Alfa Announces Extension of Letter of Intent With Vesta.

MONTGOMERY, Ala.--(BUSINESS WIRE)--Jan. 5, 1999--The Alfa Insurance Group ("Alfa"), which includes Alfa Mutual Insurance Company and Alfa Corporation (Nasdaq/NMS:ALFA), announced today that it had extended its previously announced letter of intent with Vesta Insurance Group, Inc. (NYSE:VTA). Due diligence and the negotiation of definitive agreements, both conditions to the transactions between Alfa and Vesta, are proceeding. Alfa expects that the transactions with Vesta will close in the second quarter of 1999.

Alfa also announced that its previously announced agreement to purchase approximately 1.8 million shares of Vesta common stock from Torchmark Corporation was terminated by Torchmark on January 1, 1999, as permitted by the agreement.

The Alfa Insurance Group is engaged in insurance and financial activities. The common stock of Alfa Corporation is traded on the Nasdaq Stock Market's National Market under the symbol ALFA.

Statements included in this news release that are not historical in nature are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on assumptions and opinions concerning a variety of known and unknown risks and uncertainties that may cause actual future results to differ materially from those contemplated, projected, estimated or budgeted in such forward-looking statements, including the risk that the referenced transactions will not be completed. A discussion of these risks and uncertainties is included in the periodic reports filed by Alfa Corporation with the Securities and Exchange Commission.