21st Century Holding Company Liquidates Technology Portfolio

PLANTATION, Fla., Aug. 16 21st Century Holding Company , a vertically integrated financial
service holding company, announced today that the Company has sold its equity
portfolio. During the quarter ended June 30, 2001, the Company recorded a
write-down of equity securities in its portfolio totaling $2.4 million or
$1.5 million after income tax. This portfolio consisted of technology
companies.
Edward J. Lawson, President and Chief Executive Officer, commented, "Like
other investors in the technology area, we were hurt by poor performance of
this sector this year. In hindsight, we realize that even though we still
believe in the long-term merits of this sector, the risk of such a
concentrated equity exposure is not advisable for an insurance company of our
size and capital position. We therefore have liquidated this portfolio and
will invest the proceeds more conservatively in investment grade bonds."

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
filings with the Securities and Exchange Commission.

Contact:
Edward J. Lawson
President and CEO
21st Century Holding Company
(954) 581-9993

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