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INTEGON SETS INTEREST RATE ON NOTES OFFERING

 INTEGON SETS INTEREST RATE ON NOTES OFFERING
 WINSTON-SALEM, N.C., Aug. 12 /PRNewswire/ --Integon Corporation


(NYSE: IN) announced today that it has sold $75 million principal amount of 8 percent Senior Notes due 1999 at a price of 99.732 to yield 8.05 percent. Underwriters for the offering are Smith Barney, Harris Upham & Co. Incorporated and Donaldson, Lufkin & Jenrette Securities Corporation.
 Proceeds from the offering will be used to retire all current outstanding debt and preferred stock and will provide the Company with additional working capital.
 The Company will retire its $40 million principal amount 15 percent Subordinated Note due Aug. 1, 2000; its $15.3 million principal amount 10 percent Note held by an affiliate on or before Jan. 1, 1993; and the Company's Series A and Series B Cumulative Preferred Stocks.
 The initial impact of these transactions will be an extraordinary after-tax charge of approximately $1.3 million to reflect the premium to be paid on the Subordinated Note and a slight increase in Shareholders' Equity due to the gain on the retirement of the Series B Cumulative Preferred Stock.
 In announcing the interest rate for the Notes Offering, Integon President James T. Lambie said, "By taking advantage of current, very favorable interest rates, Integon is able to reduce the interest rate on its debt through this offering."
 Interested persons may obtain a written prospectus from Smith Barney, Harris Upham & Co. Incorporated, 1345 Avenue of the Americas, New York, N.Y., or Donaldson, Lufkin & Jenbrette Securities Corporation, 140 Broadway, New York, N.Y. This announcement shall not constitute an offer to sell or the solicitation of an offer to buy the Senior Notes. Any such offer or solicitation may be made only pursuant to the prospectus relating to the Senior Notes.
 Integon Corporation, through its wholly-owned property and casualty insurance subsidiaries, specializes in the underwriting and marketing of specialty automobile insurance products to individuals. The Company, headquartered in Winston-Salem, N.C., markets its products through over 2,500 independent agencies located in North Carolina, Virginia, Tennessee and Georgia.
 -0- 8/12/92
 /CONTACT: Turner Coley of Turner Coley Associates, 919-760-3000, for Integon Corporation/
 (IN) CO: Integon Corporation ST: North Carolina IN: INS SU: OFR


CM -- CH007 -- 6308 08/12/92 15:42 EDT
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Publication:PR Newswire
Date:Aug 12, 1992
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