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AssuranceAmerica Corporation Announces Writing Its First Auto Insurance Policies in Alabama and First Use of Credit Scoring in Pricing Risks

ATLANTA--June 20, 2005--Atlanta based ASSURANCEAMERICA CORPORATION (OTC BB: ASAM.OB), announced that today it wrote its first auto insurance policies in Alabama. This makes the fourth state in which the corporations' carrier or MGA sells its automobile insurance coverages, and the first time it has employed credit scoring as an additional factor in determining prices.

In announcing expansion into Alabama, Lawrence (Bud) Stumbaugh, President and CEO of AssuranceAmerica Corporation said, "Having grown up in Selma from one year old until I left for college, I'm exceptionally thrilled about entering my home state to do business with those needing another choice for auto insurance. Our company is also excited that for the first time we will use a credit scoring process that we believe will enable us to more precisely match price with risk. Very few companies our size have invested in and embraced this powerful rating tool that helps determine a driver's propensity to have or avoid accidents. It will be one of our means to save money for those who are less likely to incur accidents. We are pleased to now have a product developed that is being sold by the independent agents in Alabama that we have appointed for that purpose."

AssuranceAmerica focuses on the specialty automobile insurance marketplace, primarily in Florida, Georgia, Alabama and South Carolina. Its principal operating subsidiaries are TrustWay Insurance Agencies, which sells personal automobile insurance policies through its 32 retail agencies, AssuranceAmerica Managing General Agency, and AssuranceAmerica Insurance Company.