Seibels Bruce Group, Graward Settle Litigation

The Seibels Bruce Group has reached a settlement with the sellers of Graward General Companies related to an acquisition dispute.

In the settlement, Graward agreed to cancel four Subordinated Purchase Notes dated May 1, 1998 in the aggregate face amount of $2.7 million and to forgive all indebtedness for principal and interest thereunder. Seibels Bruce in turn agreed to dismiss a pending motion and an arbitration demand.

Additionally, Seibels Bruce agreed to provide the Sellers warrants for 25,000 shares of Seibels Bruce common stock with an exercise price of $3.00 per share, and warrants for 25,000 shares of Seibels Bruce common stock with an exercise price of $7 per share.