Via Facsimile — (662) 842-7798

Donald E. Wildmon
Founder and Chairman
American Family Association

Dear Mr. Wildmon:

Your organization is suggesting to its supporters that they boycott Progressive as a result of personal contributions to the ACLU made by Peter Lewis.

On behalf of the more than 28,000 employees and more than 14.5 million customers of the subsidiaries of The Progressive Corporation and the thousands of Progressive shareholders, I would like to share some facts.

• Peter Lewis is the non-executive Chairman of the Board of The Progressive Corporation; he is not an employee and he is not active in the day-to-day management of the company or its subsidiaries. He has not been involved in a management role since he retired from the position of CEO five years ago.

• The Progressive Corporation does not contribute or provide any financial support to any organizations or causes other than two non-profit organizations working to reduce the human trauma and economic cost of auto accidents. The Progressive Corporation does contribute annually to the Progressive Insurance Foundation which provides matching funds to eligible 501(c)(3) charitable organizations to which our employees contribute their personal funds. Since the Foundation was formed in 2001, the overwhelming majority of all matching funds have gone to religious organizations to which our employees contribute. In 2005, in addition to the traditional support of our employee’s religious organizations, a significant amount of matching funds will go to the hurricane relief effort, as we offered a 200 percent match to all of our employees’ contributions to help hurricane victims. In total, based on the generosity of our employees and the match from the Foundation, we have now raised over $1,350,000 for hurricane relief in 2005.

• Peter Lewis makes contributions to causes in which he believes using his personal funds, just as you and I do. Just as the Corporation cannot dictate the organizations to which I make my personal donations, we cannot dictate the organizations to which Peter contributes. His personal contributions, like mine, in no way reflect beliefs held by The Progressive Corporation.

• Peter Lewis has no involvement or affiliation with the Progressive Insurance Foundation; since he is not an employee of any Progressive company, the Foundation does not match any personal contributions he makes.

I hope this information has helped you to understand better the facts surrounding this issue and I hope you will reconsider your boycott.