American Independence Corp. Seeks Stockholder Approval Of A One-for-Three Reverse Stock Split To Comply With Nasdaq Listing Requirements.

Business Editors

NEW YORK--(BUSINESS WIRE)--Dec. 16, 2002

American Independence Corp. (NASDAQ: AMIC) today announced that its Board of Directors authorized the Company to hold a special stockholders meeting to obtain authorization for a one-for-three reverse stock split.

The purpose of the reverse stock split is to have AMIC's common stock trade above $5.00 per share to remain listed on the Nasdaq National Market. Although currently listed on the Nasdaq National Market, AMIC is being required to comply with Nasdaq's initial listing requirements because of the discontinuation of its prior business and acquisition of its current insurance operations. If the stockholders authorize the reverse stock split, AMIC's Board of Directors will have the authority not to implement the reverse stock split in the event that it determines that a reverse stock split would not be in the best interests of AMIC's stockholders.

If the proposed one-for-three reverse stock split is executed, AMIC will issue one share for every three shares of common stock outstanding. Each stockholder's percentage ownership will not change, except that if the reverse stock split is approved by AMIC's stockholders and is effected, any fractional shares resulting from the reverse stock split will be cashed out pursuant to a formula.

AMIC is a holding company engaged principally in the insurance and reinsurance business through Independence American Insurance Company, IndependenceCare Holdings LLC, and Risk Assessment Strategies, Inc.

Some of the statements included herein may be considered to be forward looking statements which are subject to certain risks and uncertainties. For example, no assurance can be given that the minimum share bid price will remain at $5.00 per share even if the reverse stock split is approved by stockholders and effected, as the market price of AMIC's common stock will be primarily determined by its financial performance and other factors, such as the performance of the economy and the insurance industry generally. Other factors which could cause the actual results to differ materially from those suggested by such statements are described from time to time in AMIC filings with the Securities and Exchange Commission.

AMIC has filed a preliminary proxy statement relating to the special meeting of stockholders referred to above and will file a definitive proxy statement prior to seeking stockholder approval. Stockholders should carefully read the definitive proxy statement when it becomes available because it will contain important information. Stockholders will be able to obtain copies of the definitive proxy statement and other related documents filed with the Securities and Exchange Commission through the Commission's website at http://www.sec.gov, without charge. Stockholders will also be able to obtain copies of the definitive proxy statement and related materials, without charge, from American Independence Corp. attention David T. Kettig, 485 Madison Avenue, 14th Floor, New York, NY 10022.