DCAP Group Receives Nasdaq Deficiency Notice

  
    
  
  
    
      DCAP Group, Inc. (NASDAQ: DCAP), the largest chain of independent 
      storefront insurance agencies in the Northeast, today announced that, on 
      October 1, 2008, the Company received a deficiency notice from The 
      Nasdaq Stock Market notifying the Company that it is not in compliance 
      with Nasdaq Marketplace Rule 4310(c)(4) because the Company's common 
      stock closed below the minimum bid price of $1.00 per share for the 
      preceding 30 consecutive business days.
    
    
      In accordance with Marketplace Rule 4310(c)(8)(D), DCAP Group has been 
      provided an initial period of 180 calendar days, or until March 30, 
      2009, to regain compliance with the minimum $1.00 share bid price 
      requirement. According to the letter, if at any time before March 30, 
      2009, the bid price of the Company's common stock closes at $1.00 per 
      share or more for a minimum of 10 consecutive business days, Nasdaq will 
      notify the Company that it has achieved compliance with Nasdaq's 
      Marketplace Rule 4310(c)(4), although the letter also states that the 
      Nasdaq staff has the discretion to require compliance for a period in 
      excess of 10 consecutive business days, but generally no more than 20 
      consecutive business days, under certain circumstances.
    
    
      If the Company cannot demonstrate compliance with Rule 4310(c)(4) by 
      March 30, 2009, the Nasdaq staff will determine whether the Company 
      meets The Nasdaq Capital Market initial listing criteria as set forth in 
      Nasdaq Marketplace Rule 4310(c), except for the bid price requirement. 
      According to the letter, if the Company meets the initial listing 
      criteria, the Nasdaq staff will notify the Company that it has been 
      granted an additional 180 calendar day compliance period. If the Company 
      is not eligible for an additional compliance period, the Nasdaq staff 
      will provide written notice that the Company's securities will be 
      delisted. At that time, the Company may appeal the Nasdaq staff's 
      determination to delist its securities to a Listing Qualifications Panel.
    
    
      About DCAP Group
    
    
      DCAP Group, Inc. owns and operates the largest chain of independent 
      storefront insurance agencies in the Northeast. Through DCAP Insurance, 
      Barry Scott Insurance, Atlantic Insurance Agency and Accurate Agency, 
      DCAP Group provides automobile insurance (and to a lesser extent, 
      motorcycle and homeowners), enhanced by complimentary premium financing 
      capabilities, to retail customers in New York and Pennsylvania. Other 
      products include automobile club service for roadside emergencies and 
      income tax preparation services. As of October 6, 2008, there were 64 
      owned or franchised storefront locations.
    
    
      Forward Looking Statements
    
    
      Statements in this press release may contain “forward-looking 
      statements” within the meaning of the Private 
      Securities Litigation Reform Act of 1995. All statements, other than 
      statements of historical facts, may be forward-looking statements. These 
      statements are based on management’s current 
      expectations and are subject to uncertainty and changes in 
      circumstances. These statements involve risks and uncertainties that 
      could cause actual results to differ materially from those included in 
      forward-looking statements due to a variety of factors. More information 
      about these factors can be found in DCAP’s 
      latest Annual Report filed with Securities and Exchange Commission under 
      Form 10-KSB. The company undertakes no obligation to publicly update or 
      revise any forward-looking statements, whether as a result of new 
      information, future events or otherwise.