Gerald Fels, CEO & President of The Commerce Group, Inc., To Speak on September 7, 2006 at the Keefe, Bruyette & Woods, Inc. Insurance Conference in New York City

The Commerce Group, Inc. (NYSE:CGI) today announced that Gerald Fels, Chief Executive Officer and President, will make a presentation at the Keefe, Bruyette & Woods, Inc. (KBW) 2006 Insurance Conference in New York City on Thursday, September 7, 2006, at 2:45 p.m. (EST).

The presentation can be heard live over the internet by following the general information on accessing the webcast at KBW’s website: http://www.kbw.com. An archived version of the presentation is expected to be available at the same address for 60 days. A copy of the written portion of the presentation will also be available live on the Company’s website at: www.commerceinsurance.com, under the “Investors” section.

It should be noted that Mr. Fels’ presentation and remarks might contain certain statements that may be considered forward-looking statements. Commerce Group refers you to its 2005 Form 10-K and June 30, 2006 Form 10-Q for a description of the Company’s business environment and important other factors that may affect its business, including its language regarding forward-looking statements.

Commerce Group is headquartered in Webster, Massachusetts. Property and casualty insurance subsidiaries include The Commerce Insurance Company and Citation Insurance Company in Massachusetts, Commerce West Insurance Company in California and American Commerce Insurance Company in Ohio. Through its subsidiaries’ combined insurance activities, the Company is ranked as the 19th largest personal automobile insurance group in the country by A. M. Best, based on 2005 direct written premium information. The Company and its insurance subsidiaries are rated A+ (Superior) by A.M. Best.