Exhibit 99.1


                            FOR IMMEDIATE RELEASE

                      HALLMARK FINANCIAL SERVICES, INC.
                    ANNOUNCES PROMOTION OF TWO EXECUTIVES


 FORT WORTH,  Texas,  (March 22, 2006)  -  Hallmark Financial Services,  Inc.
 (Amex: HAF) today  announced that,  effective  April 1, 2006,  its Board  of
 Directors  has  promoted Mark J. Morrison to President of the Company.  Mark
 E. Schwarz, Chairman  and  Chief Executive Officer  of Hallmark,  previously
 held the additional title of President.  Mr. Morrison will continue to serve
 as Chief Operating Officer and Chief Financial Officer of the Company.

 "We are pleased with  the leadership  and  strategic direction Mark Morrison
 has given Hallmark over the last  two years.  We look forward  to  utilizing
 his 24  years  of experience  in  financial management,  administration  and
 strategic planning in  his expanded  role at  the Company,"  stated  Mark E.
 Schwarz, Chairman and Chief Executive Officer. "Mark has 15 years experience
 in the property  and  casualty insurance industry  and  has made significant
 contributions  to the Company during his tenure with Hallmark, including his
 involvement  in the  recent strategic  acquisitions that  have significantly
 broadened our business base."

 Mr. Morrison, age 46,  became Executive Vice President  and  Chief Financial
 Officer  upon  joining  the  Company  in  March  2004,  and  was  given  the
 additional  responsibilities of  Chief Operating Officer  in April 2005.  He
 has been  employed in  the property  and casualty  insurance industry  since
 1993. Prior to joining the Company, he had since 2001 served as President of
 Associates Insurance Group, a  subsidiary of the  St. Paul Travelers  Group.
 From  1996  through  2000,  he served  as  Senior Vice President  and  Chief
 Financial Officer  of Associates Insurance Group,  a division  of Associates
 First Capital Corporation. From 1991 to 1996, Mr. Morrison served in various
 financial leadership positions with American Eagle Insurance Group, Republic
 Insurance Group, and Anthem Life  Insurance Company. Mr. Morrison  began his
 career as a public  accountant with Ernst  & Young, LLP  from 1982 to  1991,
 where he completed his tenure as a Senior Manager.

 Hallmark also announced that the Board  has approved the promotion  of Kevin
 T. Kasitz to Executive Vice President  effective April 1, 2006.  Mr. Kasitz,
 who is currently President of the Company's Commercial  Insurance Operation,
 will assume additional corporate responsibilities  for business development,
 reinsurance and risk management.

 "I am pleased  to announce  Kevin Kasitz's expanded  role within  Hallmark,"
 stated Mr. Morrison. "Kevin has been instrumental in providing direction and
 leadership in the recent operational enhancements that have been implemented
 in our  Commercial  Insurance Operation.  I look  forward  to  even  greater
 benefit to the Company through  his expanded responsibilities across  all of
 Hallmark's operations."

 Mr. Kasitz, age 43, joined the Company April 2003  as its President  of  the
 Commercial Insurance Operation.  Prior  to  joining the Company,  Mr. Kasitz
 had  since  1991  been  employed  by  Benfield  Blanch  Inc.,  a reinsurance
 intermediary,  where  he  served as a Senior Vice President  in  the Program
 Services division (2000 to 2003) and Alternative Distribution division (1999
 to 2000), a Vice President in the Alternative Distribution division (1994 to
 1999)  and  a  Manager  in  the Wholesale Insurance Services division  (1991
 to  1994).  From  1989 to 1991,  he  was  a  personal lines underwriter  for
 Continental Insurance Company and from 1986 to 1989  was an internal auditor
 for National County Mutual Insurance Company.

 Hallmark Financial Services, Inc. engages primarily in sale of  property and
 casualty insurance products.  The Company's business involves  marketing and
 underwriting commercial  insurance  in Texas,  New  Mexico,  Idaho,  Oregon,
 Montana  and  Washington; marketing and underwriting  non-standard  personal
 automobile insurance in Texas, New Mexico and Arizona; marketing  of general
 aviation insurance in 44 states;  claims administration; and other insurance
 related services.  The Company is headquartered in Fort Worth, Texas and its
 common stock  is listed  on the  American Stock  Exchange  under the  symbol
 "HAF".

 Forward-looking statements in this  Release are made  pursuant to the  "safe
 harbor" provisions  of  the  Private  Securities  Litigation  Act  of  1995.
 Investors are cautioned  that actual results  may differ substantially  from
 such forward-looking statements.  Forward-looking  statements involve  risks
 and uncertainties including, but not limited to, continued acceptance of the
 Company's products  and services  in the  marketplace, competitive  factors,
 interest rate  trends,  the  availability of  financing,  underwriting  loss
 experience and  other risks  detailed from  time to  time  in the  Company's
 periodic report filings with the Securities and Exchange Commission.

                   For further information, please contact:
          Mark J. Morrison, Chief Operating Officer at 817.348.1600
                             www.hallmarkgrp.com
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