Class Action Suit Filed Against Vesta Insurance Group Inc. and its Officers Alleging Misrepresentations.

SAN DIEGO--(BUSINESS WIRE)--June 3, 1998--A class action has been commenced on behalf of purchasers of Vesta Insurance Group Inc. ("Vesta") (NYSE:VTA) common stock between October 1, 1997 and June 1, 1998 (the "Class Period").

The complaint charges Vesta and certain of its officers with violations of the securities laws. The complaint alleges that during the Class Period, defendants issued false financial statements and earnings reports for Vesta. As a result of defendants' false and misleading statements, the market price of Vesta common stock was inflated between October 1, 1997 and June 1, 1998.

On June 1, 1998, Vesta announced that: (1) defendant Robert Y. Huffman, Vesta's president, had resigned; (2) it was undertaking an internal investigation into accounting irregularities; (3) such irregularities were likely to affect the earnings Vesta previously reported for the fourth quarter of 1997 and the first quarter of 1998; (4) the impact of the irregularities was at least $15.25 million; (5) the investigation was exploring whether the irregularities impacted the results of other quarters; and (6) the Company had retained a law firm to conduct an investigation into its accounting irregularities. As a result of this announcement, trading in Vesta was halted and market professionals estimated the market value of Vesta stock to be approximately 50 percent lower than its close on May 29, 1998.

Plaintiff seeks to recover damages on behalf of all purchasers of Vesta common stock during the Class Period (the "Class"). The plaintiff is represented by several law firms, including Milberg Weiss Bershad Hynes & Lerach LLP, who have expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.

Milberg Weiss has been actively engaged in commercial litigation, emphasizing securities and antitrust class actions, for more than 20 years. The firm has offices in New York, San Diego, San Francisco and Los Angeles and is active in major litigations pending in federal and state courts throughout the United States. The firm's reputation for excellence has been recognized on repeated occasions by courts which have appointed the firm to major positions in complex multi-district or consolidated litigations. Milberg Weiss has taken a lead role in numerous important actions on behalf of defrauded investors, and has been responsible for a number of outstanding recoveries which, in the aggregate, total approximately $2 billion. Visit the firm's Web site at http://www.milberg.com.

If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, William Lerach, Alan Schulman or Darren Robbins of Milberg Weiss at 800/449-4900 or via e-mail at [e-mail].

    CONTACT:  Milberg Weiss Bershad Hynes & Lerach
               William Lerach, 800/449-4900
               [e-mail]