AmVestors Financial Corp. and Financial Benefit Group announce merger developments.

BOCA RATON, Fla.--(BUSINESS WIRE)--Dec. 28, 1995--AmVestors Financial Corp. ("AmVestors") (NYSE:AMV) and Financial Benefit Group ("FBG") (NASDAQ/NMS:FBGIA) announced Thursday that in order to facilitate efforts to fulfill conditions to their previously announced Merger Agreement, they have extended the termination date for the Merger Agreement from Jan. 31, 1996 to Feb. 14, 1996.

Approval of the Merger has been obtained from the Department of Insurance of the State of Florida, the domicile of Financial Benefit's insurance subsidiary.

The State of Michigan Insurance Bureau, however, has issued an order denying the application for requalification of FBG's insurance subsidiary to do business in Michigan if a change of control occurs pursuant to the Merger Agreement. The Michigan Insurance Bureau has cited various concerns about the FBG insurance subsidiary's investment portfolio and other aspects of its business. AmVestors and FBG expect to meet with Michigan's insurance regulators in the near future to urge the reconsideration of their decision.

Approximately 13% of FBG's premiums written during the 11 months ended Nov. 30, 1995 were written in Michigan. Michigan law provides that an insurer's certificate of authority is automatically revoked 90 days after a change of control unless the insurer requalifies for its certificate of authority within 90 days.

In addition to the Michigan approval, other significant conditions to AmVestors' obligation to consummate the Merger Agreement remain, and no assurance can be given that AmVestors or FBG will be successful in getting the Michigan order withdrawn or that such other conditions will be satisfied.

The parties will continue to use their best efforts to satisfy their respective obligations and, providing that all conditions are satisfied, to consummate the Merger as soon as practicable.

Currently the Merger Agreement provides that each share of FBG Class A common stock will be converted into cash and AmVestors common stock valued at $5.00 and a fraction of a warrant to purchase AmVestors common stock valued at $.31. Prior to the merger each share of FBG Class B common stock would be converted into 1.35 shares of FBG Class A common stock.

AmVestors Financial Corp. markets individual annuities and life insurance policies nationwide to the savings and retirement market through its wholly owned subsidiary, American Investors Life Insurance Co. Inc. American Investors is licensed in 47 states and the District of Columbia.

Financial Benefit Group Inc. is an insurance company located in Boca Raton, and owns all of the shares of Financial Benefit Life Insurance Co., a Florida insurer which specializes in the sale and underwriting of annuity products and is admitted in 41 jurisdictions, which includes 39 states, the District of Columbia and the U.S. Virgin Islands. The company also owns all of the shares of Annuity International Marketing Corp. and The Insurancemart Inc. both which specialize in the distribution and marketing of annuities.

AmVestors' common stock trades on the New York Stock Exchange under the symbol AMV. Financial Benefit Group Inc.'s Class A Common Stock trades in the Nasdaq National Market under the symbol FBGIA.

CONTACT: AmVestors Financial Corp., Topeka, Kansas 

Ralph W. Laster Jr. or Mark V. Heitz,

913/295-4406

or

Financial Benefit Group Inc., Boca Raton

Frank T. Crohn or Donna J. Rubertone,

407/394-9400