Dutton Associates continues coverage of 21st Century Holding Company (Nasdaq: TCHC) raising its rating to Buy and a price target of $12.00. The 10-page report by Dutton Associates senior analyst Richard W. West, CFA, is available at www.duttonassociates.com as well as from First Call, Bloomberg, FactSet, Capital IQ, and other leading financial portals.

After the release of 2Q results, we lowered TCHC’s rating from Strong Buy to Strong Speculative Buy and lowered the price target from $16.00 to $9.00. However, in view of maintaining the quarterly dividend rate of $0.18, its resulting dividend yield of over 10%, and after analysis of 21st Century’s results in comparison with comparable peer groups, we now raise the rating to Buy and raise the price target to $12.00 per share. On pages 7 and 8 of our report we compare TCHC to four insurance companies, three larger and one similarly sized. In all regards, 21st Century is relatively undervalued. Assuming the maintenance of the $0.18 quarterly dividend, purchase of 21st Century’s common stock will provide a 10.7 % current yield on the expected $0.72 dividend. Management’s decision to diversify away from dependency upon property, auto, and mobile home insurance, while increasing its general liability underwriting, is being accomplished. It continues to diversify its geographical underwriting areas, becoming qualified in states outside of Florida, and is now underwriting commercial general liability coverage as an admitted carrier in Louisiana, Texas, and Alabama, for more than 300 classes of business, including special events. It also operates as an approved (non-admitted) carrier in California, Georgia, Kentucky, Virginia, South Carolina, Missouri, and Arkansas, offering the same general liability products. The goal for 21st Century is to become a national underwriter, and the diversification of its general liability underwriting is a major step toward this goal.

About Dutton Associates

Dutton Associates is one of the largest independent investment research firms in the U.S. Its 30 senior analysts are primarily CFAs, and have expertise in many industries. Dutton Associates provides continuing analyst coverage of over 140 enrolled companies, and its research, estimates, and ratings are carried in all the major databases serving institutions and online investors.

The cost of enrollment in our one-year continuing research program is US $35,000 prepaid for 4 Research Reports, typically published quarterly, and requisite Research Notes. We received $88,500 from the Company for 12 reports commencing 7/28/2004, and do not accept payment of our fees in company stock. Our principals and analysts are prohibited from owning or trading in securities of covered companies. The views expressed in this research report accurately reflect the analyst's personal views about the subject securities or issuer. Neither the analyst's compensation nor the compensation received by us is in any way related to the specific ratings or views contained in this research report or note. Please read full disclosures and analyst background at www.jmdutton.com before investing.

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John Dutton, President, 916-960-0624