AssuranceAmerica Corporation Announces Acquisition

ATLANTA--Jan. 1, 20067, 2006--Atlanta based AssuranceAmerica Corporation (OCT BB: ASAM.OB) today announced it has acquired the assets of Tampa No-Fault Insurance Agency, Inc. ("TFN"), a retail insurance agency in Tampa, Florida, producing over $3.0 million annual premium volume with emphasis on sales of non-standard auto insurance products.

In announcing the acquisition, Lawrence (Bud) Stumbaugh, President and CEO of AssuranceAmerica said, "This acquisition meets our objectives of acquiring agencies that are well established in their market, focused on our niche non-standard auto insurance business, do not overlap with our locations and allows us to add AssuranceAmerica Insurance Company's products into their existing product offerings. We expect to see increasing revenues and efficiencies as a result of this new addition to our agency group."

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.

This press release includes statements that may constitute "forward-looking" statements. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements, as discussed in the Company's filings with the U.S. Securities Exchange Commission (SEC).