Direct General Corporation Announces Quarterly Dividend

NASHVILLE, Tenn.--May 1, 20060, 2006--Direct General Corporation today announced that the Board of Directors declared a quarterly dividend of $0.04 per share of common stock to shareholders of record as of June 1, 2006 with payment to be made on or before June 15, 2006.

GENERAL INFORMATION

Direct General Corporation, headquartered in Nashville, Tennessee, is a financial services holding company whose principal operating subsidiaries provide non-standard personal automobile insurance, term life insurance, premium finance and other consumer products and services primarily through neighborhood sales offices staffed predominantly by its own employee-agents. Direct General's current operations are concentrated primarily in the southeastern part of the United States, including Texas. Additional information about Direct General can be found online at http://www.direct-general.com.