SASKATCHEWAN AND MANITOBA PARTNER TO DELIVER PHOTO LICENCE SERVICES

Released on April 7, 2006

A unique partnership will significantly cut the cost of producing photo ID cards for drivers in Saskatchewan and Manitoba, both provinces announced today.

In the fall of 2006, Saskatchewan Government Insurance (SGI) will begin producing the photo card portion of the Manitoba driver's licence. The resulting economies of scale will reduce the cost of printing a photo ID card in each province to $1.62, leading to a 19 per cent reduction in cost for Saskatchewan and a saving of nearly 50 per cent per card for Manitoba.

"Entering into this partnership with Manitoba saves money now and is the first step toward working together in the future," SGI President Jon Schubert said. "There is potential savings of $350,000 to $400,000 over the agreement's life span through sharing fixed costs associated with required system upgrades in the production of photo ID cards."

The agreement provides Manitoba with a reliable, cost-effective replacement for its current photo ID card technology, which is rapidly nearing the end of its useful life. By partnering with SGI, Manitoba can avoid investing several millions of dollars in equipment while gaining a photo ID card that is superior to its current card in many ways.

"This partnership with SGI provides Manitobans with the best possible combination of affordability, security, service and reliability," Manitoba Public Insurance president and CEO Marilyn McLaren said. "Both of our organizations strive for these goals every day, and that's why this partnership makes so much sense."

SGI will perform this service for Manitoba on a cost recovery basis. Manitoba Public Insurance will reimburse SGI for start-up costs, which are projected to be $60,000 to $80,000. SGI currently has the printing capacity to accommodate the additional volumes without impacting Saskatchewan drivers or customer service levels.

SGI introduced the use of a digitized photo card as part of the Saskatchewan driver's licence in 2001.

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For More Information, Contact:

Kim Hambleton SGI Communications Regina Phone: (306) 775-6907

Brian Smiley Manitoba Public Insurance Winnipeg Phone: (204) 985-7300