AssuranceAmerica Corporation Announces September 2006 Results Showing Continuing Profits.

ATLANTA -- Atlanta-based ASSURANCEAMERICA CORPORATION (OTC BB: ASAM), today announced its unaudited financial results for September 2006 and the nine and three months ended September 30, 2006.

Revenues for the month of September 2006 increased 23% to $4.3 million, compared to $3.5 million for the same month of 2005. Revenues for the three-month period ended September 30, 2006 increased 32% to $13.1 million, compared with $9.9 million for the same period of 2005. Revenues for the nine months of 2006 increased 60 to $41.5 million, compared with $26.0 million for the same period of 2005.

Pretax earnings decreased 70% for the month of September 2006 to $183,000, compared to $602,000 in September 2005. Prior year pretax earnings included a quarter-end adjustment of approximately $200,000 which, by comparison with the current year, is now recorded on a monthly basis. The Company increased pretax earnings 10% for the three-month period ended September 30, 2006 to $0.9 million, compared with $0.8 million in the same period last year. The Company increased pretax earnings 39% for the first nine months of 2006 to $2.6 million, compared with $1.8 million in the same period last year.

Net income for the month of September decreased 62% to $230,000, compared with $602,000 in the same period of 2005. Prior year net income included a quarter-end adjustment of approximately $200,000 which, by comparison with the current year, is now recorded on a monthly basis. Net income for the three-month period ended September 30, 2006 increased 2% to $783,000, compared with $772,000 for the same period of 2005. Net income for the first nine months increased 6% to $1.9 million, compared with $1.8 million for the same period of 2005. Net income in 2005 reflected no provision for income taxes as the Company was able to fully utilize net operating tax loss carry forwards.

Gross Premiums Produced (a non-GAAP financial measure), which includes gross written premium in the Carrier/MGA's underwriting operations plus premiums for policies sold in the retail Agency subsidiary, increased 11% from $9.9 million in September 2005 to $11.0 million in September 2006. Gross Premiums Produced increased 18% from $28.8 million for the three months ended September 30, 2005 to $34.2 million for the same period of 2006. Gross Premiums Produced increased 42% from $81.9 million for the nine months ended September 30, 2005 to $116.1 million for the same period of 2006. Gross Premiums Produced is used by management as the primary measure of the underlying growth of the Company's revenue streams from period to period.

In announcing September's and year-to-date results, Lawrence (Bud) Stumbaugh, President and CEO of AssuranceAmerica Corporation said, "Recent rate increases we filed, and that were approved in all the states where our Carrier/MGA writes, somewhat slowed our revenue growth. That's not all bad as we don't ever want to be a commodity bought on the basis of price alone. We've also added some expenses to strengthen our foundation so we can expand into other states at the end of this year and early into 2007. This negatively impacted the profit increases we are used to seeing each month. Nonetheless, we take great pride in 2006 year to date pre-tax earnings of $2.6 million when the same nine months a year earlier generated $1.8 million. We are headed for our best year ever and are making the right investments to enable us to improve in future periods."

AssuranceAmerica focuses on the non-standard automobile insurance marketplace, primarily in Alabama, Florida, Georgia, South Carolina, and Texas. Its principal operating subsidiaries are TrustWay Insurance Agencies, LLC ("Agency"), which sells personal automobile insurance policies through its 45 retail agencies, AssuranceAmerica Managing General Agency, LLC ("MGA"), and AssuranceAmerica Insurance Company ("Carrier").

This press release includes statements that may constitute "forward-looking" statements. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements, as discussed in the Company's filings with the U.S. Securities Exchange Commission (SEC). Historical results are not indicative of future performance.

[TABLE OMITTED]
[TABLE OMITTED]
[TABLE OMITTED]

Please refer to our full 10QSB filing and the related Notes to Financial Statements