21st Century Holding Company's Board Raises Dividend 20%.

Business Editors

PLANTATION, Fla.--(BUSINESS WIRE)--Dec. 3, 2003

The Board of Directors of 21st Century Holding Company (Nasdaq:TCHC), a vertically integrated financial services holding company, announced today that they are raising the Company's dividend 20% from $.10 per share to $.12 per share payable on March 1, 2004 to shareholders of record as of February 2, 2004.

Chairman of the Board, Edward J. Lawson, said: "This is the sixth consecutive quarter in which the dividend has been increased. In doing so, the Board continues to exhibit its confidence in the Company's profitability and in our strategy of positioning 21st Century Holding Company as both a growth and a value company for the long term. From this point forward, the Board will evaluate potential dividend increases on an annual basis."

Mr. Lawson continued: "We want to reward shareholders who invest in our future over long periods of time. I believe that we have established a consistent track record of long term growth. The company's share price has outperformed the Dow and S&P indexes over the last five, three, and one years, respectively. We are implementing what I believe to be a solid business plan that allows for current profitability and an exciting vision for the future. We have in place a strong management team that, rather than taking exorbitant salaries, has chosen to link its future to the long term future of the Company's other shareholders. For these reasons, I believe that TCHC is well positioned for a successful future."

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. In addition, the Company has underwriting authority and process' claims for third party insurance companies. In addition to insurance services, the Company offers financial services to its insureds as well as insured of third party insurance companies. Lastly, the Company offers other ancillary services including licensing of its tax preparation software products, electronic income tax filing, tax preparation and tag and title transfer services.

The Company offers single and master franchise opportunities to individuals through its subsidiaries Fed USA Insurance/Financial Services and EXPRESSTAX(R) Franchise Corporation.

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 requested rate changes and the timing thereof; legislative and regulatory developments; the outcome of litigation pending against the Company, and 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 its liability for loss and loss adjustment expense ("LAE"); 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.