21St Century Holding Company Reaffirms Guidance and Comments On Ratings.

PLANTATION, Fla. -- 21st Century Holding Company (Nasdaq:TCHC) reaffirms its guidance and comments on A.M. Best ratings.

Edward J. (Ted) Lawson, President and Chairman of the Board, said, "The Company has requested that A.M. Best stop rating Federated National Insurance Company, an insurance subsidiary of the Company, and assign it an `NR' or Non Rating. This action is being taken after consultations with A.M. Best, during which A.M. Best advised the Company that in order for Federated National Insurance Company to maintain its present rating, it would be required to have a BCAR score (which is A.M. Best's primary rating system score - Best's Capital Adequacy Ratio) at 2 levels above its current financial strength rating in order for it to maintain its present rating. Federated National Insurance Company currently maintains an `A' rating with Demotech rating service, which is the other rating service which analyzes the financial strength of the Company."

Mr. Lawson continued, "American Vehicle Insurance Company, the Company's other insurance company subsidiary, which only writes general liability and auto, is also maintaining its `A' rating with Demotech rating service. American Vehicle Insurance Company is presently rated `B+' by A.M. Best. Management believes that American Vehicle Insurance Company's BCAR score would indicate an A.M. Best rating of `A-' due to its financial strength and the fact that it is profitable and writes only at a 2-to-1 surplus to writings ratio. The Company has asked A.M. Best to continue to rate American Vehicle Insurance Company, but there is no assurance that they will continue to do so or assign it what management believes is its proper rating, as their BCAR score would indicate. Management believes that in the event there is a downgrade, there will be no adverse effect upon the Company or its operations. Guidance for calendar year 2005 is hereby reaffirmed at $2.67 per share and the first quarter of 2005 continues to be forecast to be a record quarter for the Company."

About the Company

The Company, through its subsidiaries, underwrites standard and non-standard personal automobile insurance, flood insurance, general liability insurance, mobile home insurance and homeowners' property and casualty insurance in the State of Florida. The Company underwrites general liability coverage as an admitted carrier in the States of Louisiana and Texas for more than 300 classes of business, including special events, as well as homeowners' coverage in the State of Louisiana. The Company also operates as an approved (non-admitted) carrier in the States of Georgia and Kentucky offering the same general liability products. In addition, the Company has underwriting authority and processes claims for third party insurance companies. In addition to insurance services, the Company offers premium finance services to its insureds as well as insureds of certain third party insurance companies.

Safe harbor statements under the Private Securities Litigation Reform Act of 1995: Statements in this press release that are not historical fact are forward-looking statements that are subject to certain risks and uncertainties that could cause actual events and results to differ materially from those discussed herein. Without limiting the generality of the foregoing, words such as "may," "will," "expect," "believe," "anticipate," "intend," "could," "would," "estimate," or "continue" or the other negative variations thereof or comparable terminology are intended to identify forward-looking statements. The risks and uncertainties include, without limitation, uncertainties related to estimates, assumptions and projections generally; inflation and other changes in economic conditions (including changes in interest rates and financial markets); pricing competition and other initiatives by competitors; ability to obtain regulatory approval for applications to underwrite in an additional jurisdiction or for requested rate changes, and the timing thereof; legislative and regulatory developments; the outcome of litigation pending against the Company and any settlement thereof; risks related to the nature of the Company's business; dependence on investment income and the composition of the Company's investment portfolio; the adequacy of the Company's liability for loss and loss adjustment expense; insurance agents; claims experience; limited experience in the insurance industry; ratings by industry services; catastrophe losses; reliance on key personnel; weather conditions (including the severity and frequency of storms, hurricanes, tornadoes and hail); changes in driving patterns and loss trends; acts of war and terrorist activities; court decisions and trends in litigation, and health care and auto repair costs; and other matters described from time to time by the Company in releases and publications, and in periodic reports and other documents filed with the United States Securities and Exchange Commission. In addition, investors should be aware that generally accepted accounting principles prescribe when a company may reserve for particular risks, including litigation exposures. Accordingly, results for a given reporting period could be significantly affected if and when a reserve is established for a major contingency. Reported results may therefore appear to be volatile in certain accounting periods.