NEWS RELEASE
------------
FIRSTMARK CORP.
901 East Cary Street Richmond, Virginia 23219 (804) 648-9048
March 8, 1999 Contact:
Blair Winston, Firstmark Corp.
FOR IMMEDIATE RELEASE (804) 648-9048
- ---------------------
FIRSTMARK CORP. COMPLETES SALE
OF INSURANCE SUBSIDIARY TO OLD GUARD GROUP, INC.
RICHMOND, Va. --- Firstmark Corp. (NASDAQ: FIRM) announced today that
it has completed the sale of its principal operating subsidiary, Southern Title
Insurance Corp., and related corporate entities to Old Guard Group, Inc.
(Nasdaq: OGGI), a holding company for property and casualty insurance companies
based in Lancaster, Pennsylvania. Southern Title, which was founded in 1925,
provides residential and commercial title insurance and related services through
more than 100 offices. The sale is valued at approximately $8 million.
Under the terms of the sale, Firstmark received $6.75 million in cash
and could receive additional cash payments based on the pre-tax net income of
Southern Title for each of the next three fiscal years. While Firstmark expects
to post an after-tax loss from the sale, the additional capital will allow the
company to examine its plans for 1999 and beyond without the regulatory
limitations on the use of the capital resources of its former insurance
subsidiary.
Donald V. Cruickshanks, president and chief executive officer of both
Firstmark and Southern Title said, "The proceeds from this transaction will
significantly enhance the liquidity and overall financial strength of Firstmark,
and it will enable the company to pursue other opportunities."
Mr. Cruickshanks will continue to head Southern Title's operations
within the Old Guard family of insurance companies.
Firstmark Corp., founded in 1982, is a publicly-held Maine company with
executive offices in Richmond, Virginia. The company currently has various real
estate holdings and venture capital investments.
- more -
Certain statements in this letter may constitute "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995. Although Firstmark believes that its expectations with respect to
certain forward looking statements are based upon reasonable assumptions within
the bounds of its business operations, there can be no assurance that actual
results, performance or achievements of Firstmark will not differ materially
from any future results, performance or achievements expressed or implied by
such forward-looking statements.