FOR:       DCAP Group, Inc. - NASDAQ: DCAP
CONTACT:   Barry B. Goldstein
           (516) 374-7600


              DCAP Third Quarter Operating Income Increases Tenfold
                               as Revenues Double
                      Tenth Consecutive Profitable Quarter

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Hewlett,  NY--November 15, 2004 - DCAP Group, Inc.  (NASDAQ:  DCAP), the largest
chain of  independent  storefront  insurance  agencies in the  Northeast,  today
reported its results for the third quarter of fiscal 2004.

Results of Operations
Company highlights for the third quarter include:

o Revenue  increase of 100%- $3.95  million  versus  $1.96  million in the third
quarter of 2003,
o Operating income of $552,000 versus $47,000 in the third quarter of 2003,
o Earnings  per common  share  (basic) of $.15 vs. $.12 in the third  quarter of
2003 (for the 2003 period, excluding the income tax benefit of $189,000 and gain
on sale of book of business of $89,000,  earnings per common share (basic) would
have been $.01).

"We continue to meet the financial benchmarks we set at the start of 2004," said
Barry B. Goldstein, Chairman and Chief Executive Officer. "Our revenue increases
continue to translate into substantive bottom line gains. We view ourselves as a
premier distribution vehicle for our carrier partners,  and look forward to more
profitable relationships for our company-owned as well as franchised storefronts
in 2005."

"With our stock now trading on NASDAQ and our  consistently  strong results,  we
have increased our focus on formulating our expansion plans for 2005 and beyond"
added  Jack  Willis,   Chief  Operating  Officer.   "Our  goal  is  to  use  our
infrastructure and operating  efficiencies to support accelerated growth for the
foreseeable future. "

"We  anticipate  $1.4-$1.6  million  in net  income  for 2004.  This  equates to
earnings  per  common  share  (basic)  of  from  $.56 to $.64  for  2004",  said
Goldstein.




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About DCAP Group:

DCAP Group,  Inc.  is the  largest  chain of  independent  storefront  insurance
agencies in the  Northeast.  DCAP is focused on  building  the  business  into a
community-based,  vertically



integrated  one-stop  financial  services  center.  The Company  offers  several
services to its retail customers at the most  competitive  rates with a complete
portfolio of insurance  and related  products and  services,  including  premium
financing. DCAP currently provides car, motorcycle, homeowner, business and life
insurance products from a number of major carriers.  The Company also offers tax
return  preparation  services.  The  Company's  storefront  agencies are located
throughout the New York City  metropolitan  area and upstate New York as well as
in New Jersey and  Pennsylvania.  More information is available at the Company's
website at www.dcapgroup.com.

Forward Looking Statements:  Statements in this press release, other than purely
historical  information,  including  those  contained in the  comments  above by
management and the comments  regarding the Company's future plans and objectives
and expected  operating  results,  and statements of the assumptions  underlying
such statements,  constitute  forward-looking  statements  within the meaning of
Section  21E  of  the  Securities  Exchange  Act of  1934.  The  forward-looking
statements  contained  herein are based on certain  assumptions  that may not be
correct. They are subject to all of the risks and uncertainties  incident to the
Company's business that are described in the reports and statements filed by the
Company with the Securities and Exchange  Commission,  including  (among others)
those  listed in the  Company's  Form 10-KSB and the Form 10-QSB for the quarter
ended September 30, 2004.