Alfa Corporation Increases Stock Repurchase Program.

MONTGOMERY, Ala.--(BUSINESS WIRE)--March 23, 1999--Alfa Corporation (Nasdaq/NM:ALFA) today announced that its Board of Directors has expanded the Company's stock repurchase program to add an additional 2,000,000 shares of its common stock to the plan. In October 1989 the Company announced its intent to repurchase up to 2,000,000 shares and to date, has repurchased 1,691,000 shares under that program. This includes 571,400 shares acquired thus far in 1999. Therefore the remaining authorization under the plan will be 2,309,000 common shares. Currently, Alfa has approximately 40.3 million shares outstanding.

Subject to availability, the Company is authorized to make stock repurchases from time to time in open-market or privately negotiated transactions as, in the opinion of management, market conditions warrant. Recent repurchases have included transactions with the Company's affiliates, Alfa Mutual Insurance Company and Alfa Mutual Fire Insurance Company, which collectively own 50.7% of the Company's outstanding stock. The above authorized repurchase transactions may also include purchases from the Company's affiliates. The repurchased shares will be added to the Company's treasury shares and will be available to reissue for general corporate purposes.

Jerry A. Newby, Alfa's Chairman, President and Chief Executive Officer, commented, "Our decision to expand the Company's stock buyback program underscores management's confidence in Alfa's future and is an opportunity to further enhance shareholder value."

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.

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. A discussion of these risks and uncertainties is included in the periodic reports filed by Alfa Corporation with the Securities and Exchange Commission.