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Press release from Business Wire

Stewart Announces Transition of Internal Audit Function to Deloitte LLP

<p> <i>Outsourcing to global service provider will reduce company's overall costs, enhance service offerings and increase flexibility</i> </p>

Thursday, May 12, 2011

Stewart Announces Transition of Internal Audit Function to Deloitte LLP10:57 EDT Thursday, May 12, 2011 HOUSTON (Business Wire) -- Stewart Information Services Corp. (NYSE-STC) announced today its decision to outsource its internal audit function to Deloitte LLP as part of Stewart's continuing effort to provide world-class operational support, to enhance its services to its title agencies and customers, to provide flexibility and to reduce expenses. “After many months of evaluation, we selected Deloitte because of their title insurance expertise, their understanding and loyalty to our industry, and the value they place on our current audit associates,” noted Matthew W. Morris, senior executive vice president for Stewart. “Deloitte has a very highly regarded internal audit practice and can expand our capabilities around continuous monitoring, forensic audit and IT audit tools. Additionally, given their geographically dispersed resources and size, we can be more scalable, adaptable and flexible in our ongoing audit approach.” In addition, Stewart expects to reduce its overall costs by implementing a variable-cost structure, which will allow greater opportunity by tying costs to market fluctuations. This flexibility is a key benefit given changing regulations, shifting requirements for centralized accounting and IT, and opportunities to leverage more robust audit technology and tools. About Stewart Stewart Information Services Corp. (NYSE-STC) is a customer-driven, technology-enabled, strategically competitive, real estate information, title insurance and transaction management company. Stewart provides title insurance and related information services required for settlement by the real estate and mortgage industries throughout the United States and international markets. Stewart also provides post-closing lender services, automated county clerk land records, property ownership mapping, geographic information systems, property information reports, flood certificates, document preparation, background checks and expertise in tax-deferred exchanges. More information can be found at http://www.stewart.com, subscribe to the Stewart blog at http://blog.stewart.com or follow Stewart on Twitter @stewarttitleco. Forward-looking statements. Certain statements in this report are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements relate to future, not past, events and often address our expected future business and financial performance. These statements often contain words such as “expect,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “will” or other similar words. Forward-looking statements by their nature are subject to various risks and uncertainties that could cause our actual results to be materially different than those expressed in the forward-looking statements. These risks and uncertainties include, among other things, the severity and duration of current financial and economic conditions; continued weakness or further adverse changes in the level of real estate activity; changes in mortgage interest rates and availability of mortgage financing; our ability to respond to and implement technology changes, including the completion of the implementation of our enterprise systems; the impact of unanticipated title losses on the need to further strengthen our policy loss reserves; any effect of title losses on our cash flows and financial condition; the impact of our increased diligence and inspections in our agency operations; changes to the participants in the secondary mortgage market and the rate of refinancings that affect the demand for title insurance products; our ability to successfully consummate acquisitions, and our ability to successfully integrate and manage acquired businesses should opportunities arise; regulatory non-compliance, fraud or defalcations by our title insurance agencies or employees; our ability to timely and cost-effectively respond to significant industry changes and introduce new products and services; the outcome of litigation claims by large classes of claimants; the impact of changes in governmental and insurance regulations, including any future reductions in the pricing of title insurance products and services; our dependence on our operating subsidiaries and underwriters as a source of cash flow; the continued realization of expected expense savings resulting from our expense reduction steps taken since 2008; our ability to access the equity and debt financing markets when and if needed; our ability to grow our international operations; our ability to respond to the actions of our competitors; failure to comply with financial covenants contained in our debt instruments; and inability to make scheduled payments on or refinance our indebtedness. We expressly disclaim any obligation to update any forward-looking statements contained in this release to reflect events or circumstances that may arise after the date hereof, except as may be required by applicable law. Stewart Information Services Corp.Ted C. Jones, 713-625-8014Director-Investor Relationsted@stewart.comhttp://www.stewart.com