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Rain and Hail Announces Withdrawal From Non-Binding Letter of Intent

(Johnston, Iowa—November 25, 2002)

Rain and Hail L.L.C. and affiliated parties today announced termination of further negotiations under the previously announced Non-Binding Letter of Intent because RMA (USDA Risk Management Agency) would not allow the transaction as set forth in the terms of the Non-Binding Letter of Intent. On November 18, 2002, Rain and Hail and affiliated parties announced the signing of a Non-Binding Letter of Intent for the potential purchase of the crop insurance assets of Acceptance Insurance Companies, Inc.

Certain key elements of the proposed transaction required agreement from various regulators. Exhaustive efforts by all parties failed to gain the necessary assurances that the proposed transaction, as structured, could move forward.

"Rain and Hail remains committed to the continued success of the federal crop insurance program, and to providing the premier service and financial strength required by our agents and policyholders,” said John Joyce, Rain and Hail Chairman.