Fortune Insurance Agrees To Voluntary Rehabilitation

    JACKSONVILLE, Fla.--May 30, 2001--Fortune Financial, Inc. announced that its primary operating subsidiary, Fortune Insurance Company, has consented to the appointment of the Florida Department of Insurance as Receiver for purposes of rehabilitation. Fortune Insurance Company suspended the writing of all new and renewal insurance policies on May 15, 2001 because of its inadequate capital base. The Department of Insurance will oversee Fortune Insurance Company's operations to ensure the orderly run-off of the Company's existing policies, including the normal processing of endorsements, handling of customer service and payment of claims.
    Fortune Financial, Inc. is continuing to evaluate financing alternatives to allow resumption of its insurance business through one of its other insurance subsidiaries.
    Fortune Financial, Inc. is an insurance holding company headquartered in Jacksonville, Florida. Its property and casualty insurance subsidiaries write personal nonstandard automobile insurance and homeowner's insurance 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.