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Atlantic American Corp Subsidiary Forms Joint Venture With AAA

15 September 1998

Atlantic American Corporation Subsidiary Forms Joint Venture With AAA Carolinas

    ATLANTA, Sept. 14 -- Atlantic American Corporation
today announced that its wholly owned subsidiary, American
Southern Insurance Company, has formed a joint venture with AAA Carolinas of
Charlotte, North Carolina to market personal automobile insurance to the
members of the automobile club.  The joint venture is to be named American
Auto Club Insurance Agency, LLC and will be owned 50/50 by both parties.
    AAA Carolinas is a AAA affiliate operating in North and South Carolina
with almost one million members.  American Southern is a property and casualty
insurance company operating in the Southeast and Midwest.  The joint venture
will market automobile coverage to Motor Club members and American Southern
Insurance Company will underwrite the policies.  It is anticipated that
operation will commence prior to year-end 1998.
    Mr. Scott Thompson, president of American Southern, stated, "We are
delighted to be establishing a relationship with the Carolina Motor Club. This
venture should offer us the opportunity to provide targeted marketing and a
significant membership benefit to the members of this automobile club."
    Management of Atlantic American Corporation noted that it expects to see
modest financial benefits during 1998 with more significant improvements
through 1999.
    Note regarding Private Securities Litigation Reform Act: Except for
historical information contained herein, this press release contains forward-
looking statements that involve a number of risks and uncertainties.  Actual
results could differ materially from those indicated by such forward-looking
statements due to a number of factors and risks detailed from time to time in
statements and reports that Atlantic American Corporation has filed with the
Securities and Exchange Commission.
    Atlantic American is an insurance holding company involved in specialty
markets of the life, health, property and casualty insurance industries.  Its
principal subsidiaries include American Southern Insurance Company, American
Safety Insurance Company, Bankers Fidelity Life Insurance Company, Georgia
Casualty & Surety Company and Self-Insurance Administrators, Inc.