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STANDARD MANAGEMENT CORPORATION ANNOUNCES LETTER OF INTENT TO ACQUIRE DIXIE NATIONAL

 INDIANAPOLIS, Jan. 12 /PRNewswire/ -- Standard Management Corporation ("SMC") (NASDAQ: SMAN) today announced it had signed a "Letter of Intent" to acquire Dixie National Corp. ("Dixie"), a life insurance holding company located in Jackson, Miss. Dixie's primary operating subsidiary is Dixie National Life Insurance Company ("Dixie Life"). The proposed acquisition is subject to, among other things, the execution of a definitive agreement, completion of a fairness opinion and final approval by all regulatory authorities.
 SMC will undertake a tender offer for all of the outstanding shares of Dixie after execution of a stock purchase agreement. Such tender offer will value each share of Dixie stock at between $1.35 and $1.6875, which will be exchanged for shares of SMC stock based upon the average trading price of SMC's stock 10 trading days prior to closing. At June 30, 1993, Dixie had 6.4 million shares of common stock outstanding.
 Dixie Life operates through a network of independent insurance agents marketing a variety of life and defined-benefit cancer insurance products in 21 states and the District of Columbia. SMC Chairman and CEO Ronald D. Hunter stated that the marketing franchise was a major consideration with Dixie.
 For the six months ended June 30, 1993, Dixie had revenues of $10 million. At June 30, 1993, Dixie had total assets of $55.8 million and shareholders' equity of $12.5 million.
 The addition of this acquisition will bring the total assets of SMC to approximately $420 million and increase revenue over 50 percent.
 According to Hunter, this proposed acquisition adheres to SMC's ongoing business philosophy of growing both externally through acquisitions of small to medium sized companies and internally through distribution of insurance products.
 It is anticipated that two longstanding executives, Robert B. Neal, president, and Thomas F. Flowers, Jr., marketing director, will continue in an executive capacity.
 "This proposed acquisition will enhance our portfolio of products and increase our potential penetration in a number of key markets," Hunter stated. "We are genuinely excited about the prospects for a mutually beneficial acquisition adhering to the fundamental principles of continuing long-term shareholder value and policyholder security," he said.
 SMC is an international insurance holding company with operations in Europe and the United States. It acquires and manages in-force life insurance and annuity business and distributes life insurance and annuity products through a wholly owned national marketing company, Standard Marketing Corporation.
 -0- 1/12/94
 /CONTACT: Norman W. Wilkens, public relations, of Standard Advertising, Inc., 317-574-5221, for Standard Management Corporation/
 (SMAN)


CO: Standard Management Corporation; Dixie National Corp. ST: Indiana, Mississippi IN: INS SU: TNM

KL -- CL020 -- 1539 01/12/94 16:38 EST
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Publication:PR Newswire
Date:Jan 12, 1994
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