ARM Financial Group, Inc. and Others Named in Class Action.

HARTFORD, Conn.--(BUSINESS WIRE)--Sept. 2, 1999--

A class action complaint alleging securities fraud has been filed on behalf of all purchasers of the common stock of ARM Financial Group, Inc. (NYSE:ARM) ("ARM" or the "Company") between October 27, 1998, through and including August 3, 1999, inclusive (the "Class Period"). The Complaint was filed in the United States District Court for the Western District of Kentucky, Louisville Division.

The Complaint charges that ARM and certain of its officers and directors (collectively, the "Defendants") violated the federal securities laws by, among other things, knowingly or recklessly issuing a series of materially false and misleading statements concerning the Company's operations and the value and quality of the Company's investment portfolio. The Complaint further alleges that by making these materially false and misleading statements, the Defendants artificially inflated the price of ARM common stock during the Class Period, and, while concealing the adverse information about ARM, certain corporate officers sold thousands of shares of ARM common stock to the unsuspecting investing public at the artificially inflated prices.

Plaintiff seeks to recover damages on behalf of all class members. Plaintiff is represented by the law firm of Schatz & Nobel, P.C., which has significant experience prosecuting class actions on behalf of investors. If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Andrew M. Schatz or Jeffrey S. Nobel at [phone], or by e-mail at [e-mail].

If you purchased ARM Financial Group, Inc. common stock (NYSE: ARM) during the Class Period and wish to act as lead plaintiff, you may move the Court to serve in that capacity not later than October 17, 1999. For further information, please contact Schatz & Nobel, P.C. at the following toll-free number: [phone], or via e-mail at [e-mail].