21st Century Holding Company Reports Second Quarter Results

    PLANTATION, Fla., Aug. 14 21st Century Holding Company , a vertically integrated financial
service holding company, reported a net loss of $1,489,671 or $.47 per average
common share for its second quarter ended June 30, 2001, compared to net
income of $334,769 or $.10 per average common share for its second quarter
last year.  For the six months ended June 30, 2001, the Company reported net
loss of $990,925 or $.31 per average common share versus net income of
$875,998 or $.26 per average common share in the same period in 2000.
    During the quarter ended June 30, 2001, the Company recorded a one-time
write-down of equity securities of $2,430,342 ($1,515,804 after income taxes)
due to unfavorable market conditions.  Excluding this one-time write-down, the
Company would have reported a net income of $26,133 or $0.01 per share for the
three months ended June 30, 2001 and net income of $524,879 or $0.16 per share
for the six months ended June 30, 2001.
    Revenues for the three months ended June 30, 2001 were $8,163,030 versus
$10,376,338 for the same period in 2000.  Revenues for the six months ended
June 30, 2001 were $17,711,180, compared to $19,406,469 for the same period in
2000.
    21st Century Holding Company manages its insurance underwriting,
distribution and claims process through its subsidiaries.
    * The Company underwrites standard and non-standard personal automobile
insurance and mobile home, property and casualty insurance in the state of
Florida through its subsidiary, Federated National Insurance Company.
    * The Company has underwriting authority for third-party insurance
companies, which it represents through a wholly owned managing general agent,
Assurance Managing General Agents, Inc.
    * Claims made by Federated National's insureds are internally processed by
a wholly owned claims adjusting company, Superior Adjusting, Inc.
    * The Company offers premium financing to its own and third party insureds
through a wholly owned subsidiary, Federated Premium Finance, Inc.
    * Express Tax Service, Inc., an 80% owned subsidiary, licenses its brand
name and its software to retail tax preparers and over the Internet.
    * The Company offers other ancillary services including electronic income
tax filing, tax preparation and tag & title transfer services through
Federated Agency Group, Inc., also a wholly owned subsidiary.
    * Fed USA, Inc., a wholly owned franchiser company, offers single and
master franchise opportunities to individuals to own and operate their own
business with the support of two brands, Fed USA Insurance and Financial
Services and Express Tax.

    21st Century Holding Company (the "Company") cautions readers that certain
important factors may affect the Company's actual results and could cause such
results to differ materially from any forward-looking statements which may be
deemed to have been made in this release or which are otherwise made by or on
behalf of the Company.  For this purpose, any statements contained in this
report that are not statements of historical fact may be deemed to be forward-
looking statements.  Without limiting the generality of the foregoing, words
such as "may," "will," "expect," "believe," "anticipate," "intend," "could,"
"would," "estimate," or "continue" or the negative other variations thereof or
comparable terminology are intended to identify forward-looking statements.
Factors which may affect the Company's results include, but are not limited
to, risks related to the nature of the Company's business; the limit on the
Company's ability to expand due to a consent order entered into with the
Florida Department of Insurance; reinsurance; dependence on investment income;
the adequacy of its liability for losses and LAE regulation; insurance agents;
claims experience; limited experience in the insurance industry; competition;
ratings by industry services; catastrophe losses; reliance on key personnel
and other risks discussed elsewhere in this Report and in the Company's other
filings with the Securities and Exchange Commission (the "Commission").

    21st CENTURY HOLDING COMPANY
    Financial Highlights (Unaudited)

                    For the Three Months Ended,    For the Six Months Ended,
                         6/30/01       6/30/00      6/30/01         6/30/00

    Total Revenue       $8,163,030   $10,376,338  $17,711,180    19,406,469
    Net Realized
     Investment
     Gaines (Losses)   (1,809,009)      (49,326)  (1,883,042)       412,847
    Pretax Income
     (Loss)            (2,422,964)       483,717  (1,656,875)     1,304,969
    Income Tax
     Expense
    (Benefit)            (933,293)       148,948    (665,950)       428,971
    Net Income (Loss)  (1,489,671)       334,769    (990,925)       875,998
    Net Income (Loss)
     Per Share              (0.47)          0.10       (0.31)          0.26
    Weighted Average
     Shares Outstanding  3,163,801     3,405,667    3,233,563     3,395,445

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