AUSTIN, Texas, June 5, 2003 (PRIMEZONE) -- American Physicians Service Group, Inc. ("APS") (Nasdaq:AMPH) today announced that it had acquired an interest in Financial Industries Corporation ("FIC") (Nasdaq:FNIN), a company that markets and underwrites individual life insurance and annuity products. In a transaction valued at approximately $5.7 million, APS acquired approximately 385,000 shares of the outstanding common stock along with a stock option to purchase 323,000 additional shares. The option is exercisable upon FIC achieving certain performance thresholds. Concurrent with the investment, Mr. Ken Shifrin, APS Chairman of the Board, will be appointed to the board of FIC.
Mr. Shifrin stated, "We are excited about our association with FIC and its employees. We have been involved with FIC's efforts for over nine months on a major strategic initiative directed at developing new insurance relationships and dramatically growing its premium revenues. We were attracted to this opportunity by this initiative and by FIC's rededication to implementing cost reductions and improving corporate governance. We believe that these actions will have a significant positive impact on growth in the company and on earnings. Because of our contribution to this new growth initiative, we have been granted an option to purchase shares based on achievement of the initiative's objectives."
Dr. Gene Payne, FIC Chief Executive Officer, said, "We welcome APS as an investor and Ken Shifrin as a director. As we move FIC into a new era, we believe the knowledge and industry experience we gain through this association will prove to be beneficial."
About Financial Industries Corporation
FIC, through its various subsidiaries, owns real estate, an actuarial consulting firm, and markets and underwrites life insurance and annuity products.
About American Physicians Service Group, Inc.
APS is a management and financial services firm with subsidiaries that provide medical malpractice insurance services for doctors and brokerage and investment services to institutions and high net worth individuals. The Company is headquartered in Austin, Texas and maintains offices in Dallas and Houston.
This press release includes forward-looking statements related to the Company that involve risks and uncertainties that could cause actual results to differ materially. These forward-looking statements are made in reliance on the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. For further information about these factors that could affect the Company's future results, please see the Company's recent filings with the Securities and Exchange Commission. Prospective investors are cautioned that forward-looking statements are not guarantees of future performance. Actual results may differ materially from management expectations. Copies of the filings are available upon request from the Company's investor relations department.
For further information, visit APS' website at www.amph.com or contact:
Mr. Kenneth Shifrin, Chairman of the Board (or) Mr. W. H. Hayes, Sr. Vice President - Finance American Physicians Service Group, Inc. 1301 Capital of Texas Highway, C-300 Austin, Texas 78746 (512) 328-0888