New Chair of the Board for CAA South Central Ontario

The Board of Directors of CAA South Central Ontario is pleased to announce the election of Bill Graham as Chair of the Board effective May 16, 2007. Mr. Graham is President and Chief Executive Officer of Quartham International and Quartham Investment Group Limited, located in Toronto. He is also Executive-in-Residence, International MBA Program at Schulich School of Business, York University. He was appointed to the Board of Directors of CAA South Central Ontario in 2003. Mr. Graham serves on all Board Standing Committees, namely Governance and Nominating; Audit and Risk; Human Resources and Public & Government Affairs which also incorporates Corporate Social Responsibility (CSR)

Board Remuneration Policy

The By-laws of CAA Insurance Company (Ontario) ("CAA Insurance"), a subsidiary corporation of CAA South Central Ontario, authorize the payment of remuneration for services rendered to CAA Insurance by its Directors.

Effective May 11, 2006, the basis of the remuneration schedule of the Board of Directors of CAA Insurance has changed from an annual fee plus a per diem per meeting attended basis, to an annual flat fee as set out in the following schedule:

*Board member not serving as Chair or Vice Chair of the Board, or as a Chair of a Committee of the Board.

The decision was made taking into account research into the current business trend to compensate Directors on an annual flat fee basis. The above fee schedule will be reviewed on a bi-annual basis.