AmCOMP Announces $30 Million Line of Credit with Regions Bank.

NORTH PALM BEACH, Fla. -- AmCOMP, Inc. (Nasdaq:AMCP) today announced that it has received a commitment for a $30 million secured non-revolving line of credit from Regions Bank. AmCOMP expects that the loan will be finalized and definitive loan documents will be executed within the next 60 days. Under the terms of the commitment for the loan, the interest rate is to be a floating rate of 160 basis points over London Interbank Offered Rate ("LIBOR"). Advances under the commitment will be available for up to two years from the date of closing. Fundings under the commitment will have a seven-year fully amortizing term and can be repaid at any time without penalty. The loan has no fees associated with it other than a 1/4% non-usage fee per annum pro-rated for the amount of loan principal which is not drawn down by AmCOMP. The loan is to be collateralized by the stock of a wholly-owned insurance subsidiary of AmCOMP and certain intercompany surplus notes. The loan is designated for strategic and general corporate purposes.

Fred R. Lowe, Chief Executive Officer and President of AmCOMP, commented: "We are pleased with the terms of the loan, which we believe reflects Regions Bank's confidence in AmCOMP's business strategy and which gives us the necessary financial flexibility to continue to pursue our strategic goals. Our relationship with Regions Bank, a successor to AmSouth Bank, has been a critical factor in the success of our company."

AmCOMP has enjoyed a seven-year commercial banking relationship with AmSouth Bank, which was recently acquired by Regions Bank. A subsidiary of Regions Financial Corporation, Regions Bank serves customers in 16 states across the South, Midwest and Texas, operates 1,900 banking offices and a 2,400-ATM network.

About AmCOMP

With roots dating back to 1982, AmCOMP Incorporated is an insurance holding company whose wholly owned subsidiaries, AmCOMP Preferred and AmCOMP Assurance, are mono-line workers' compensation insurers with products that focus on value-added services to policyholders. Currently marketing insurance policies in 15 core states and targeting small to mid-sized employers in a variety of industries, AmCOMP distributes its products through independent agencies.

Forward-looking Statements 

Statements made in this press release, including those about the Company's financial condition and results of operations and about its future plans and objectives that are not based on historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The words "believe," "expect," "plans," "intend," "project," "estimate," "may," "should," "will," "continue," "potential," "forecast" and "anticipate" and similar expressions identify forward-looking statements. Any such statements involve known and unknown risks, uncertainties and other factors, including those set forth under the heading "Risk Factors" in the Company's filings with the Securities and Exchange Commission. Such factors may cause AmCOMP's actual performance, condition and achievements to be materially different than any future performance, condition and achievement discussed in this press release. All subsequent written and oral forward-looking statements attributable to us or individuals acting on our behalf are expressly qualified in their entirety by these cautionary statements. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.