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Company Description We are a growing producer and provider of non-standard automobile insurance policies to individual consumers in highly targeted geographic markets. Non-standard personal automobile insurance policies provide coverage to drivers who find it difficult to obtain insurance from standard insurance companies due to their lack of prior insurance, age, driving record, limited financial resources or other factors. These policies generally require higher premiums than standard policies for comparable coverage. We currently offer our products and services in 11 states, including Texas, Illinois and California. Based upon the most current industry data compiled by A.M. Best Company, Inc., the 11 states in which we operate collectively represent approximately 50.0% of the non-standard personal automobile insurance market, or approximately $15.8 billion in direct premiums written in 2002. ------- Our principal executive office is located at 4450 Sojourn Drive, Suite 500, Addison, Texas 75001, and our telephone number is (972) 728-6300. Our website address is www.affirmativeholdings.com.

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