Hallmark Financial Services, Inc. Announces A.M. Best Ratings Upgrades

DALLAS, April 18 -- Hallmark Financial Services, Inc. (AMEX:HAF.EC) , announced today that A.M. Best has upgraded the financial strength ratings of its two insurance subsidiaries. American Hallmark Insurance Company of Texas was upgraded from "C+" to "B-" and Phoenix Indemnity Insurance Company was upgraded from "D" to "B-".

Hallmark Financial Services, Inc. engages primarily in sale of property and casualty insurance products. The Company's business involves marketing, underwriting and premium financing of non-standard personal automobile insurance primarily in Texas, Arizona and New Mexico, marketing of commercial insurance in Texas, New Mexico, Idaho, Oregon and Washington, third party claims administration, and other insurance related services. The Company is headquartered in Dallas, Texas and its common stock is listed on the American Stock Exchange under the symbol "HAF.EC".

Forward-looking statements in this Release are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Act of 1995. Investors are cautioned that actual results may differ substantially from such forward-looking statements. Forward-looking statements involve risks and uncertainties including, but not limited to, continued acceptance of the Company's products and services in the marketplace, competitive factors, interest rate trends, the availability of financing, underwriting loss experience and other risks detailed from time to time in the Company's periodic report filings with the Securities and Exchange Commission.

                 For further information, please contact:
           Timothy A. Bienek, President and COO at 972.404.1637
                           www.hallmarkgrp.com