SOURCE: Financial Industries Corporation

December 29, 2006 16:05 ET

Financial Industries Corporation Completes Sale of Family Life Subsidiary to Manhattan Life

AUSTIN, TX -- (MARKET WIRE) -- December 29, 2006 -- Financial Industries Corporation (PINKSHEETS: FNIN) today announced that it has completed the previously announced sale of its wholly owned subsidiary, Family Life Insurance Company, to The Manhattan Life Insurance Company following receipt of approval for the transaction from the Texas Department of Insurance.

The cash purchase price for Family Life was $28.0 million, subject to certain post-closing adjustments. As part of the transaction, FIC acquired from Family Life 324,320 shares of the FIC common stock that was owned by Family Life. Proceeds from the sale will be used to improve FIC's capital structure by retiring approximately $15.4 million of intercompany debt and for general corporate purposes.

FIC, through its various subsidiaries, markets and underwrites individual life insurance products. For more information on FIC, go to http://www.ficgroup.com on the Internet.

Manhattan Life is a member of the Manhattan Insurance Group (MIG). MIG offers reinsurance/acquisition facilities to the life/health industry. Direct marketing activities include worksite marketing in North America and dollar-denominated life insurance distribution throughout Latin and South America.

The investment banking firm of Keefe, Bruyette & Woods, Inc. advised FIC on the transaction.

As provided by the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995, FIC cautions that the statements in this press release that are not historical factual information are forward-looking statements that represent management's belief and assumptions based on currently available information. The information contained in this press release relating to trends in the company's operations and the contingencies and uncertainties to which the company may be subject, as well as other statements including words such as "anticipate," "cautions," "believe," "plan," "estimate," "expect," "intend," and other similar expressions constitute forward-looking statements. Such statements are made based upon management's current expectations and beliefs concerning the financial results, and economic conditions and are subject to known and unknown risks, uncertainties and other factors contemplated by the forward-looking statements, including timing and results of audits and reviews, general economic conditions, customer response, performance of management team and other factors described in the company's Form 10-K for the year ended Dec. 31, 2004. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated. Investors should not place undue reliance on forward-looking statements. Each forward-looking statement speaks only as of the date of the particular statement, and the company undertakes no obligation to publicly update or revise any forward-looking statements.

Contact Information

  • Contact Information:
    Financial Industries Corporation
    Shannon Coffin
    Phone: 512-404-5128
    E-mail: Email Contact