GUARANTY INCOME LIFE INSURANCE COMPANY

Press Release

February 15, 2007, Baton Rouge, Louisiana - Guaranty Income Life Holding Company, LLC and its wholly owned subsidiary, Guaranty Income Life Insurance Company ("GILICO"), announced their calendar year 2006 financial results today. George Foster, Jr., Chairman, stated, "We are pleased to report another successful year of profitability. Guaranty is proud of our 81-year history of being a family-owned company, with a heritage of innovative, consumer-oriented products."

Net income increased 20% to $1.8 million compared to $1.5 million in 2005 on a “GAAP” (Generally Accepted Accounting Principles) basis. Capital and surplus, excluding unrealized gains and losses, reached a record high of $38.9 million at December 31, 2006 versus $33.9 million at December 31, 2005.

Statutory net income improved to $1.7 million for 2006, compared to net income of $0.6 million in 2005. Statutory admitted assets were $354 million at December 31, 2006 compared to $348 million at December 31, 2005. Statutory direct premiums increased 6% to $53 million, while statutory adjusted capital and surplus, including Asset Valuation Reserve and Interest Maintenance Reserve, reached $28.5 million at December 31, 2006, the highest level in our history, compared to $24.7 million at December 31, 2005.

GILICO’s emphasis on liquidity and high quality securities produced a bond portfolio with a credit rating of AAA, which is among the most secure in the insurance industry.

General expenses have remained level while assets have grown significantly over the past several years. GILICO has lower average expense levels than our insurance industry peers. This trend continues to validate the strength and efficiency of our organization and the ability to add substantial new business without increasing expenses.

John Lancaster, Guaranty Income Life’s President, said, “Two of the most important events during 2006 were the passage of new laws which will stimulate sales of our primary products–AnnuiCare®. The Deficit Reduction Act, signed into law February 8, 2006, made it more difficult for middle income and wealthy Americans to qualify for Medicaid. This will add impetus to long-term care (“LTC”) insurance sales. The Pension Protection Act, signed August 17, 2006, introduced new tax incentives for annuity/LTC combination products. Combination products offer greater flexibility to address multiple needs for annuity values and LTC benefits at a lower premium than separate, single solution products.”

AnnuiCare®, the original annuity/LTC combination product, was introduced in 1999. Guaranty Income Life was the first company to attach a tax-qualified LTC rider to a traditional annuity. Guaranty Income Life’s eight years of experience has established AnnuiCare® as the leader in this important market.

Guaranty Income Life Insurance Company was founded in 1926 and is a Legal Reserve Insurance Company currently licensed in 31 states. In addition to cost-effective life insurance, long-term care and annuity programs, Guaranty Income Life offers products and services to help families meet their financial needs of wealth protection and wealth creation today and in the future.

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