A Garcia

The Company also announced today that Michael J. Krahe, PhD, executive vice president, Human Development and Leadership, has resigned his position with the Company effective July 17, 2008, subject to the terms of a separation agreement. Dr. Krahe has been with ERIE for over 21 years in various capacities in human resource management. Dr. Krahe is leaving the Company to pursue other interests.

The payments to be made to Dr. Krahe under his separation agreement and to Mr. Garcia under his retention agreement are based on the terms of their existing employment agreements with the Company. The Company's share of the payments required under both agreements that have not been previously recorded will be approximately $2.4 million or approximately $0.03 per share of Class A Common Stock. Of that amount, the Company estimates that approximately $1.0 million ($0.01 per share) will be recorded in the second quarter of this year, with the balance being recorded over the retention period of Mr. Garcia's employment. The Company does not anticipate recording any additional significant expense in future periods that is related to these agreements.

Erie Indemnity Company provides management services to the member companies of the Erie Insurance Group, which includes Erie Insurance Exchange, Flagship City Insurance Company, Erie Insurance Company, Erie Insurance Property and Casualty Company, Erie Insurance Company of New York and Erie Family Life Insurance Company.

According to A.M. Best Company, Erie Insurance Group, based in Erie, Pennsylvania, is the 16th largest automobile insurer in the United States based on direct premiums written and the 21st largest property/casualty insurer in the United States based on total lines net premium written. The Group, rated A+ (Superior) by A.M. Best Company, has over 3.9 million policies in force and operates in 11 states and the District of Columbia. Erie Insurance Group ranks 488 on the FORTUNE 500.

News releases and more information about Erie Insurance Group are available at http://www.erieinsurance.com .

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Certain statements contained herein are forward-looking and, as such, may involve risks and uncertainties. These forward-looking statements reflect the Company's current views about future events, are based on assumptions, and are subject to known and unknown risks and uncertainties that may cause results to differ materially from results anticipated in those statements. Many of the factors that will determine future events or achievements are beyond our ability to control or predict. The Company assumes no obligation to publicly update or revise any forward-looking statements.

CONTACT: Mark Dombrowski, Corporate Communications

              1-800-458-0811 ext. 2285 or 814/870-2285
              mark.dombrowski@erieinsurance.com

SOURCE Erie Indemnity Company

http://www.erieinsurance.com

Garcia joined the company 27 years ago, and has served as CFO for the last 11 years.

Erie shares closed at $47.16 on Wednesday. Christie Rizk cr/vj

COPYRIGHT

Copyright Thomson Financial News Limited 2007. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.

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The new contract will result in the Bulktrans division providing ongoing transport services to this major client for a further four years from 2009.

JAPAN'S CRUDE OIL IMPORT PRICES SOARED TO ALL-TIME HIGHS IN JUNE

TOKYO - Prices of crude oil procured directly from producer nations under long-term arrangements by Japanese oil distributors such as Nippon Oil Corp. (TSE:5001) and Idemitsu Kosan Co. (TSE:5019) leapt to record levels in June.

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BEIJING COMPLETES OIL/GAS COLLECTION PROJECT, CUTS EMISSIONS

BEIJING - Beijing Municipality has completed the project of collecting and controlling oil and gas emitted by filling stations, fuel tank trucks and oil storage tanks as scheduled, which will reduce the emission of oil and gas by 20,000 tons a year, announced the Beijing Municipal Environmental Protection Department on June 30.

According to the municipal environmental protection department, Beijing consumes more than 3.2 million tons of gasoline annually, and about 20,000 tons of oil and gas were emitted into the air before the completion of the project.

PHILIPPINES' VECO ACQUIRES US$3.8 MLN TRANSCO ASSET IN CEBU

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Veco president Dennis N.A. Garcia and Transco president Arthur Aguilar signed the deed of absolute sale at the Transco headquarters on June 24, 2008.

CHINESE OIL REFINERS CONTINUE TO STRUGGLE WITH RISING PRICES

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CHINESE OIL GIANT CHIEF BLAMES SPECULATION FOR OIL PRICE RISE

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INDONESIAN CEMENT CO HOLCIM'S PROJECT COSTS SWELL

JAKARTA - Cement maker PT Holcim Indonesia will spend a lot more to build its new cement plant in Tuban, East Java on a surge in the prices of steel and oil fuel.

The project was earlier estimated to cost US$420 million but now the cost has swelled to around US$550 million, a company official said.

INDONESIAN INVESTMENT IN MINING SECTOR TIPPED TO BE FLAT

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LARGE BIO-DIESEL PROJECT BEGINS OPERATION IN EASTERN CHINA

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PHILIPPINES POWER FIRM REMITS NEARLY $US150,000 FOR ENERGY FUND

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FORESTRY, TREE PLANTING MUST BE COVERED BY AUSTRALIA'S ETS: NAFI

CANBERRA - Tree plantations must be fully covered by emissions trading to recognise their role in consuming carbon dioxide, the industry says.

Economist Ross Garnaut on Friday is to release his draft report on tackling climate change, and tree planters are worried they might be left in the cold.

XSTRATA TO STUDY DEVELOPING COAL EXPORT OPS IN QUEENSLAND

PERTH - Xstrata Coal has committed to commence a A$4 million (US$3.80 million) pre-feasibility study on the development and operation of a coal exporting terminal at Port Alma, Queensland.

The proposed coal terminal could have a capacity of at least 20 million tonnes per annum.

EX-MACARTHUR COAL CEO BUYS STAKE IN U.S. COAL COMPANY PBS

MELBOURNE - Ken Talbot's private investment vehicle Talbot Group Holdings has taken a significant stake in US coal company PBS coals Inc.

PBS Coals produced about two million tonnes of coal in 2007, primarily coking coal - used in the production of steel - from its mines in the US state of Pennsylvania.

INDIA'S BHEL WINS US$481 MLN TURNKEY POWER CONTRACT IN SYRIA

NEW DELHI - State-run engineering giant Bharat Heavy Electricals Ltd (BSE:500103) on Tuesday said it has bagged a Rs 2,080 crore (US$481 million) turnkey contract to develop 400 MW thermal power project in Syria.

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CPC CORP TAIWAN INCREASES GASOLINE PRICES

TAIPEI - The state-run petroleum company, CPC Corp. Taiwan (CPC), announced Tuesday that it will raise prices of gasoline by N$1.5 (US$0.04) per liter and diesel by NT$1.6 per liter, effective midnight that day.

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TAIWAN'S FPCC FOLLOWS CPC'S LEAD TO INCREASE GAS PRICES

TAIPEI - The privately owned Formosa Petrochemical Co. (FPCC) (TAIEX:6505) decided to follow the lead of the state-run CPC Corp., raising gasoline and diesel prices Tuesday by NT$1.5 (US$0.04) and NT$1.6 a liter, respectively, with effect from July 2.

The state-run oil refiner on Tuesday announced its first price hike since May 28 when it raised gasoline prices by NT3.9 per liter. The increases reflect the skyrocketing prices of international crude oil, which traded at US$136.15 a barrel on Monday.

BROKERS REMAIN NEUTRAL ON BABCOCK & BROWN

SYDNEY - Analysts remain divided on whether Babcock & Brown Ltd (ASX:BNB) will meet its annual earnings guidance, with the most optimistic predicting it will just scrape over the line.

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CHINA TELLS DOMESTIC OIL PRODUCERS TO "DIG DEEP" INTO POTENTIAL

CANGZHOU - Ten days after the Chinese government raised fuel prices, Vice Premier Li Keqiang has urged domestic oil producers to increase supplies and asked local governments to deliver subsidies to affected sectors and people.

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BANGLADESH FUEL STATIONS CLOSED FOLLOWING PRICE HIKE

DHAKA - Most petrol pumps across Bangladesh were abruptly closed at 8 p.m. Monday night following the government's announcement of fuel price hike, leaving scores of vehicles stranded at refilling stations.

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AUSTRALIA'S BEACH PETROLEUM CLOSING OUT LARGE PART OF HEDGE BOOK

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MALAYSIAN COS URGED TO EXPLORE BIZ OPPORTUNITIES IN VENEZUELA

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SRI LANKA MULLS OIL SPILL FUND

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PAKISTAN, INDIA RESOLVE ISSUES BLOCKING GAS PIPELINE PROJECT

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AUSTRALIAN BUSINESSES UNPREPARED FOR CARBON TRADING: SURVEY

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CHINA'S ECONOMIC GROWTH SLOWED BY RISING OIL PRICES: REPORT

BEIJING - Record-breaking international oil prices are affecting China's economy, according to the latest report by Guotai Junan Securities.

High oil prices will bite into China's substantial trade surplus and reduce economic growth.

PAKISTAN TO INK DEAL FOR IMPORT OF CENTRAL ASIAN ELECTRICITY

ISLAMABAD - Pakistan will sign the final agreement for import of 1000 MW electricity from Central Asian Republics during a meeting of the Inter-Governmental Council (IGC) to be held in Islamabad next month.

The announcement was made by Federal Minister for Water and Power - Pakistan will sign the final agreement for import of 1000 MW electricity from Central Asian Republics during a meeting of the Inter-Governmental Council (IGC) to be held in Islamabad next month.

The announcement was made by Federal Minister for Water and Power, Raja Pervez Ashraf while talking to the Ambassador of Kyrgyzstan, Nurlan Aitmurzaev who called on the Minister here Friday in the Ministry.

CHINA CONTINUES TO FACE TIGHT COAL SUPPLIES

BEIJING - Coal used in power generation will continue to be in short supply, said an official with the China Electricity Council.

"The supply of coal, which fuels over two-thirds of China's power plants, is still limited nationwide, causing big pressure for the country's power plants as well as the total power supply in the country," said Xue Jing, director of the department of statistics and information under the China Electricity Council.

CHINESE AIRLINES SAY FUEL SURCHARGES RISE BRINGS LITTLE BENEFIT

BEIJING - Chinese airlines, currently suffering a sluggish aviation market, said an increase in jet fuel surcharges, effective as of Tuesday, was not expected to bring much benefit for them.

From July 1, passengers who buy tickets on domestic flights will have to pay extra fuel charges after the Civil Aviation Administration of China (CAAC) approved increased jet fuel surcharges amid rising world oil prices.

CHINA COMPLETES LARGEST NATURAL GAS PROCESSING PLANT IN MONGOLIA

BEIJING - China National Petroleum Corporation, parent company of PetroChina, announced Monday that it has completed the building of a five billion-cubic meter natural gas processing plant, the largest in China, in Inner Mongolia Autonomous Region.

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BEIJING - Construction of Sinopec's Daniudi Gas Field in Ordos Basin and the Tabamiao-Yulin natural gas pipeline has been completed and has just passed examination and acceptance, Sinopec Group reported.

This means that Daniudi Gas Field with an annual production capacity of 1 billion cubic meters enters the stage of development and production and will be one of Sinopec's major natural gas replacement areas.

CHINA TO ADJUST UP ON-GRID ELECTRICITY PRICES

BEIJING - China's national economy planner National Development and Reform Commission (NDRC) will issue detailed rules and regulations for localities in its move to adjust on-grid electricity prices.

It is learnt that assessment work for the national on-grid price hikes was completed on June 27.

PERTAMINA RAISES PRICES OF INDUSTRIAL FUELS

JAKARTA - State-owned oil and gas company PT Pertamina has raised the prices of non subsidized industrial fuel by 3.33 per cent on the average partly on falling value of the rupiah to the U.S. dollar.

The price of industrial gasoline was lifted 3 per cent from the last increase on June 15 and the kerosene price by 1.1 per cent, high speed diesel by 3.8 per cent and marine diesel fuel by 5.4 per cent, effective from today, the company said.

The sub-Transmission assets covered in the contract to sell purchase involves 5.93 circuit kilometers, 33 line structures and two 100-MVA transformers in Banilad, the Banilad-Canduman, Mandaue and the Busay-Malubog 69-kilovolt lines in Cebu.

The purchase contract was entered into in January, 2005. The application for approval of the said contract was submitted to the Energy Regulatory Commission (ERC) in April 2005, ERC approved the application in April this year.

The sale is one of the biggest cash deals since Transcos sub-transmission asset divestment program started in 2004, Aguilar said.

The Electric Power Industry Reform Act (Epira) mandates the divestment of sub-transmission asset to qualified distribution utilities.

Garcia expressed full support to Transcos sub-transmission set divestment program.

"Veco is committed to purchase the other sub-transmission assets in its franchise area," he said. He added that Veco looks forward to a continued partnership with Transco in facing the new challenges in the power industry, and to provide better and more affordable service to customers.

Veco serves more than 280,000 customers in the cities of Cebu, Mandaue, Talisay and Naga and the municipalities of Consolacion, Liloan, Minglanilla and San Fernando in Cebu. It is owned and managed by the Garcia and Aboitiz families of Cebu.

(PNA)