21st Century Announces $4 Million Stock Buyback Program

   Receives OIR Approval to Assume Up to 45,000 Policies From Citizens

LAUDERDALE LAKES, Fla., Oct. 29, 2009 (GLOBE NEWSWIRE) -- 21st Century Holding Company (Nasdaq:TCHC) today announced that its Board of Directors, after careful consultation with its financial advisors and legal counsel, has unanimously determined that the unsolicited proposal by Homeowners Choice, Inc. (Nasdaq:HCII) to acquire all outstanding shares of 21st Century common stock for approximately $5.30 per share in cash and stock is wholly inadequate and not in the best interest of the company's shareholders.

"We believe the proposal substantially undervalues the assets and earnings potential of 21st Century," said Bruce Simberg, Chairman of the Board of Directors. "The proposal does not take into account the premium growth initiatives that the company has already started to implement, including our recently announced premium rate increases, our continued multi-state diversification into additional lines of insurance, and our improved investment portfolio management, which we expect will result in sustainable future profits. We are pleased to also announce that we have recently received approval from the Florida Office of Insurance Regulation to assume up to 45,000 additional policies from Citizens Property Insurance Corporation, with no more than 15,000 during the month of December. We strongly believe that our standalone strategic plan offers greater value for our shareholders."

In reaching its conclusion, 21st Century's Board of Directors thoroughly reviewed and carefully considered the proposal with its independent financial advisors and legal counsel. The Board of Directors unanimously concluded that the proposal fails to be competitive with the strategic plan and initiatives the company has developed to generate significant growth in top-line revenue and bottom-line net income, which it believes will increase value for the company's shareholders.

The company also announced today that its Board of Directors has unanimously approved a stock repurchase program that authorizes the purchase by the company in the open market, from time to time, of up to $4 million worth of the company's common stock.

Michael H. Braun, Chief Executive Officer of 21st Century Holding Company, said, "We believe that today's announcement of a share repurchase delivers significant value to shareholders and demonstrates the Board's confidence in the company's future performance. We are facing a difficult economic environment that is affecting the industry as a whole. 21st Century, despite improved gross written premium and improved investment income and gains, still faces some challenges that will affect profitability in the near-term due to reinsurance costs and wind mitigation credits. While 21st Century will not report profits in the 3rd or 4th quarters of 2009, we anticipate returning to profitability thereafter. We believe that pursuing 21st Century's existing strategic growth plan will enable our shareholders to realize the inherent value of the company."

Following is the text of a letter from Mr. Simberg to Homeowners Choice Board Chairman Paresh Patel, communicating the decision of the Company's Board of Directors:

October 29, 2009

 Mr. Paresh Patel
 Chairman of the Board
 Homeowners Choice, Inc.
 2340 Drew Street, Suite 200
 Clearwater, FL  33765

Dear Mr. Patel:

This letter constitutes a response from the Board of Directors of 21st Century Holding Company to your unsolicited proposal in your letter to me dated October 12, 2009.

The Board noted that your letter is expressly not an offer, but is only a preliminary, non-binding indication of interest in exploring a merger of 21st Century with Homeowners Choice. Notwithstanding the non-binding and preliminary nature of your proposal, the 21st Century Board has thoroughly and carefully assessed and examined all aspects of your proposal with the assistance of and consultation with an independent financial adviser engaged expressly for this purpose, as well as outside legal counsel.

The 21st Century Board has unanimously concluded that your proposal is inadequate and not in the best interests of 21st Century shareholders. In reaching this conclusion, the Board reviewed -- among other items -- the standalone strategic growth plan implemented this year to enhance shareholder value. The Board has determined that your proposal does not compare favorably to the inherent value of 21st Century or to its strategic growth plan to increase value for its shareholders.