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Stewart Announces 2000 Fourth Quarter and Year-End Results

HOUSTON (February 13, 2001) - Stewart Information Services Corporation (NYSE-STC) today reported results for the fourth quarter and year-end 2000.

For the fourth quarter of 2000, Stewart earned $0.3 million, or $.02 per diluted share, compared to earnings of $1.0 million, or $.07 per diluted share, for the fourth quarter of 1999.

Revenues increased 1.0 percent to $264 million. Revenues for the year 2000 were $935 million, a 12.7 percent decrease from 1999. Net earnings for the year 2000 were $0.6 million, or $.04 per diluted share, as compared with earnings of $28.4 million, or $1.95 per diluted share, for 1999.

The fourth quarter of 2000 included unusual items for provision for regulatory actions brought against the company and losses from certain start-up operations causing net reductions in income after taxes of $1.4 million, or $.09 per diluted share. For the year 2000 as a whole, these items reduced net earnings by $4.7 million, or $.31 per diluted share. For the year 1999, similar start-up operations reduced net earnings by $1.4 million, or $.09 per diluted share. There were no similar items of any significance in the fourth quarter of 1999.

“As a result of soft market conditions from a slowing economy, year-over-year higher interest rates and simultaneous expenditures to grow the base of the company for more profitable operations in the future, operating results were roughly a breakeven situation in 2000,” said Malcolm Morris, chairman of the board and co-chief executive officer. “Although we made sizeable reductions in staff in existing operations this past year, our staffing numbers remained flat due to new acquisitions and growth in the commercial and technology areas. Committed to growing future shareholder wealth, we made the necessary decision in 2000 to close several operations that failed to meet our expectations.

“Ongoing industry consolidation, when coupled with our stellar balance sheet, allowed us to position ourselves to grow significantly in the higher-profit commercial lines of business. To accomplish this, Stewart has expanded offices and personnel in National Title Services-our group serving the national commercial and residential markets. We are excited about the talented associates in this segment and the growth they have already delivered to the company. Stewart Title Guaranty Company, our lead underwriter, received the industry’s largest single company Commercial Capacity Rating by LACE Title Rating Corporation, which strengthens our ability for ongoing expansion.”

“As a 108-year old company, Stewart possesses a long tradition of growth, quality and industry-leading technology,” said Stewart Morris, Jr., president and co-chief executive officer. “We have a mix of bricks and clicks, that in today’s complex old and new economy business environment, serves all facets of the market. Our new transaction management platform, start2close™, is currently undergoing initial field tests and will become a major component in servicing our customers.

“A number of adjustments in staffing within our Real Estate Information group will reduce our expenses going into 2001. This will position this group to contribute to our profit and growth this year. We have invested in e-commerce with RealEC and transaction coordination with start2close.com, as well as electronic production systems in AIM for Windows, Online Docs and Floodwaves. This will yield finer connectivity to our clients and higher productivity within our company.”

As interest rates declined in the fourth quarter of 2000, order counts rose 9 percent from the same period last year - good news for work in progress at the start of 2001. December’s order counts, driven by a growing refinance segment, jumped 21 percent from last year. Unfortunately, December’s severe weather temporarily delayed a portion of closings to 2001.

The outlook for favorable lower interest rates bodes well going in to 2001, with industry experts predicting an increase of more than 39 percent in total residential lending when compared to 2000. A slowing economy could buffer those gains somewhat in real estate sales and construction activity. Proposed tax cuts and interest rate reductions by the federal government are expected to be positive moves for the economy.

Stewart Information Services Corporation is a technology driven, strategically competitive, global real estate information company. Stewart provides title insurance and related services through more than 5,300 issuing locations in the United States and several international markets. A leading provider of real estate information technology and connectivity, Stewart meets the needs of the real estate and mortgage industries through the electronic delivery of services needed for settlement. These services include title insurance, title information, flood determinations, property appraisals, document preparation, credit reports and other real estate information. In addition, Stewart provides expertise in tax-deferred exchanges, surveys and field services. More information about Stewart can be found at www.stewart.com.

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Stewart Information Services Corporation

STEWART INFORMATION SERVICES CORPORATION
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