Attention Shareholders of Vesta Insurance Group Inc.

BALA CYNWYD, Pa.--(BUSINESS WIRE)--July 28, 1998--Notice is hereby given that a class action lawsuit was filed on July 24, 1998 in the United States District Court for the Northern District of Alabama, on behalf of all persons who purchased or otherwise acquired the common stock of Vesta Insurance Group Inc. ("Vesta" or the "Company"), from Jan. 27, 1994 through June 28, 1998, inclusive (the "Class Period").

The complaint charges Vesta (NYSE: VTA) and certain of its officers and directors with overstating the Company's revenues, net income, and earnings per share throughout the Class Period through the utilization of improper accounting methods. As a result of defendants' actions, the price of Vesta common stock was artificially inflated at all times during the Class Period.

Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Schiffrin Craig & Barroway, LLP which has significant experience and expertise prosecuting class actions on behalfof investorsand shareholders.

If you are a member of the class described above, you may, not later than Aug. 3, 1998, move the Court to serve as lead plaintiff of the class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements.

If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Schiffrin Craig & Barroway, LLP (Andrew L. Barroway, Esq.) toll free at 1-888-299-7706 or 610/667-7706, or via e-mail at [e-mail].

    CONTACT:  Schiffrin Craig & Barroway, LLP
               Andrew L. Barroway, Esq.
               888/299-7706 (toll free) or 610/667-7706
               Or by e-mail at [e-mail]