DCAP Dcap Grp. (MM)

DCAP Group, Inc. (NASDAQ: DCAP) today reported a net loss for the full year 2008 of $977,206 (or ($0.33) per diluted share) as compared to a net loss of $47,445 in 2007 (or ($0.02) per diluted share). Net loss from continuing operations was $195,693 in 2008 as compared to a net loss from continuing operations of $465,284 in 2007. Loss from discontinued operations, net of tax, was $781,513 in 2008, as compared to income of $417,839 in 2007.

Year in Review

During 2008, we were forced to close unprofitable storefronts. We have since entered into an agreement to sell our New York State based retail locations, and will also seek to sell our remaining three locations in Pennsylvania. We include the financial results of our retail locations as discontinued operations and have reclassified our 2007 results to reflect the same.

Mr. Goldstein stated, �Our Board and management continually address the opportunities and challenges of the insurance marketplace. Our objective is to place our company�s capital in those parts of the business where the best results can be expected.�

Financial Results

� � 2008 � � � 2007 � � Commissions and fee revenue from continuing operations (1) $ 911,225 $ 649,246 (Loss) from continuing operations-net of tax (195,693 ) (465,284 ) (Loss) Income from discontinued operations-net of tax (781,513 ) 417,839 Net (Loss) Income (977,206 ) (47,445 ) � Basic and Diluted Per Share Information: Loss from continuing operations (0.07 ) (0.16 ) (Loss) Income from discontinued operations (0.26 ) 0.14 Loss per common share (0.33 ) (0.02 ) �

Weighted Average Basic and Diluted Shares Outstanding

2,972,597 2,963,036 �

(1) Includes premium finance placement fees and revenue from franchises.

Forward Looking Statements

Statements in this press release may contain �forward-looking statements� within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, may be forward-looking statements. These statements are based on management�s current expectations and are subject to uncertainty and changes in circumstances. These statements involve risks and uncertainties that could cause actual results to differ materially from those included in forward-looking statements due to a variety of factors. More information about these factors can be found in DCAP�s latest Annual Report filed with Securities and Exchange Commission under Form 10-K. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.