21st Century Holding Company Reports First Quarter Earnings of $0.11 Per Share.

LAUDERDALE LAKES, Fla. -- 21st Century Holding Company (Nasdaq:TCHC), today reported results for the quarter ended March 31, 2007 (see attached tables).

For the three months ended March 31, 2007, the Company reported net income of $842,805, or $0.11 per share on 7,958,366 average undiluted shares outstanding, as compared to net income of $6,013,312, or $0.88 per share on 6,844,859 average undiluted shares outstanding in the same three-month period last year. On a diluted share basis, the Company reported earnings of $0.10 per share, based on 8,187,310 average diluted shares outstanding, as compared to $0.83 per share on 7,238,311 average diluted shares outstanding for the three months ended March 31, 2006.

Net premiums earned increased $0.6 million or 2.6% to $22.4 million for the three months ended March 31, 2007, as compared to $21.8 million for the same three-month period last year.

Total revenues increased $0.5 million or 1.9% to $25.6 million for the three months ended March 31, 2007, as compared to $25.1 million for the same three-month period last year.

Edward J. (Ted) Lawson, Chairman, CEO, and President, said, "While these earnings are not as robust as we had anticipated for our first quarter, our management team and I believe that the company remains strong and well positioned for future growth and profitability. However, after considering significant factors that are expected to impact our earnings for calendar year 2007, annual Company guidance is hereby amended from $4.50 per share to $2.00 to $2.50 per share."

Mr. Lawson continued, "In my opinion, the primary factors considered for lowering guidance at this time are 1) the State of Florida has politicized the entire rate making process and 2) the State's insurance carrier, Citizens Property Insurance Corporation, is now using rates that do not take into consideration the cost of private reinsurance and income tax expense while at the same time attracting new business since they are no longer considered the carrier of last resort, thereby hurting us in our ability to compete in a free enterprise system."

The Company will hold an investor conference call at 4:30 PM (ET) today, May 3, 2007. Mr. Lawson and Mr. J. Gordon Jennings III, CFO, will discuss the financial results and review the outlook for the Company. Messrs. Lawson and Jennings invite interested parties to participate in the conference call. Listeners can access the conference call by dialing toll free 888-460-6235, conference ID 7067460. Please call at least five minutes in advance to ensure that you are connected prior to the presentation. A replay of the conference call will be available for 7 days at 800-642-1687.

About the Company

The Company, through its subsidiaries, underwrites general liability insurance homeowners' property and casualty insurance, flood insurance and personal automobile insurance in the State of Florida. The Company underwrites general liability coverage as an admitted carrier in the States of Louisiana, Texas and Alabama for more than 300 classes of business, including special events. The Company also operates as an approved (non-admitted) carrier in the States of Georgia, Kentucky, Virginia, South Carolina, Missouri and Arkansas offering the same general liability products. The Company is licensed and has the facilities to market and underwrite other insurance carriers' lines of business, as well as to process and adjust claims for third party insurance carriers. 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.

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