GUARANTY INCOME LIFE INSURANCE COMPANY

Press Release

February 19, 2008, Baton Rouge, Louisiana – Guaranty Income Life Holding Company, LLC and its wholly owned subsidiary, Guaranty Income Life Insurance Company (“GILICO”), announced their calendar year 2007 financial results today. George Foster, Jr., Chairman, stated, “Guaranty is proud of our 82-year history of being a family-owned company, with a heritage of innovative, consumer-oriented products. 2007 was another successful year of growth and profitability.”

Statutory direct premiums increased 15% to $61.3 million from $53.2 million in 2006. Statutory Assets grew 6% to $374 million versus $354 million at December 31, 2006.

Statutory net income was $0.9 million for 2007, compared to net income of $1.7 million in 2006. The main difference was due to higher death claims and the cost of writing new business. Statutory adjusted capital and surplus, including Asset Valuation Reserve and Interest Maintenance Reserve, reached $28.6 million at December 31, 2007, the highest level in our history.

Net income was $0.9 million compared to $1.8 million in 2006 on a “GAAP” (Generally Accepted Accounting Principles) basis. Capital and surplus, excluding accumulated unrealized gains and losses, reached a record high of $39.9 million at December 31, 2007 versus $38.9 million at December 31, 2006.

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. As a result, 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, “Sales of our flagship product line, AnnuiCare®, increased by 40% to over $10 million of first year premium in 2007. This was directly attributable to our reinsurance agreement with Munich American Re, the U.S. life reinsurance subsidiary of Munich Re, one of the largest reinsurance groups in the world, and the passage of two new laws which stimulated sales. The Deficit Reduction Act, signed into law February 8, 2006, made it more difficult for middle income and wealthy Americans to qualify for Medicaid. The Pension Protection Act (“PPA”), signed August 17, 2006, introduced new tax incentives for annuity/LTC combination products. Beginning January 1, 2010, the PPA tax changes allow LTC premiums to be paid from untaxed annuity distributions and the LTC benefits paid remain tax free.”

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. Combination products offer greater flexibility to address multiple needs for annuity values and LTC benefits at a fraction of the premium charged for separate, single solution products. Guaranty Income Life’s nine years of experience has established AnnuiCare® as the innovative leader in our combo niche. New riders being introduced in March 2008 will increase GILICO sales in the fast growing combo Annuity/LTC 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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