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                                                                    EXHIBIT 99.1


        RALEIGH, NORTH CAROLINA, OCTOBER 1, 1998 - FOR IMMEDIATE RELEASE

                     IAT CLOSES TENDER OFFER FOR McM SHARES

           McM Corporation, a Raleigh based insurance holding company ("McM"),
announced today that IAT Reinsurance Syndicate Ltd., a Bermuda based insurance
and investment company ("IAT"), accepted for payment all shares tendered
pursuant to IAT's previously announced tender offer for up to 35% of the
Company's common shares. IAT is acquiring 27.2% of the Company's shares pursuant
to the tender offer and 14% of the Company's shares from the McMillen Trust
pursuant to an agreement between IAT and the Trust, for a total stake in the
Company of 41.2%.

           Messrs. R. Peyton Woodson III, Laurence F. Lee, Jr., Laurence
F. Lee III, Claude G. Sanchez, Jr. and Jesse Greenfield resigned
today as directors of the Company.  The remaining directors George
E. King, Stephen L. Stephano and Michael A. DiGregorio appointed
Peter R. Kellogg, Edward A. Kerbs, Marguerite R. Gorman, John D.
Amaral and Richard D. Spurling to fill the board vacancies created
by the resignations.

           Wachovia Bank, N.A., acting as transfer agent for the Company and
Depositary for the tender offer, will promptly forward payment to shareholders
for all shares tendered.

           PaineWebber Incorporated has acted as financial advisor to McM in
connection with the transaction.


Company Contact:

George E. King
McM Corporation
919-833-1600