Global Life Insurance Index (AMBGL) +2.01%

U.S. Life Insurance Index (AMBUL) +1.60%

European Insurance Index (AMBEUR) +1.50%

U.S. Life and Health/HMO Insurance Index (AMBULH) +1.45%

U.S. Health and HMO Insurance Index (AMBUH) +1.29%

Global Reinsurance Index (AMBGR) +1.28%

Global Composite Index (AMBG) +1.08%

U.S. Insurance Brokers Index (AMBUB) +0.94%

U.S. Multi-Line Insurance Index (AMBUML) +0.92%

U.S. Insurance Index (AMBUS) +0.88%

Global Insurance Brokers Index (AMBGB) +0.86%

Asia/Pacific Insurance Index (AMBAP) +0.83%

Global Multi-Line Insurance Index (AMBGML) +0.63%

Global Non-Life Insurance Index (AMBGNL) +0.52%

U.S. Property/Casualty Insurance Index (AMBUPC) +0.37%

The U.S. Insurance Index (AMBUS) closed at 748.68 (+0.88%). Leading the AMBUS were 21st Century Holding Co. (+10.08%) and Investors Heritage Capital Co. (+7.87%). Trailing the AMBUS were CRM Holdings (-12.16%) and NYMagic (-4.09%).

The European Insurance Index (AMBEUR) closed at 900.54 (+1.50%). Leading the AMBEUR were ING Groep N.V. (+6.60%) and Legal & General Group (+5.53%). Trailing the AMBEUR were Hiscox (-1.59%) and Beazley Group (-1.58%).

The Asia/Pacific Insurance Index (AMBAP) closed at 1152.58 (+0.83%). Leading the AMBAP were Samsung Fire & Marine Insurance Co. Ltd. (+1.39%) and Nipponkoa Insurance (+1.18%). Trailing the AMBAP were Singapore Reinsurance Corp. (-5.26%) and Hyundai Marine & Fire Insurance Co. Ltd. (-1.91%).

The Global Reinsurance Index (AMBGR) closed at 976.60 (+1.28%). Leading the AMBGR were ING Groep N.V. (+6.60%) and Aegon N.V. (+4.07%). Trailing the AMBGR were Singapore Reinsurance Corp. (-5.26%) and Continental Reinsurance (-4.97%).

The Global Broker Index (AMBGB) closed at 1008.50 (+0.86%). Leading the AMBGB were National Financial Partners (+2.34%) and Marsh & McLennan Cos. (+1.25%). Trailing the AMBGB were Advance Create Co. (-1.72%) and eHealth Inc. (-0.88%).

The Global Multi-Line Insurance Index (AMBGML) closed at 618.09 (+0.63%). Leading the AMBGML were Generali Deutschland Holding (+3.06%) and Hartford Financial Services Group (+2.72%). Trailing the AMBGML were American International Group (-2.23%) and Allianz (-0.16%).

The Global Nonlife Insurance Index (AMBGNL) closed at 1065.13 (+0.52%). Leading the AMBGNL were 21st Century Holding Co. (+10.08%) and PMA Capital Corp. (+5.41%). Trailing the AMBGNL were CRM Holdings (-12.16%) and Kingsway Financial Services (-6.41%).

The Global Life Insurance Index (AMBGL) closed at 774.17 (+2.01%). Leading the AMBGL were Investors Heritage Capital Co. (+7.87%) and ING Groep N.V. (+6.60%). Trailing the AMBGL were Industrial Alliance Ins. & FS (-1.72%) and Sun Life Financial (-0.77%).

The U.S. Property/Casualty Index (AMBUPC) closed at 1076.05 (+0.37%). Leading the AMBUPC were 21st Century Holding Co. (+10.08%) and PMA Capital Corp. (+5.41%). Trailing the AMBUPC were CRM Holdings (-12.16%) and NYMagic (-4.09%).

The U.S. Multi-Line Insurance Index (AMBUML) closed at 192.28 (+0.92%). Leading the AMBUML were Hartford Financial Services Group (+2.72%) and Unitrin (+2.39%). Trailing the AMBUML were AIG (-2.23%) and Atlantic American Corp. (0.00%).

The U.S. Life Insurance Index (AMBUL) closed at 784.27 (+1.60%). Leading the AMBUL were Investors Heritage Capital Co. (+7.87%) and Phoenix Cos. (+5.52%). Trailing the AMBUL were Sun Life Financial (-0.77%) and Presidential Life Corp. (+0.76%).

The U.S. Life and Health/HMO Insurance Index (AMBULH) closed at 827.15 (+1.45%). Leading the AMBULH were Investors Heritage Capital Co. (+7.87%) and Phoenix Cos. (+5.52%). Trailing the AMBULH were Sun Life Financial (-0.77%) and HealthSpring (-0.25%).

The U.S. Health and HMO Index (AMBUH) closed at 871.49 (+1.29%). Leading the AMBUH were Aflac Inc. (+2.14%) and WellPoint (+1.97%). Trailing the AMBUH were HealthSpring (-0.25%) and Humana (-0.24%).

The U.S. Insurance Brokers Index (AMBUB) closed at 922.83 (+0.94%). Leading the AMBUB were National Financial Partners (+2.34%) and Marsh & McLennan Cos. (+1.25%). Trailing the AMBUB were eHealth Inc. (-0.88%) and AmTrust Financial Services Inc. (-0.50%).

Performance rankings of companies in each A.M. Best insurance sector index are published weekly in BestWeek.

The A.M. Best stock indexes cover 203 publicly traded insurance companies and brokers. Index values are calculated by Dow Jones Indexes in U.S. dollars. Companies in the A.M. Best stock indexes include insurers and insurance-related organizations with credit ratings from A.M. Best, along with brokers. A.M. Best does not provide investment recommendations. A listing of companies in each A.M. Best Index is available at http://www.ambest.com/stocks.

U.S. Property/Casualty Insurance Index (AMBUPC) -0.32%

U.S. Insurance Brokers Index (AMBUB) -0.44%

Global Reinsurance Index (AMBGR) -0.49%

Global Insurance Brokers Index (AMBGB) -0.58%

Global Non-Life Insurance Index (AMBGNL) -0.62%

Asia/Pacific Insurance Index (AMBAP) -1.08%

U.S. Insurance Index (AMBUS) -1.23%

Global Composite Index (AMBG) -1.26%

European Insurance Index (AMBEUR) -1.36%

Global Multi-Line Insurance Index (AMBGML) -1.52%

Global Life Insurance Index (AMBGL) -1.83%

U.S. Life Insurance Index (AMBUL) -2.05%

U.S. Life and Health/HMO Insurance Index (AMBULH) -2.06%

U.S. Health and HMO Insurance Index (AMBUH) -2.07%

U.S. Multi-Line Insurance Index (AMBUML) -2.81%

The U.S. Insurance Index (AMBUS) closed at 738.86 (-1.23%). Leading the AMBUS were 21st Century Holding Co. (+18.73%) and Gainsco (+4.98%). Trailing the AMBUS were Independence Holding Co. (-7.00%) and Hartford Financial Services Group (-6.76%).

The European Insurance Index (AMBEUR) closed at 946.03 (-1.36%). Leading the AMBEUR were Hannover Rueckversicherungs AG (+2.23%) and Paris Re Holdings (+1.08%). Trailing the AMBEUR were Hiscox (-5.39%) and Amlin plc (-4.56%).

The Asia/Pacific Insurance Index (AMBAP) closed at 1160.96 (-1.08%). Leading the AMBAP were Singapore Reinsurance Corp. (+5.00%) and China Taiping Insurance Holdings Co. Ltd. (+0.80%). Trailing the AMBAP were Dongbu Insurance Co. (-4.89%) and CNinsure Inc. (-4.71%).

The Global Reinsurance Index (AMBGR) closed at 1003.30 (-0.49%). Leading the AMBGR were Singapore Reinsurance Corp. (+5.00%) and Hannover Rueckversicherungs AG (+2.23%). Trailing the AMBGR were Amlin plc (-4.56%) and Catlin Group (-3.05%).

The Global Broker Index (AMBGB) closed at 1028.98 (-0.58%). Leading the AMBGB were AmTrust Financial Services Inc. (+1.03%) and Advance Create Co. (0.00%). Trailing the AMBGB were CNinsure Inc. (-4.71%) and Jardine Lloyd Thompson Group plc (-3.18%).

The Global Multi-Line Insurance Index (AMBGML) closed at 650.51 (-1.52%). Leading the AMBGML were Hannover Rueckversicherungs AG (+2.23%) and AIG (+0.29%). Trailing the AMBGML were Hartford Financial Services Group (-6.76%) and First Acceptance Corp. (-5.19%).

The Global Nonlife Insurance Index (AMBGNL) closed at 1057.68 (-0.62%). Leading the AMBGNL were 21st Century Holding Co. (+18.73%) and Singapore Reinsurance Corp. (+5.00%). Trailing the AMBGNL were Hiscox (-5.39%) and NYMagic (-5.34%).

The Global Life Insurance Index (AMBGL) closed at 774.80 (-1.83%). Leading the AMBGL were National Western Life Insurance (+1.60%) and Old Mutual plc (+0.82%). Trailing the AMBGL were Independence Holding Co. (-7.00%) and Genworth Financial (-6.28%).

The U.S. Property/Casualty Index (AMBUPC) closed at 1063.15 (-0.32%). Leading the AMBUPC were 21st Century Holding Co. (+18.73%) and Gainsco (+4.98%). Trailing the AMBUPC were NYMagic (-5.34%) and First Acceptance Corp. (-5.19%).

The U.S. Multi-Line Insurance Index (AMBUML) closed at 201.97 (-2.81%). Leading the AMBUML were American International Group Inc. (+0.29%) and Unitrin (+0.15%). Trailing the AMBUML were Hartford Financial Services Group (-6.76%) and Assurant (-3.54%).

The U.S. Life Insurance Index (AMBUL) closed at 816.80 (-2.05%). Leading the AMBUL were National Western Life Insurance (+1.60%) and Reinsurance Group of America Inc. (+0.37%). Trailing the AMBUL were Independence Holding Co. (-7.00%) and Genworth Financial (-6.28%).

The U.S. Life and Health/HMO Insurance Index (AMBULH) closed at 803.39 (-2.06%). Leading the AMBULH were National Western Life Insurance (+1.60%) and Reinsurance Group of America Inc. (+0.37%). Trailing the AMBULH were Independence Holding Co. (-7.00%) and Genworth Financial (-6.28%).

The U.S. Health and HMO Index (AMBUH) closed at 781.02 (-2.07%). Leading the AMBUH were Triple-S Management Corp. (+0.18%) and United American Healthcare (0.00%). Trailing the AMBUH were UnitedHealth Group (-3.73%) and Health Net (-3.61%).

The U.S. Insurance Brokers Index (AMBUB) closed at 939.13 (-0.44%). Leading the AMBUB were AmTrust Financial Services Inc. (+1.03%) and Insure.com (0.00%). Trailing the AMBUB were Life Partners (-1.99%) and eHealth Inc. (-1.48%).

Performance rankings of companies in each A.M. Best insurance sector index are published weekly in BestWeek.

The A.M. Best stock indexes cover 204 publicly traded insurance companies and brokers. Index values are calculated by Dow Jones Indexes in U.S. dollars. Companies in the A.M. Best stock indexes include insurers and insurance-related organizations with credit ratings from A.M. Best, along with brokers. A.M. Best does not provide investment recommendations. A listing of companies in each A.M. Best Index is available at http://www.ambest.com/stocks.

"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. The Board is cognizant of its fiduciary duties to the shareholders, and such duties do not require the company to engage in a process to sell itself to an unsolicited opportunistic bidder.

I appreciate that you recognize the tremendous value inherent in 21st Century, which is not currently reflected in the market price of our common stock. You are correct in noting that 21st Century has a growth strategy and a broad array of licenses outside of Florida that offer attractive growth opportunities. As you know, 21st Century is a seasoned company with an 11-year track record as a public company, with a sound business model and strategic plan. As you may also be aware, 21st Century expects significant revenue growth in 2010, with recent approvals from the Florida Office of Insurance Regulation for an approximately nineteen percent (19%) premium rate increase statewide for our homeowner's program with the state of Florida commencing on certain policies on November 1, 2009, and to assume up to an additional 45,000 policies from Citizens Property Insurance Corporation. 21st Century is proud to have partnered with over 300 independent agents in the state of Florida that actively sell and service our products, as well as 9 general agents in multiple states. In addition, there are 3,100 agents in Florida that are appointed to service our takeout policies from Citizens. 21st Century has improved its investment portfolio management with a new team of professional independent advisers this past year and has a strong, highly liquid balance sheet.

By contrast, our impression of Homeowners Choice is quite different. Homeowners Choice is only writing property and casualty insurance in the state of Florida. Homeowners Choice, as only a two-year old company, is untested against an active wind season in Florida. Combining with Homeowners Choice would be a strategic step backwards for 21st Century, which has been and continues to diversify its business lines and geographic markets.

We believe this is simply an opportunistic attempt to acquire 21st Century's valuable licenses and portfolio and enhance Homeowners Choice's balance sheet at the expense of 21st Century's shareholders. While it may be beneficial for Homeowners Choice shareholders for the company to cheaply acquire 21st Century's licenses for auto and general liability insurance and licenses to write business in states outside of Florida, the combination does not add strategic value or diversification for 21st Century shareholders.

Even if there were a potential compelling strategic merit to a proposed combination of the two businesses from 21st Century's standpoint, the financial terms you contemplate were found to be wholly inadequate by the Board of Directors.

The cash portion of the purchase price you propose is only $1 per share. Ignoring Homeowners Choice's assets, we note that 21st Century has sufficient unrestricted cash on its own balance sheet to fund that portion of the purchase price, so it is no wonder that the proposed offer contains no financing contingency. You are effectively asking 21st Century shareholders to finance the cash portion of the sale from their company's own assets. 21st Century is today announcing a $4 million stock repurchase program (approximately 10% of our market capitalization) in order to provide similar value directly to our own shareholders.

Your proposal contemplates that 80% of the consideration to be paid to 21st Century shareholders would be in the form of Homeowners Choice common stock, at an exchange rate of 0.5 share of Homeowners Choice per one share of 21st Century. Based on the assumption in your proposal of a market price of $8 per share for Homeowners Choice stock, that values 21st Century at approximately $40 million, or roughly $5.30 per share. That is 52% below the $9.68 book value per share of 21st Century common stock as of June 30, 2009, and well below valuations reviewed by the 21st Century Board of Directors on a variety of financial analyses presented by the Board's independent financial adviser.

In addition, Homeowners Choice stock is highly volatile. Homeowners Choice stock currently trades at a premium to the industry multiples, in excess of its book value, near its 52 week high, and is up over 70% in the last six months. Any value contained within this proposal is highly contingent on the ability of Homeowners Choice to maintain its relatively high stock price, which would present a risk to 21st Century shareholders. While I respect your desire to stabilize and grow your company, it should not come at the expense of 21st Century's shareholders.

In light of the above considerations and others, following discussions at length with outside financial advisors and legal counsel, the Board of Directors of 21st Century unanimously determined that the unsolicited proposal of Homeowners Choice is wholly inadequate and not in the best interests of the shareholders of 21st Century. The Board is convinced that pursuing 21st Century's existing strategic growth plan will enable 21st Century's shareholders to realize the inherent value of 21st Century. The Board of Directors declines the opportunity to engage in discussions at this time, and frankly, does not believe the investment of further resources at this time would be productive.

 On behalf of the Board of Directors,

 /s/ Bruce Simberg
 Bruce Simberg,
 Chairman of the Board

About 21st Century Holding Company

21st Century Holding Company (the "Company"), through its subsidiaries, underwrites commercial general liability insurance, homeowners' property and casualty insurance, flood insurance, personal automobile insurance and commercial automobile insurance in the State of Florida. The Company underwrites general liability coverage as an admitted carrier in the states of Alabama, Louisiana and Texas for more than 300 classes of business, including special events. The Company is approved to operate as a surplus lines/non-admitted carrier in the states of Arkansas, California, Georgia, Kentucky, Maryland, Missouri, Nevada, Oklahoma, South Carolina, Tennessee, and Virginia and offering the same general liability products. The Company is licensed and has the facilities to market and underwrite other insurance carriers' lines of business, as well as to process and adjust claims for third party insurance carriers. In addition to insurance services, the Company offers premium finance services to its insureds as well as insureds of certain third party insurance companies. For more information please visit www.21stcenturyholding.com.

21st Century Advisers

Hyde Park Capital Partners, LLC is acting as a financial adviser to the Company. Akerman Senterfitt is acting as legal counsel to the Company.

Forward-Looking Statements

Statements in this press release that are not historical fact are forward-looking statements that are subject to certain risks and uncertainties that could cause actual events and results to differ materially from those discussed herein. Without limiting the generality of the foregoing, words such as "may," "will," "expect," "believe," "anticipate," "intend," "could," "would," "estimate," or "continue" or the other negative variations thereof or comparable terminology are intended to identify forward-looking statements. The risks and uncertainties include, without limitation, the success of the Company's new premium growth initiatives; its ability to successfully market and sell new insurance products; its ability to sell its insurance products in new geographic markets and increase sales in existing markets; changes in economic conditions (including changes in interest rates and financial markets); the impact of new regulations adopted in Florida which affect the property and casualty insurance market; the costs of reinsurance and the collectability of reinsurance, assessments charged by various governmental agencies; pricing competition and other initiatives by competitors; the Company's ability to obtain regulatory approval for requested rate changes, and the timing thereof; legislative and regulatory developments; the success of the Company's stock repurchase plan in improving shareholder value; outcome of litigation pending against the Company or which is commenced against the Company after the date hereof, including the terms of any settlements; risks related to the nature of the Company's business; dependence on investment income and the Company's ability to improve the yields received from its investment portfolio; the adequacy of the Company's liability for loss and loss adjustment expense; claims experience; ratings by industry services; catastrophe losses; reliance on key personnel; weather conditions (including the severity and frequency of storms, hurricanes, tornadoes and hail); changes in driving patterns and loss trends; acts of war and terrorist activities; court decisions and trends in litigation, and health care and auto repair costs; and other matters described from time to time by us in our filings with the SEC, including, but not limited to, the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2008. In addition, investors should be aware that generally accepted accounting principles prescribe when a company may reserve for particular risks, including litigation exposures. Accordingly, results for a given reporting period could be significantly affected if and when a reserve is established for a major contingency. Reported results may therefore appear to be volatile in certain accounting periods. The Company undertakes no obligations to update, change or revise any forward-looking statement, whether as a result of new information, additional or subsequent developments or otherwise.

This news release was distributed by GlobeNewswire, www.globenewswire.com

SOURCE: 21st Century Holding Company

CONTACT:  The Abernathy MacGregor Group
Media
Chuck Burgess, Mike Pascale or Carina Davidson
(212) 371-5999
21st Century Holding Company
Investors
Becky Campillo
(954) 308-1257

In the letter addressed to Bruce Simberg, board chairman of 21st Century, Homeowners Choice Board Chairman Paresh Patel proposes to offer $1.00 in cash and 0.5 share of Homeowners Choice common stock for each share of 21st Century common stock. Based upon HCI's Oct. 9, 2009 closing price of $8.60, the proposed offer values 21st Century shares at $5.30 per share, a premium of approximately 36 percent over 21st Century's Oct. 9, 2009 closing price of $3.89.

"We believe a combination of the two companies would create a premier Florida-based insurance company mutually benefitting our companies, shareholders and employees while creating an entity stronger and better able to pursue growth," commented Patel. "We hope that the 21st Century board will exercise its fiduciary duties and engage in a complete and careful review of our expression of interest and give it the serious consideration it deserves. We believe the business combination is in the best interests of all stockholders and look forward to a prompt and favorable reply from the 21st Century board so Homeowners Choice can proceed on a mutually acceptable and friendly basis."

Following is the complete text of the letter from Patel to Simberg.

 October 12, 2009


 Mr. Bruce Simberg, Chairman
 21st Century Holding Company
 3661 West Oakland Park Boulevard, Suite 300
 Lauderdale Lakes, Florida 33311

 Dear Mr. Simberg:

      As you will no doubt recall, I contacted you via telephone
 earlier in the summer wishing to meet with you to discuss a
 potential combination of Homeowners Choice, Inc. ("HCI") and 21st
 Century Holding Company ("21st Century").  You indicated that if
 we had interest we should make a formal offer and your board would
 consider it.

      By letter dated August 20, 2009, we made a preliminary
 proposal to 21st Century in which we outlined the nature of the
 proposed merger as well as its potential benefits.

      Some days after our letter, I attempted to follow up to see
 if we could provide any further information or clarification to
 our proposal.  On September 4, 2009 we received a letter from
 Michael Braun, 21st Century's Chief Executive Officer and
 President, in which he expressed your board's intention not accept
 our preliminary proposal.

      We were disappointed to receive the letter because any
 serious consideration of our proposal should have entailed at
 least one conversation between the two companies.  As stated in
 our August 20, 2009 letter, we believe a combination of our two
 publicly-held companies would create a premier Florida-based
 insurance company mutually benefitting our companies, shareholders
 and employees. We would expect such combination of the companies
 to generate the following benefits:

        a. PROFITABILITY AND GROWTH. We understand 21st Century is
           trying to increase the policy count and geographic
           distribution of its homeowners' policies in Florida.
           HCI has demonstrated the capability to grow policy count
           rapidly while maintaining underwriting standards and
           profitability.  In two years HCI has grown from zero to
           60,000 policyholders. HCI already has 3,000 agencies
           under contract throughout Florida. HCI has been
           profitable for eight consecutive quarters. The same
           efficient, profitable growth strategy could be applied
           to the Federated National subsidiary of 21st Century.

        b. EXPANSION. 21st Century has a broad array of licenses to
           be exploited.  While HCI has focused on the Florida
           homeowners' insurance market, 21st Century has licenses
           for other lines of business and other states beyond
           Florida.  We believe that your licenses coupled with our
           cash and marketing capability would enhance the growth of
           these business lines and territories.

        c. SHAREHOLDERS. Combined, our companies would have an
           enterprise value in excess of $120 million, which would
           be beneficial to all shareholders.  At that valuation
           the combined entity would have a more liquid stock with
           sufficient float and trading volume to attract
           institutional investors.

        d. POLICYHOLDERS. Your corporate location and staffing in
           the south Florida tri-county area, combined with our
           current location in the Tampa Bay area, would be perfect
           to serve the two largest markets in Florida.  Your
           location could be used to service the south Florida
           region, while our location would service the
           Interstate-4 corridor.  Furthermore, the two locations
           could serve as backup locations to each other in the
           event of a hurricane.

        e. INVESTMENTS.  Unlike 21st Century, HCI has managed its
           investment portfolio with no mark-to-market losses from
           inception and could, we believe, add value to the 21st
           Century portfolio.

      Perhaps you did not have adequate time to review our proposal
 when it was made.  Therefore we are renewing our offer as outlined
 below.  The good news is that our share value continues to go up
 and the proposal is worth about 20 percent more than when it was
 first tendered.

      HCI is pleased therefore to present the following preliminary,
 non-binding indication of interest in exploring a merger of 21st
 Century with HCI (the "Merger").

      1.  Merger Consideration. Based on our review of 21st
   Century's publicly available information, HCI is prepared to
   offer as merger consideration $1.00 in cash plus 0.5 shares
   of HCI common stock per share of 21st Century common stock,
   or approximately $40 million, assuming a price of $8 per
   share of HCI common stock and approximately 8,013,894 shares
   of 21st Century common stock, (including all in-the-money
   options, restricted stock and restricted stock units, if any).
   This proposed offer would assume that no dividends, stock
   issuances, stock rights issuances or other dilutive
   securities or other actions would be taken to impair the
   equity value or net worth of the company.  This proposed
   offer would assume also that all outstanding stock options
   are out-of-the-money and would be cancelled.

      HCI possesses the cash portion of the merger consideration,
   and, consequently, the proposed offer would contain no financing
   contingency.

      With access to your management team and 21st Century's
   advisors, we believe we could substantially complete our initial
   business and legal due diligence review on 21st Century within
   three to four weeks. Upon completion of the initial business and
   legal due diligence, we are confident that we could complete our
   confirmatory due diligence review and execute definitive
   transaction agreements within three to four additional weeks. We
   are prepared to make the Merger our highest priority and to
   dedicate the resources necessary to complete the transaction
   expeditiously.

      Last, HCI's knowledge of 21st Century and experience within
   the property and casualty insurance business provides 21st
   Century a high degree of certainty that HCI will complete its
   Due diligence quickly and consummate the Merger.

      2.  Required Approvals and Timing. HCI's Board of Directors
   has reviewed this letter and authorized us to proceed with this
   non-binding indication of interest.  We would expect that the
   closing of the Merger would be contingent, among other things,
   upon:

          a. Receipt of approval from HCI's shareholders for the
             issuance of the portion of the merger consideration
             comprised of shares of HCI common stock.

          b. Receipt of all required third party consents and
             regulatory approvals.

          c. Execution of mutually acceptable definitive
             documentation containing customary representations,
             warranties, covenants and other provisions and
             conditions typical for this type of transaction.

          d. Receipt of approval from and continuous recommendation
             in favor of the Merger by 21st Century's Board of
             Directors, and any independent committee established
             for the purpose of evaluating the Merger, and approval
             from 21st Century's shareholders.

          e. Other closing conditions usual and customary for
             transactions of this type.

      3.  Governing Law. Should this letter become the subject of
   judicial interpretation, it shall be governed by the laws of the
   State of Florida without regard to the conflicts of law
   provisions thereof.

      4.  Exclusivity. Because of the considerable expense that we
   will incur in connection with our due diligence review and the
   time, effort and resources required to confirm our proposed
   offer and negotiate a definitive agreement, we request that 21st
   Century enter into a separate exclusivity agreement granting HCI
   a 60-day period to complete its due diligence review and
   negotiate the definitive agreement. We are prepared to send you
   a form of exclusivity agreement for your consideration.

      5.  Non-binding. This letter is merely a preliminary
   indication of interest in exploring a merger transaction. This
   letter and the proposals it contains are not and shall not be
   legally binding and are subject to, among other things, the
   negotiation of the final definitive agreement as well as the
   final approval by the shareholders of both 21st Century and HCI.
   Accordingly, nothing in this letter obliges HCI to undertake the
   proposal contemplated herein or take any other action.

      6.  Expiration. This indication of interest will expire at
   the close of business on Monday, November 2, 2009.  We hope to
   receive a positive response from you before then.

      I am hoping that this renewed expression of interest is
 seriously considered and reviewed.  We are therefore disclosing
 publicly our expression of interest as a means to encourage and
 further such consideration and review.

      There is much to consider, including the appropriate
 structure of the combination to minimize tax and other
 consequences. We look forward to discussing this letter with you.
 Please do not hesitate to contact us at any time should you have
 any questions. Thank you for your consideration.

                                   Very truly yours,



                                   Paresh Patel
                                   Chairman of the Board

About Homeowners Choice, Inc.

Homeowners Choice, Inc. is a Florida-based insurance holding company headquartered in Clearwater. Through its subsidiary corporations, Homeowners Choice provides property and casualty homeowners' insurance, condominium owners' insurance and tenants' insurance solely to Florida property owners. Founded in 2006, Homeowners Choice today serves approximately 60,000 policyholders throughout Florida representing approximately $100 million in annualized premiums. The company's common shares trade on the NASDAQ Global Market under the ticker symbol HCII and were recently added to the Russell Microcap Index. Warrants trade on the same market under the ticker symbol HCIIW. More information about Homeowners Choice, Inc. is available at www.hcpci.com.

The Homeowners Choice, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=6712

Forward-Looking Statements

This news release may contain forward-looking statements made pursuant to the Private Securities Litigation Reform Act of 1995. Words such as "anticipate," "estimate," "expect," "intend," "plan" and "project" and other similar words and expressions are intended to signify forward-looking statements. Forward-looking statements are not guarantees of future results and conditions but rather are subject to various risks and uncertainties. For example there can be no assurance that net premiums earned will decline and our loss ratio will increase during the remaining months of 2009, that our underwriting results will remain profitable or that the number of our policies will decline through the third quarter of 2009. Some of these risks and uncertainties are identified in the company's filings with the Securities and Exchange Commission. Should any risks or uncertainties develop into actual events, these developments could have material adverse effects on the company's business, financial condition, and results of operations. Homeowners Choice, Inc. disclaims all obligations to update any forward-looking statements.

Additional Information

This communication does not constitute an offer to buy or a solicitation of an offer to sell any securities. Subject to future developments, additional documents regarding a transaction with 21st Century may be filed with the Securities and Exchange Commission ("SEC") and, if and when available, would be accessible for free at the Commission's website at http://www.sec.gov. Investors and security holders are urged to read such disclosure documents, if and when they become available, because they will contain important information.

No assurance can be given that the proposed transaction described in this release will be successfully completed, or completed on the terms proposed.

This news release was distributed by GlobeNewswire, www.globenewswire.com

SOURCE: Homeowners Choice, Inc.

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