Hallmark Announces Management Succession Plans

    DALLAS, March 26 Hallmark Financial Services, Inc.
(Amex: HAF.EC) (HFS) today announced the planned retirement of Ramon D.
Phillips, its Chairman, Chief Executive Officer and President since 1989.  At
Mr. Phillips' recommendation, Ms. Linda H. Sleeper was elected President and
CEO of HFS during the past year after gradually assuming responsibility for
day-to-day management during the last several years.  Mr. Phillips will remain
as Chairman of the Board for an indeterminate period to assist with strategic
initiatives.  This transfer of management responsibilities was requested by
Mr. Phillips in order to allow more time to spend with his family and working
on special projects, both commercial and charitable.
    "Linda Sleeper has been managing daily operations of the Company for some
time, and is well prepared to assume full leadership responsibilities of the
Company," stated Mr. Phillips.  "I am proud of the management team developed
over the past years and feel confident they are positioned, under the
leadership of Ms. Sleeper and the Board, to move the Company forward," added
Mr. Phillips.
    Ms. Sleeper has been with the Company since May 1993 and has served as
Executive Vice President and Chief Operating Officer of HFS and as President
of the Company's subsidiaries (collectively known as the American Hallmark
Insurance Group) since 1994.  Ms. Sleeper has over twenty years of executive
management experience and is a certified public accountant.
    Hallmark Financial Services, Inc. engages primarily in the marketing and
financing of non-standard automobile insurance in the State of Texas.  Other
activities include fee-based claims handling as well as administrative and
financial services for unrelated parties.  The Company is headquartered in
Dallas, Texas and its common stock is listed on the American Stock Exchange
under the symbol "HAF.EC".
    Forward-looking statements in this Release are made pursuant to the "safe
harbor" provisions of the Private Securities Litigation Act of 1995.
Investors are cautioned that actual results may differ substantially from such
forward-looking statements.  Forward-looking statements involve risks and
uncertainties including, but not limited to, continued acceptance of the
Company's products and services in the marketplace, competitive factors,
interest rate trends, the availability of financing, underwriting loss
experience and other risks detailed from time to time in the Company's
periodic report filings with the Securities and Exchange Commission.

     For further information, please contact:
     Ramon D. Phillips, Chairman at 972-404-1637
     http://www.hallmarkgrp.com