<PAGE>   1
                                                                    EXHIBIT 99.1


                  Contact: Carl B. Lehmann, CEO or
                           Jeffrey B. Murphy, CFO
                           RTW, Inc.
                           (612) 893-0403

March 28, 2000

                    RTW, INC. REPURCHASES SHARES FROM ITS MAJORITY SHAREHOLDERS

MINNEAPOLIS, MN -- RTW, Inc. (Nasdaq: RTWI) announced today that it repurchased
approximately 1,419,000 shares from a group consisting of David C. Prosser,
RTW's founder and a director, certain members of his family, and J. Alexander
Fjelstad, an RTW director and former RTW executive (together, the "Prosser
Selling Group"). The Company paid $5.19 per share or approximately $7,360,000 to
repurchase the shares. After completing the transaction, the combined ownership
of Mr. Prosser, members of his family and Mr. Fjelstad was reduced from
approximately 52% to 45%. As a result of the transaction, RTW has approximately
10,894,000 shares outstanding.

     In connection with the repurchase, Mr. Prosser retired from the Company,
resigned as Chairman and was paid $225,000 as a termination benefit. He is
expected to remain as a member of the Company's Board of Directors.

     Additionally, at closing, each member of the Prosser Selling Group entered
into a two year standstill and voting agreement under which each agreed, among
other things, not to acquire additional securities of RTW and not to initiate or
support certain initiatives designed to effect fundamental changes in RTW policy
or structure.

     The Company borrowed $8.0 million under to a term loan agreement to fund
the repurchase. The term loan is repayable over a five-year period.

     Carl Lehmann, President and Chief Executive Officer said, "Among the
alternatives investigated and reviewed by our Board, this transaction best
serves the interests of our shareholders and the Prosser Selling Group. It
allows RTW to continue pursuing its business plan as an independent company and,
based on projections for 2000, should be mildly accretive on an income per share
basis during the year. The Prosser Selling Group worked closely with RTW to
complete this transaction, and we look forward to their continuing as major
shareholders in RTW. The consummation of this transaction should eliminate a
level of uncertainty for our shareholders, our employees and our business
partners and allow us to focus even more intensely on building value in RTW."

     RTW, Inc. based in Minneapolis, Minnesota, manages disability products and
services for employers. Primary among its disability products and services is a
workers' compensation management system designed to lower employers' costs and
return injured employees to work as soon as possible. RTW, Inc. combines its
proprietary management systems, the RTW SOLUTION and ID 15, with insurance
products underwritten by an RTW subsidiary, American Compensation Insurance
Company. RTW offers its services to employers 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. These forward-looking statements involve known
and unknown risks, uncertainties and other factors that may cause the actual
results, performance or achievements of the Company to be materially different
from any future results, performance or achievements expressed or implied by the
forward-looking statements. Such factors include, among other things, (i)
general economic and business conditions; (ii) interest rate changes; (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 effective manner; (vii) the number of
new and renewal policy applications submitted by the Company's agents; (viii)
the Company's ability to successfully introduce new products and services; (ix)
the ability of the Company and its third party providers, agents and reinsurers
to adequately address year 2000 issues; and (x) other factors as noted in the
Company's filings with the SEC. This discussion of uncertainties is by no means
exhaustive but is designed to highlight important factors that may impact the
Company's future performance.