GAINSCO Announces Completion of Rights Offering

DALLAS, Aug. 23, 2005 -- GAINSCO, INC. (AMEX:GAN) announced today that it has raised approximately $14.8 million in gross proceeds from the completion of its previously announced Common Stock rights offering. The offering expired at 5:00 p.m., New York City time, on August 19, 2005.

The Company plans to accept all validly exercised subscription rights and expects to issue 19,715,052 shares of its Common Stock to subscribers. The 19,715,052 shares exercised represent 96.8% of the maximum shares available through the rights offering. There was no over-subscription privilege in connection with this offering.

The Company expects that shares purchased through the offering will be issued no later than August 24, 2005, resulting in Common Stock outstanding for GAINSCO, INC. of 80,800,012 shares.

GAINSCO, INC. is a Dallas, Texas-based holding company. The Company's nonstandard personal automobile insurance products are distributed through retail agents in Arizona, California, Florida, Nevada and Texas. Its insurance company subsidiaries are General Agents Insurance Company of America, Inc. and MGA Insurance Company, Inc.

Statements made in this release that are not historical facts are forward- looking statements. Investors are cautioned that important factors, representing certain known or unknown risks and uncertainties, could cause actual results to differ materially from those contained in the forward- looking statements, and investors should not place undue reliance on such statements. Please refer to the Company's recent SEC filings, including the Quarterly Report on Form 10-Q for the quarter ended June 30, 2005, the Current Report on Form 8-K filed on May 13, 2005, and the Annual Report on Form 10-K for the year ended December 31, 2004, for further information regarding factors that could affect the Company's results. A forward-looking statement is relevant only as of the date the statement is made and the Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances arising after the date on which the statement was made.