NEWS

                                          Contact:  Frank Moore 213/629-4974
                                                     
                                                    Company contact: Rick Dinon
                                                    or Ric Hill 818/704-3514


FOR IMMEDIATE RELEASE                                            July 27, 1998
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       20th CENTURY INDUSTRIES TO ADD $145.6 MILLION IN CAPITAL 
      FROM EXERCISE OF WARRANTS: AIG TO CONVERT PREFERRED STOCK


(WOODLAND HILLS, CALIF.) 20th Century Industries (NYSE:TW), the Woodland 
Hills-based insurance holding company, today said American International 
Group, Inc. (AIG) has presented its entire 16 million warrants for exercise 
to common stock at a price of $9.10 each. Proceeds from the exercise will add 
$145.6 million to 20th Century's capital.

The company also announced that AIG has tendered 224,750 shares of Series A 
preferred stock for conversion to common. This will require issuance of 
19,836,716 shares of common stock. At June 30, 1998, common shares 
outstanding were 51,728,381 and book value per common share was $7.76. Had 
this transaction occurred at the end of the second quarter 1998, book value 
would have been $8.81 and common shares outstanding would have totaled 
87,565,098.

"The 1994 financial alliance between American International Group, Inc. (AIG) 
and 20th Century Industries, which saved the Company, has worked exceedingly 
well and we have found AIG to be a good strategic partner," said John 
De Nault, chairman of 20th Century Industries. "Our board of directors will 
continue to work with AIG to define the future scope of 20th Century. Our 
objectives are to reach an agreement to continue an equitable dividend 
policy, obtain proper market support for our stock and establish independent 
mechanisms to protect and provide assurance for minority stockholders.


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20th CENTURY INDUSTRIES
DE NAULT STATEMENT
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20th Century Industries is the eighth-largest publicly held personal 
automobile insurer in the United States. Founded in 1958, the company is 
traded on the New York Stock Exchange under the trading symbol TW. The 
company's wholly owned subsidiaries, 20th Century Insurance Company and 21st 
Century Casualty Company, market personal automobile and personal excess 
liability insurance.

Both insurance subsidiaries sell directly to consumers without agents. 20th 
Century Industries is headquartered at 6301 Owensmouth Avenue, Woodland 
Hills, Calif., 91367; 818-704-3514. 20th Century's address on the Internet is 
WWW.20th CENTURY INSURANCE.COM.

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