities available to meet our customers's needs, now and in the future.

We are grateful to The Right Place for their assistance and support while we'sve been moving through the process of developing and implementing these plans. We'sre looking forward to continuing this great relationship as we plant deeper roots here in Michigan, Mr. Woudstra concluded.

Farmers Group, Inc. is a wholly owned subsidiary of Zurich Financial Services, an insurance-based financial services provider with a global network of subsidiaries and offices in North America and Europe as well as in Asia Pacific, Latin America and other markets. Farmers's174; is the nation'ss third-largest Personal Lines Property 's38; Casualty insurance group. Property and casualty products are underwritten and issued by the Farmers Exchanges and their subsidiaries, which Farmers Group, Inc. manages but does not own. Headquartered in Los Angeles, Farmers insurers provide Homeowners, Auto, Business, Life insurance and Financial Services to more than 10 million households. For more information about Farmers, visit our Web site at www.farmers.com.

Contacts:

Mark Toohey

805-907-2216

OR

Jerry Davies

213-400-4459

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