Alfa Corporation Completes Sale of Building and Realty Subsidiaries.

Business Editors

MONTGOMERY, Ala.--(BUSINESS WIRE)--Feb. 27, 2004

Alfa Corporation (Nasdaq/NM:ALFA) Alfa Corporation announced today that it has completed the sale of Alfa Builders, Inc., and Alfa Realty, Inc., its wholly owned building and realty subsidiaries, to Southern Boulevard Corporation, a wholly owned subsidiary of Alfa Mutual Insurance Company. Alfa Builders is engaged in residential and commercial construction. Alfa Realty is engaged in real estate sales.

These divestitures were required as part of Alfa Corporation's approval by the Office of Thrift Supervision to become a thrift holding company. In August 2002, Alfa Financial Corporation, a wholly owned subsidiary of Alfa Corporation, took a significant ownership position in MidCountry Financial Corporation. MidCountry's vision is to build a diversified financial services company with banking, consumer finance, mortgage, and equipment leasing activities. MidCountry's most recent acquisition was Bayside Bank in Minnetonka, Minnesota, a $70 million banking institution. As a result of this transaction, and because of its significant ownership percentage in MidCountry, Alfa Corporation applied and was approved as a thrift holding company.

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