**Exhibit 99.1**
November 2, 1999
**RTW, INC. AND ITS MAJORITY STOCKHOLDERS ARE SEEKING A NEWMAJORITY INVESTOR**
     MINNEAPOLIS — RTW, Inc. (Nasdaq: RTWI) andDavid C. Prosser, RTW’s Chairman, announced today thata group consisting of Mr. Prosser, members of his family,and Alex Fjelstad, an RTW director and former RTW executive, have retained Goldsmith Agio Helms Securities, Inc. to explore a sale of the group’s shares to a new strategic investor in RTW.The group holds a total of 6,382,896 shares or approximately 52%of all outstanding shares. Any sale of the group’s shareswould require approval by RTW’s Board. The Board hasappointed a special committee of independent directors toevaluate any proposed transaction, and the committee has retained Hales & Company as its financial advisor to assist in thisprocess.
     The proposed sale is being pursued by the Prosser group forpersonal financial and estate planning purposes, and does notreflect a lack of confidence in management or the Company’sfuture. RTW’s Board respects these objectives and willcooperate with the Prosser group and Goldsmith Agio HelmsSecurities, Inc. in their efforts to identify a buyer for theirshares. At the same time, the Board is enthused about theCompany’s prospects as an independent public company and the opportunity to build shareholder value following the currentbusiness plan. The contemplated sale by the Prosser group offersthe potential for a strategic partnership, which could enhancethe Company’s pursuit of its business plan for the benefitof RTW’s remaining shareholders.
     RTW, Inc. based in Minneapolis, Minnesota, manages disabilityproducts and services for employers. Primary among its disability products and services is a workers’ compensation management system designed to lower employers’ costs and returninjured employees to work as soon as possible. RTW, Inc. combines its proprietary management system, the RTW SOLUTION®, withinsurance products underwritten by an RTW subsidiary, AmericanCompensation Insurance Company. RTW offers its services toemployers in Minnesota, Wisconsin, South Dakota, Colorado,Missouri, Illinois, Kansas, Michigan, Indiana, Massachusetts,Connecticut, Rhode Island and New Hampshire.
     Certain items in this release are forward-looking statements,which are made in reliance upon the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Theseforward-looking statements involve known and unknown risks,uncertainties and other factors that may cause the actualresults, performance or achievements of the Company to bematerially different from any future results, performance orachievements expressed or implied by the forward-lookingstatements. Such factors include, among other things, (i) general economic and business conditions; (ii) interest ratechanges; (iii) competition and the regulatory environment in which the Company operates; (iv) claims frequency;(v) claims severity; (vi) the Company’s ability to manage both its existing claims and new claims in an effectivemanner; (vii) the number of new and renewal policyapplications submitted by the Company’s agents;(viii) the Company’s ability to successfully introducenew products and services; (ix) the ability of the Companyand its third party providers, agents and reinsurers toadequately address year 2000 issues; and (x) other factorsas noted in the Company’s filings with the SEC. Thisdiscussion of uncertainties is by no means exhaustive but isdesigned to highlight important factors that may impact theCompany’s future performance.
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