21st Century Holding Company Raises 3rd Quarter Profit Estimates

    PLANTATION, Fla.--Sept. 25, 2002--21st Century Holding Company , a vertically integrated financial services holding company, announced today that it is raising its 3rd quarter profit estimates.
    President & CEO of 21st Century, Edward J. Lawson, announced that he is raising the guidance for the Company's 3rd fiscal quarter ending September 30, 2002 from $.40 per share to $.50 per share, which will be reported at the end of October. This change will give the Company earnings of $1.25 per share for calendar year 2002. Guidance for calendar year 2003 is being raised from $1.80 per share to a range of $1.85 to $2 per share.
    Mr. Lawson said, "We're very pleased with the revenue and profit growth we're experiencing and believe it will continue to accelerate. I will continue to make changes to my guidance based on the Company's performance to keep our shareholders and the investment community informed."
    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
    tax preparation software products to retail tax preparers
    nationwide.

    - EXPRESSTAX(R) Franchise Corporation, a wholly owned franchiser
    subsidiary of Express Tax Service, Inc., offers franchise
    opportunities to individuals to own and operate their own
    business under the name and support of EXPRESSTAX(R).

    - 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 under the name and support of Fed USA
    Insurance / Financial Services.

    Safe Harbor statement under the Private Securities litigation Reform Act of 1995: Statements in this press release that are not historical fact are forward-looking statements that are subject to certain risks and uncertainties that could cause actual events and results to differ materially from those discussed herein. 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. The risks and uncertainties include, without limitation, uncertainties related to estimates, assumptions and projections generally; inflation and other changes in economic conditions (including changes in interest rates and financial markets); pricing competition and other initiatives by competitors; ability to obtain regulatory approval for requested rate changes and the timing thereof; legislative and regulatory developments; the outcome of litigation pending against the Company; risks related to the nature of the Company's business; dependence on investment income and the composition of the Company's investment portfolio; the adequacy of its liability for loss and loss adjustment expense ("LAE"); insurance agents; claims experience; limited experience in the insurance industry; ratings by industry services; catastrophe losses; reliance on key personnel; weather conditions (including the severity and frequency of storms, hurricanes, tornadoes and hail); changes in driving patterns and loss trends; acts of war and terrorist activities; court decisions and trends in litigation and health care and auto repair costs; and other matters described from time to time by the Company in releases and publications, and in periodic reports and other documents filed with the United States Securities and Exchange Commission. In addition, investors should be aware that generally accepted accounting principles prescribe when a company may reserve for particular risks, including litigation exposures. Accordingly results for a given reporting period could be significantly affected if and when a reserve is established for a major contingency. Reported results may therefore appear to be volatile in certain accounting periods.