21st Century Holding Company Projecting Record 2nd Quarter Profits

    PLANTATION, Fla.--May 31, 2002--21st Century Holding Company , a vertically integrated financial services holding company, announced today that it is raising its 2nd quarter profit estimates and projecting their second consecutive record quarter.
    President and CEO, Edward J. Lawson, announced that he is raising the guidance for 21st Century Holding Company's 2nd fiscal quarter ending June 30, 2002 from $.27 per share to $.34 per share, which will result in their 2nd record quarter in a row. For calendar year 2002, Mr. Lawson is raising his guidance from $1.20 to $1.30 per share. Guidance for calendar year 2003 is also being raised to $1.70 per share from $1.60 per share. The 2nd quarter earnings will be released by the end of the third week in July. The Company will hold a conference call to discuss their results and address any questions.
    Mr. Lawson said, "I am again making these changes to my guidance due to the significant and accelerating strength in top and bottom line growth in just about every part of the company. I couldn't be more pleased with the revenue and profit growth we're experiencing and believe it will continue to accelerate as time goes on."
    21st Century Holding Company manages its insurance underwriting, distribution and claims process through its subsidiaries.
    - The Company's wholly owned subsidiaries, Federated National Insurance Company and American Vehicle Insurance Company, underwrite standard and non-standard personal automobile insurance in the state of Florida. Federated National also has authority to underwrite flood insurance, mobile home insurance, and homeowners property and casualty insurance in the state of Florida.
    - The Company's wholly owned managing general agent, Assurance Managing General Agents, Inc., has underwriting authority for Federated National, American Vehicle, and third-party insurance companies.
    - The Company's wholly owned claims adjusting company, Superior Adjusting, Inc., processes claims made by the insureds of Federated National, American Vehicle, and third party insurance companies which contract with Superior.
    - Federated Premium Finance, Inc., another wholly owned subsidiary, offers premium financing to insureds of Federated National and American Vehicle, as well as to third party insureds.
    - 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. Future guidance does not anticipate any terrorist, severe weather or catastrophic events. 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").