Class Action Filed Against AICI Capital Trust, Acceptance Insurance Companies, Inc., and Certain of Its Officers and Directors Alleging Violations of Federal Securities Law.

Business Editors &Legal Writers

NEW YORK--(BUSINESS WIRE)--Feb. 7, 2000

The following is an announcement by the law firm of Rabin &Peckel LLP:

A class action has been commenced in the United States District Court for the District of Nebraska, on behalf of purchasers of AICI Capital Trust (&uot;AICI&uot;) (NYSE: AIF PrT) preferred securities during the period from July 29, 1997 through November 15, 1999, inclusive (the &uot;Class Period&uot;). AICI is a wholly controlled subsidiary of Acceptance Insurance Companies, Inc (&uot;Acceptance Insurance&uot;) (NYSE: AIF).

The Complaint alleges that AICI, Acceptance Insurance, and certain of its directors and officers violated violated the Securities Act of 1933 by issuing a false and misleading Registration Statement and Prospectus for the public offering of AICI preferred securities. In particular, it is alleged that the Prospectus failed to that the Company's loss reserves were inadequate and failed to disclose that the Company was exposed to losses on policies issued to construction contractors and subcontractors in California as a result of the 1995 California Supreme Court decision adopting the &uot;continuous trigger&uot; theory for losses involving continuous or progressive damage. AICI preferred securities which sold at $25 per preferred security on the offering closed at $12 1/16 today.

Plaintiff seeks to recover damages suffered by class members and is represented by the law firm of Rabin &Peckel LLP. Rabin &Peckel LLP and its predecessor firms have devoted its practice to shareholder class actions and complex commercial litigation for more than thirty years and have recovered hundreds of millions of dollars for shareholders in class actions throughout the United States.

If you are a member of the class described above, you may, no later than April 7, 2000 move the Court to serve as lead plaintiff of the class, if you so choose. 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 announcement or your rights or interests, please contact Joseph V. McBride, Rabin &Peckel LLP, 275 Madison Avenue, New York, NY 10016, by telephone at [phone] or [phone], by facsimile at [phone], by e-mail at [e-mail].