ARTHUR J. GALLAGHER & CO. ACQUIRES WM. W. GEORGE & ASSOCIATES, INC.

Itasca, IL, August 15, 2008 - - Arthur J. Gallagher & Co. today announced the acquisition of Wm. W. George & Associates, Inc. of Dallas, Texas. Terms of the transaction were not disclosed.

Established in 1972, Wm. W. George & Associates is a retail insurance broker providing commercial property/casualty, workers' compensation and risk management services as well as a wide range of employee benefit consulting/administration and brokerage services to their clients in the United States. They specialize in the construction, real estate, financial institutions, legal, not-for-profit, and temporary staffing industries with a focus on mid to large sized accounts. William George, Warren Petersen and their associates will continue to operate in their Dallas location under the direction of Michael Henthorn, South Central Regional Manager of Gallagher's retail property/casualty brokerage operation.

"Wm. W. George & Associates has grown over the last 35 years because they successfully developed a culture of quality service and dedication to their clients," said J. Patrick Gallagher, Jr., Chairman, President and CEO. "These attributes blend well with our own culture. Their seasoned management team and their specialized business expertise will also be outstanding additions to our South Central Region. We are extremely pleased to welcome Bill, Warren and their associates to our growing Gallagher family of professionals."

Arthur J. Gallagher & Co., an international insurance brokerage and risk management services firm, is headquartered in Itasca, Illinois, has operations in 14 countries and does business in more than 100 countries around the world through a network of correspondent brokers and consultants. Gallagher is traded on the New York Stock Exchange under the symbol AJG.