Exhibit 99.3


CONTACT:  Steven J. Johnston
          Senior Vice President, Treasurer, and Chief Financial Officer
          (614) 464-5029

                          STATE AUTO SUES SHEPARD OVER
                        "INTENTIONAL MISREPRESENTATIONS"

         COLUMBUS, OHIO - JUNE 30, 2003 -- State Auto Companies went to federal
court Monday asking that dissident shareholder Gregory M. Shepard be ordered to
correct "intentional misrepresentations and omissions" in public statements, and
in legal papers filed in connection with his bid to take over the companies.

         The suit was filed by State Automobile Mutual Insurance Company and its
subsidiary, State Auto Financial Corporation (NASDAQ: STFC). It contends that in
his public statements and in filings required by federal securities law,
Shepard:

         -        Made statements indicating he personally would finance his
                  proposed purchase of State Auto Financial public shares when,
                  in fact, his proposal would be financed using State Auto's own
                  assets or credit.

         -        Failed to disclose his role in the violation of the Indiana
                  Business Takeover Act in a previous takeover attempt.

         -        Failed to disclose that another company he controlled ended up
                  in financial ruin, stranding some 26,000 policyholders without
                  coverage.

                  The suit contends that "Shepard's Schedule 13D filings are
false and misleading, and fail to provide full and fair disclosure of material
information in violation of Section 13(d) and related SEC rules and
regulations."

         It asks that Shepard be ordered to stop and correct his misstatements,
and that he be ordered not to buy or sell shares of State Auto Financial or
pursue his takeover bid until 30 days after he has done so.

         Chief Executive Officer Robert Moone stated that the litigation
evidenced the commitment of the State Auto Companies to protect policyholders,
security holders, and the public from third parties willing to bend or break
securities laws for their own financial gain.

         The suit was filed in the United States District Court for the Southern
District of Ohio, Eastern Division following endorsement by the Mutual Board of
a previously announced recommendation of its Special Committee of outside
directors that the Company not engage in discussions with Shepard.