Coventry First Continues to Protect Integrity of the Secondary Market for Life Insurance.

FORT WASHINGTON, Pa. -- Coventry First today announced that it had taken additional measures to protect the secondary market for life insurance by filing a formal complaint against 21st Services LLC, a Minneapolis, Minnesota-based provider of viatical and life settlement medical underwriting services, in Federal District Court in Philadelphia, Pennsylvania. On May 11, 2004, Coventry filed a lawsuit against Examination Management Services, Inc., a medical underwriter based in Waco, Texas.

The complaint describes how the long-term viability of the secondary market for life insurance is being adversely impacted by 21st Services. To date, over $1 billion has been raised to invest in settlements based on unrealistic projections promulgated by 21st Services and others.

The complaint details the unsupportable underwriting conduct of 21st Services. For example, an examination of more than 1,600 proposed settlement transactions underwritten by 21st Services and other leading national underwriters reveals that:

--21st Services' mean life expectancy projections were lower than projections provided by any other underwriter in 97 percent of cases, and that the average 21st Services life expectancy projection was shorter than the average life expectancy projection of all other participating underwriters by more than 50 percent.

--21st Services found only three insureds who were a standard risk, as opposed an average of 150 standard risks found by three other nationally recognized underwriting firms for the same population.

"As we said in May, it is in the best interests of both owners of insurance policies and investors in settlements that secondary market investors have confidence in the information generated by independent medical underwriters," said Alan H. Buerger, Chief Executive Officer of Coventry. "We are concerned that the methods employed by 21st Services are a key component of flawed investment structures promising unrealistic results. We believe that the investors who are relying on their projections will suffer significant losses, which will threaten the long-term viability of the secondary market."

"The secondary market for life insurance is continuing to provide substantial benefits for consumers," continued Mr. Buerger. "Every participant in this market should be concerned that appropriate practices and procedures are being followed to ensure the market's continued growth." Since November 2001, Coventry First has paid consumers more than $350 million over what they would have received if they had surrendered their policies to life insurance carriers.

About Coventry First

Coventry First LLC (www.coventryfirst.com) bridges insurance and capital markets to create groundbreaking products for the financial services industry. The company is the leader in the secondary market for life insurance and pioneered the resulting life settlement industry. Fueled by bold ideas, a deep understanding of life insurance, and impeccable ethical standards, Coventry First continues to lead the market by opening new opportunities for consumers and the financial professionals who serve them. Based in Fort Washington, PA, Coventry First was named the 10th fastest-growing privately owned company in Inc. magazine's 2004 ranking of the 500 fastest-growing private companies in the U.S.