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                Frontier Adjusters: Reports Fiscal 3rd Quarter


Released by:
Strategic IR
800 Third Avenue, Suite 3700
New York, NY 10022
(212) 754-6565 


For Immediate Release:



FRONTIER ADJUSTERS REPORTS RESULTS FOR 
THIRD QUARTER OF FISCAL 2000


PHOENIX, Arizona, May 10, 2000 - Frontier Adjusters of America, Inc. (AMEX:
FAJ), a nationwide franchisor and licensor of claims adjusters, reported an
increase in net income and a slight decrease in revenue for the third
quarter and first nine months of its 2000 fiscal year.  

For the three months ended March 31, 2000, revenue was $1,482,000, down
$90,000, or 5.7%, from $1,572,000 in the same period of the prior year.  
Net income increased $96,000, or 46.2%, to $304,000 this quarter compared
to $208,000 in the same quarter of the prior fiscal year.  Earnings per
share decreased this quarter to $.03 per share from $.05 per share in the
same quarter of the prior fiscal year due to an increase in the number of
outstanding shares.  Gross billings of franchisees and licensees increased
$237,000, or 2.2%, to $11,140,000 in the third quarter of 2000 from
$10,903,000 in the same period of the previous year.

For the nine months ended March 31, 2000, revenue was $4,725,000, down
slightly by $5,000 from $4,730,000 in the same period of the prior year.  
Net Income increased $227,000, or 35.2%, to $871,000 this nine months
compared to $644,000 in the same period of the prior fiscal year.  Earnings
per share decreased this period to $.10 per share from $.14 per share in
the same period of the prior fiscal year due to an increase in the number
of outstanding shares.  For the nine months, gross billings of franchisees
and licensees increased $871,000, or 2.6%, to $34,195,000 compared to
$33,324,000 in the prior year.

The largest item impacting net income during fiscal 2000 was a $427,000
decrease in compensation and fringe benefits from $2,109,000 in the nine
months ended March 31, 1999 to $1,682,000 this year.  These expenses
decreased significantly as a result of the retirements of William J. Rocke,
former CEO and Chairman of the Board, and Jean E. Ryberg, former President,
on June 30, 1999.  

Other significant items impacting net income this fiscal year are decreases
of $106,000 and $90,000 legal and advertising expenses, respectively, as
well as increases of $270,000 and $75,000 in service fees and bad debt,
respectively.  Legal fees decreased significantly this fiscal year due to
the increased need for legal services during the first nine months of last
fiscal year in preparation of United Financial Adjusting Company's
("UFAC"), the Company's current majority shareholder, purchase of the
Company's stock in April of 1999.  In connection with that purchase, the
Company entered into an agreement with UFAC whereby the Company pays a
monthly fee of $25,000 for management, marketing, technology, human
resources, and accounting and reporting services.  For the nine months
ended March 31, 2000, the Company incurred $225,000 in these fees.  The
Company did not incur fees related to this arrangement in the same period
of the prior fiscal year.  The Company also pays UFAC for services
performed beyond the scope of the service agreement.  For the nine months
ended March 31, 2000, the Company incurred an additional $45,000 for
computer consulting services provided by UFAC, for a total of $270,000 in
service fees.  Advertising expenses decreased $90,000 this fiscal year as
compared to the prior year as a portion of the monthly service fee paid to
UFAC includes marketing resources.  Therefore, the Company has ceased
incurring some of the costs that were previously paid to external parties.  

Furthermore, a portion of this reduction is due to the non-renewal of the
Company's share in a luxury suite at a sporting facility.  Provision for
doubtful accounts increased primarily due to the aging of larger balance
loans to franchisees or licensees.

Frontier Adjusters of America, Inc. licenses and franchises independent
claims adjusters throughout North America, with more than 680 advertised
locations in 50 states, the District of Columbia, and Canada.  The Company
also owns and operates independent insurance adjusting businesses in
Arizona and Nevada.

From time to time, Frontier makes forward-looking statements in its public
disclosures.  This press release includes statements with respect to future
operations and expenditures of the Company that may constitute
forward-looking statements made pursuant to the safe harbor provisions of
the Private Securities Litigation Reform Act of 1995.  Important risks and
uncertainties that could cause the Company's results to differ materially
from those contained in such forward-looking statements are contained in
the Company's filings with the Securities and Exchange Commission,
including Frontier's Annual Report on Form 10-K for the year ended June 30,
1999.


FRONTIER ADJUSTERS OF AMERICA, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)


                            Three Months Ended        Nine Months Ended  
                           3/31/00      3/31/99      3/31/00     3/31/99 
    
Gross Billings 
  of Licensees          $11,140,000  $10,903,000  $34,195,000  $33,324,000
Revenue                   1,482,098    1,572,172    4,725,154    4,729,654
Income from Operations      467,744      312,573    1,310,536      968,317
Income before Taxes         509,423      347,951    1,438,609    1,067,303
Net Income                  304,497      208,216      870,897      643,631
Net Income per Common Share:
     Basic & Diluted           $.03         $.05         $.10         $.14
Weighted Average Shares 
  Outstanding:
     Basic                8,957,564    4,605,358    8,957,561    4,605,358
     Diluted              8,957,564    4,605,784    8,957,561    4,606,776

For more information at Frontier, contact:

Laurel A.  Park, Controller and Assistant Secretary
(602) 264-1061
     

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