GAINSCO Rights Offering Declared Effective by SEC

Dallas-based Gainsco Inc. announced that the registration statement for its previously announced common stock rights offering was declared effective on June 15, 2005, by the Securities and Exchange Commission.

Under the terms of the rights offering described in the prospectus contained in the registration statement, the Company is distributing non-transferable subscription rights to purchase in the aggregate up to 20,365,000 shares of its common stock at an offering price per share of $0.75 to persons who owned shares of its common stock of record on June 7, 2005. Each such holder of record will be entitled to one non-transferable subscription right for every three shares of common stock owned at the close of business on June 7, 2005. The subscription rights shall be exercisable until 5 p.m. ET, Aug. 19, 2005, unless the Company extends the offering. There is no over-subscription privilege in connection with this rights offering.

As soon as practicable, the Company expects to mail to holders of its common stock as of the close of business on the record date a prospectus and other items necessary for exercising the rights. The prospectus will contain a description of the rights offering and other information.

Questions from shareholders regarding the rights offering or requests for additional copies of the prospectus may be directed to our information agent, Morrow & Co. Inc., at (800) 607-0088.

Gainsco’s nonstandard personal automobile insurance products are distributed through retail agents in Arizona, California, Florida, Nevada and Texas. Its insurance company subsidiaries are General Agents Insurance Company of America Inc. and MGA Insurance Company Inc.