The Ultimate Fuel Economy Challenge: 100 + Hopefuls Intend to Compete for $10 Million Progressive Automotive X PRIZE;

SANTA MONICA, CA, Aug 27 (MARKET WIRE) --
As American drivers prepare to fill up their gas tanks for what is
regarded as the last long weekend of summer, many hopeful winners of the
Progressive Insurance Automotive X PRIZE -- a multimillion dollar
competition designed to inspire a new generation of viable,
super-efficient vehicles -- are laboring away in their garages and test
facilities, with the shared goal of finding a solution that will make
filling up that gas tank much less painful on the wallet in the coming
years.

To date, more than 120 teams, from 28 states and 17 countries, intend to
compete for their share of a $10 million prize purse, which will be
awarded to those that can design and build production-capable, 100 MPGe
(miles per gallon energy equivalent) vehicles that people will want to
buy and that meet market needs for price, size, capability, safety and
performance.

With registration into the competition now officially open, many of the
100+ teams are also actively working on their applications to become
official contenders of the Progressive Automotive X PRIZE; those who pass
this first round of qualification will move into the next phase of
competition, which includes a dramatic cross country stage race set to
begin next September.

Recent signers of a letter of intent to compete include India's Tata
Motors, Maxi-Eco of Brazil, Drexell University, Western Washington
University, Hybrid Electric Vehicle Technologies, Inc. of Chicago, IL and
TTW Turin Italy of Turin, Italy. Rock and Roll Hall of Famer Neil Young
also intends to enter his 1960 Lincoln Continental conversion into the
competition, along with his partner Jonathan Goodwin.

Interested teams, from established car manufacturers to startups, have an
opportunity to join the competition through January 1, 2009. More
information on registration and rules can be found at
www.progressiveautoxprize.org.

Once registration closes, and the field of competition is in place, teams
will begin preparing for a rigorous long distance stage race that will
combine speed, distance, urban driving and overall performance. The race
is set to kick off in New York City in September 2009, and will continue
in up to nine other major markets throughout the U.S. Vehicles that win
the $10 million prize purse -- offered by Progressive -- will need to
exceed 100 miles per gallon or its energy equivalent, fall under strict
emissions caps and finish in the fastest time.

"The Progressive Automotive X PRIZE is bringing together some of the most
inspiring and innovative minds in the world, in a shared effort to break
America's addiction to oil," said Don Foley, Executive Director. "This
competition has caught the attention of every major auto manufacturer, and
we are confident that it will bring new visibility to a range of
solutions, from both established and emerging sources."

For a list of teams hoping to compete in the cross-country stage race, or
to learn more about the registration process for the Progressive
Automotive X PRIZE, please visit www.progressiveautoxprize.org.

About the X PRIZE Foundation:

The X PRIZE Foundation is an educational nonprofit prize institute whose
mission is to create radical breakthroughs for the benefit of humanity. In
2004, the Foundation captured the world's attention when the Burt
Rutan-led team, backed by Microsoft co-founder Paul Allen, built and flew
the world's first private spaceship to win the $10 million Ansari X PRIZE
for suborbital spaceflight. The Foundation has since launched the $10
million Archon X PRIZE for Genomics, the $30 million Google Lunar X
PRIZE, and the $10 million Progressive Insurance Automotive X PRIZE. The
Foundation, and its revolution partner BT Global Services, are creating
prizes in Exploration (Space and Oceans), Life Sciences, Energy &
Environment, Education and Global Development. The Foundation is widely
recognized as the leading model for fostering innovation through
competition. For more information, please visit www.xprize.org.

About Progressive:

Progressive, founded in 1937, is a leading insurer of cars, motorcycles,
recreation vehicles, boats and commercial vehicles. The Company offers
competitive rates and innovative products and services that meet drivers'
needs throughout their lifetimes as well as 24/7 online and in-person
customer and claims service.

One of Progressive's Core Values is Excellence. To the Company's more than
27,000 people, it simply means seeking constant improvement. Over time,
this has meant introducing revolutionary ideas that make car insurance
easier to shop for, buy and use. It's this same innovative spirit that's
behind the Company's sponsorship of the Progressive Automotive X PRIZE.
The Progressive Automotive X PRIZE will inspire innovation that will
produce more fuel efficient vehicle choices, helping to make a difference
in people's lives.

Progressive's products and services are available locally through more
than 30,000 independent insurance agencies in the U.S., online at
www.progressive.com and by phone at 1-800-PROGRESSIVE (1-800-776-4737).

Contact:
Carrie Fox
202.255.9214
Carrie.Fox@xprize.org

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