The Board of Directors of Allcity Approves Proposed Tender Offer

April 10, 2003

Allcity Insurance Company announced that the Board of Directors, acting upon a unanimous recommendation by a Special Committee of Independent Directors, has approved a tender offer by Leucadia National Corporation to acquire the approximately 8.8 percent of Allcity outstanding shares it does not already own.

“Leucadia has agreed to make a tender offer for all the publicly held shares of Allcity common stock for $2.75 per share in cash. The tender offer will be subject to customary conditions, including a minimum condition that would require enough shares of Allcity’s common stock being tendered so that, together with the approximately 91.2% of Allcity’s outstanding shares that Leucadia currently beneficially owns, Leucadia would beneficially own at least 95% of the outstanding shares of Allcity’s common stock,” said the bulletin.

“Promptly following consummation of the tender offer and subject to the approval of the New York Insurance Department under Section 7118 of the New York State Insurance Law, Leucadia would beneficially acquire ownership of the outstanding shares of the Company not previously tendered at the same cash price as the tender offer,” it continued.

Leucadia has advised the Company that it intends to commence the tender offer as soon as practicable, although it said that “there can be no assurance that any such tender offer will in fact be commenced or consummated.”

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