N.E.W. Customer Service Companies, Inc. Announces Recapitalization

Sterling, VA, July 1, 2005 - N.E.W. Customer Service Companies, Inc. (NEW), the nation's leading provider of extended service contracts and buyer protection programs, today announced that it has completed a $370 million debt refinancing. As part of the recapitalization, the company will pay a cash dividend to its shareholders, including TH Lee Putnam Ventures, Freeman Spogli and management.

NEW noted that the recapitalization follows one of the fastest-growth years in its 22-year history. Significant achievements by NEW over the last 12 months include:

· Being the first company in the service plan industry to receive certification under the J.D. Power and Associates Certified Call Center Program.

· Handling 8.6 million consumer calls and dispatching 1.7 million service calls through a nationwide network of 25,000 independent repair facilities.

· Generating $1.8 billion in retail sales for its clients.

· The addition of its sixth call center, in Hays, Kansas.

CEO and Chairman Fred Schaufeld, who founded NEW in 1983, said, “This transaction is a confirmation of the success of NEW in the only market that really matters: the customer marketplace. Since the investment by TH Lee Putnam Ventures and Freeman Spogli last year, we have upgraded our infrastructure, enhanced our customer service and introduced new products and services. I am grateful to have the continuing support of these two investment groups.”

Renny Smith, Managing Director of TH Lee Putnam Ventures, said, “The success of this transaction is a reflection of the strength of the NEW business strategy. In many ways, NEW has reinvented the extended service contract industry. It has made the service process customer friendly; it has transformed the service plan sales pitch to focus on the convenience of the extended service contract; it has expanded the scope of products that are protected beyond traditional consumer electronics and appliances to now include categories such as jewelry, sporting goods, lawn & garden, and satellite TV. These innovations have helped fuel strong organic growth from NEW’s current clients and have helped them secure new contracts with leading national retailers and manufacturers.

“As the J.D. Power and Associates recognition indicates, NEW’s industry-leading levels of customer satisfaction result in brand-loyal consumers,” he added. “And NEW’s own customers – representing some of the largest retailers, utilities, manufacturers and credit card issuers in the country – are reaping the rewards of those efforts through satisfied customers who remain brand loyal and continue to buy their products for years to come.”

The offering was lead managed by CIBC World Markets.

About NEW

N.E.W. Customer Service Companies, Inc. (NEW) (www.newcorp.com) is the nation's leading provider of extended service plans, buyer protection services and product support for businesses and consumers. With more than 20 years experience, NEW provides exceptional post-sale consumer care for many of the nation's largest retailers, manufacturers, utilities and financial services firms, providing coverage last year to more than 100 million consumers. Through its commitment to customer care, NEW delivers ongoing revenue, unrivaled customer support, seamless service administration and the competitive edge needed to succeed in a rapidly changing marketplace. This philosophy has positioned the company as the leader in the marketing and administration of extended service plans and other value-added buyer protection and information services. NEW is headquartered in Dulles, VA, and operates six communication centers located in Montana, Florida, Virginia, Kansas and Oregon. NEW has over 2,300 employees nationwide. For more information, please visit NEW at www.newcorp.com or call 1-800 WHAT'S NEW

Media Contacts:

For NEW: Robert Miller, Group Vice President, Sales & Marketing. rmiller@newcorp.com, 703-788-5428

For TH Lee Putnam Ventures: Jenna Focarino, Miller DeMartine Group. jfocarino@mdgpr.com, 203-221-2790/845-893-7586

For Freeman Spogli: John Roth, Freeman Spogli & Co. 212-758-2555

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