American Financial Holdings, Inc. Merges with The Tower Group Inc.

DALLAS -- "The Tower Group (Dallas, Texas) is pleased to announce the merger with American Financial Holdings," said John Zouzelka, Chairman and Chief Executive Officer. "The Tower Group's established management team has a focused dedication to its client's needs, and a proven record of developing properties and increasing assets. This merger is another milestone in our 35 year operating history and will better position our team's expertise to take advantage of the increasing opportunities in the real estate sector."

John Zouzelka (CEO) has 36 years experience at The Tower Group. The Tower Group will become a wholly own subsidiary of American Financial Holdings (Pink Sheets: AFHJ).

About The Tower Group Inc.

The Tower Group Inc. is a Texas-based residential and commercial real estate development and investment firm that has established a niche market while developing the exciting North Texas area. The Tower Group has made a successful real estate business using innovative ideas backed by expertise and knowledge targeting profitable trends existing in the real estate industry. The Tower Group Inc. has specialized in award-winning quality real estate development since 1969 with communities located in Dallas, Denver, Atlanta, Washington, D.C. and Toronto.

The Tower Group has over $2 billion of successful development being completed, such as The Dallas Cowboys Headquarters, The Mary Kay Headquarters, The Club Corp. Building, Eldorado Town Center, Valley Ranch, Lone Tree, King's Gate, Oakwood Estates, Oakdale, Lakes of Coppell, Villages of Bear Creek, and Kings Lake.

The Dallas Home Builders Association, http://www.dallasbuilders.com, has selected Kings Lake as the site for the 2005 Parade of Homes tour. Parade of Homes brings an estimated thirty-five thousand visitors to the featured location each year, attracting a diverse range of demographic profiles. http://www.kings-lake.com

Forward-Looking Statements

The statements made herein are forward-looking, based upon current expectations, subject to uncertainties and risks, and actual results may differ materially. The uncertainties and risks include, but are not limited to, the ability to complete the proposed business combinations, the ability of AFHJ to execute effectively its business plan, changes in market activity, as well as economic and political conditions. Any forward-looking statements are made pursuant to the Private Securities Litigation Reform Act of 1995 and, as such, speak only as of the date made.

Statements made in this document that are not purely historical are forward-looking statements, including any statements as to beliefs, plans, expectations, or intentions regarding the future. The Company assumes no obligation to update information concerning its expectations.