Fortune Insurance Suspending New and Renewal Business; Fortune Financial To Be Delisted From NASDAQ

    JACKSONVILLE, Fla.--May 15, 2001--Fortune Financial, Inc. announced today that its primary operating subsidiary, Fortune Insurance Company, is suspending the writing of new and renewal insurance policies effective as of the close of business on May 15, 2001 because its capital base, as required by the Florida Insurance Code, does not support the continued writing of existing levels of insurance premiums. Fortune Financial is currently evaluating financing alternatives to increase its capital base to levels required by the Florida Insurance Code. If successful, Fortune Financial anticipates that it will resume writing insurance policies through its insurance subsidiaries.
    Fortune Financial announced that it has withdrawn its appeal to remain listed on the Nasdaq National Market. On April 19, 2001, Fortune Financial received a Nasdaq Staff Determination indicating that Fortune Financial's failure to timely file its Form 10-K for the year ended December 31, 2000 with the Securities and Exchange Commission amounted to failure to comply with a requirement under Marketplace Rule 4310(c)(14) for continued listing of its securities on the Nasdaq National Market. Fortune Financial requested a hearing before a Nasdaq Listing Qualifications Panel to appeal the Staff Determination that Fortune Financial is subject to delisting, because Fortune Financial anticipated being able to cure the filing delinquency by filing its Form 10-K with the Securities and Exchange Commission prior to the Nasdaq hearing set for May 18, 2001. Fortune Financial has withdrawn its appeal because it does not anticipate being able to file its Form 10-K by that date, as it continues to work with its independent auditors. The effect of failure to timely file the Form 10-K and withdrawal of the appeal will result in the delisting of Fortune Financial's securities from the Nasdaq National Market. Until Fortune Financial files its Form 10-K, its securities will not be eligible for quotation on the Over the Counter Bulletin Board Display Service but may be eligible for quotation on the Pink Sheets Electronic Quotation Service. Fortune Financial anticipates being able to file its Form 10-K on or before June 1, 2001.
    Fortune Financial, Inc. is an insurance holding company headquartered in Jacksonville, Florida. The Company underwrites property and casualty insurance, primarily through its wholly-owned subsidiary, Fortune Insurance Company. Fortune Insurance Company is one of Florida's top providers of personal nonstandard automobile insurance products written through independent specialty agents.

Forward-Looking Statements
    Some statements made in this informational release are forward-looking within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors and prospective investors are referred to the Company's Form 10-Q for the quarter ended September 30, 2000 and its most recently filed Form 10-K for the year ended December 31, 1999 for a more detailed discussion of the factors that could cause actual results to differ. The Company disclaims any intent or obligation to update publicly these forward-looking statements, whether as a result of new information, future events or otherwise.