Schwarz to Take CEO Job at Hallmark

Hallmark Financial Services Inc., based in Dallas, announced that president and chief executive officer Linda H. Sleeper will leave the company effective January 1, 2003. Hallmark’s Board of Directors elected board chairman Mark E. Schwarz to the additional position of Chief Executive Officer. Also effective January 1, 2003, Timothy A. Bienek, currently Executive Vice President, has been elected president and chief operating officer of the company.

Sleeper will be retained by the company as a part-time consultant through June of 2003 and will assist with the management transition. She also plans to complete her current term on Hallmark’s Board of Directors, which will expire in conjunction with the company’s Annual Shareholder’s Meeting in May of 2003.

“The management change reflects my desire to assume a more active role at Hallmark,” said Mark E. Schwarz, chairman of Hallmark Financial Services Inc. “I, as well as the entire Board of Directors, want to thank Linda for her service and acknowledge the positive contribution that she has made to the company.”

Schwarz is the General Partner of Newcastle Partners L.P. (“Newcastle”) which owns 47.8 percent of the outstanding common stock of Hallmark. In addition, Newcastle provided bridge financing to Hallmark for the company’s recent acquisitions.

Hallmark is engaged primarily in underwriting, marketing and financing non-standard automobile insurance in the State of Texas and in marketing commercial lines insurance in Texas, New Mexico, Idaho, Oregon and Washington.