Miami, Florida – August 7, 2006: Wayne Fletcher, President of Northern Capital Insurance Company announced that the company would enter the homeowners’ insurance marketplace in Florida and begin writing policies on or about August 15, 2006.

“Northern Capital Insurance Company is a Florida based corporation and was formed in response to the growing homeowners’ insurance crisis in Florida, particularly in the southern third of the state. Many insurance companies are withdrawing from the state and those remaining are limiting their aggregate liability by non-renewing policies,” Mr. Fletcher stated.

“Mr. Fletcher further added:

We believe there are several factors that will be the keys to our success:

--Initially, our company’s strength and financial stability will enable us to protect a few thousand Florida homeowners and their property. As we build surplus we will be able to provide several thousand homeowners with insurance for years to come.

--We believe homeowners insurance is still a relationship business and we will focus on building relationships with our agency partners who represent the policyholder.

--Our management team has years of experience working in the insurance industry and possesses the skills required to deliver a quality product and the expertise to maintain a lasting organization.

--We will utilize state-of-the-art technology; follow the highest standards of conduct and provide fair and timely claims handling to deliver the best customer service in the state of Florida.”

Fletcher concludes by explaining, “Northern Capital will initially focus its efforts on insuring homes in about 10 counties in the southern part of Florida and as the company grows, it will expand into other regions of the state.”

Northern Capital Insurance Company has put together a comprehensive reinsurance program comprised of U.S. and Lloyd’s of London reinsurers in addition to the protection provided by the Florida Hurricane Catastrophe Fund. All of the reinsurers backing Northern Capital Insurance Company have a financial stability rating from A.M. BEST of “A” or better.