CONTACT:
Timothy A. Bienek
President and COO
(817) 348 -1600
www.hallmarkgrp.com
FORT WORTH, Texas -- July 30, 2003 -- Hallmark Financial Services,
Inc. (Amex: HAF.EC), announced today that it has finalized the terms of its
previously announced rights offering.
Shareholders of record will receive one non-transferable subscription right
for each share of common stock they owned on the close of business on June 27,
2003, the record date. Each right contains a basic subscription privilege and
an over-subscription privilege. Each basic subscription privilege entitles the
shareholder of record to purchase 2.21 shares of Hallmark's common stock for
$0.40 per share. The over-subscription privilege entitles the shareholder of
record to subscribe for additional shares of Hallmark's common stock on a pro-rata
basis based on the number of shares purchased under the basic subscription privilege,
provided that the basic subscription privilege is fully exercised. The subscription
rights will expire if not exercised before 5:00 p.m., New York City time, on
August 29, 2003, unless extended by Hallmark.
On or about July 31, 2003, Hallmark will mail the prospectus and other related
materials to shareholders of record, as of the close of business on June 27,
2003. The complete terms and conditions of the rights offering are set forth
in the prospectus and accompanying subscription materials. Shareholders may
also obtain a copy of the prospectus by writing or telephoning, Hallmark Financial
Services, Inc., 777 Main Street, Suite 1000, Fort Worth, Texas, 76201, Attention:
Timothy A. Bienek, President and COO, (817) 348-1600. Shareholders who hold
their shares through a broker, bank or other nominee, should contact the broker,
bank or nominee for further information or to exercise their non-transferable
rights.
Neither Hallmark, its board of directors, nor any committee of the board of
directors is making any recommendation to shareholders as to whether to exercise
their subscription rights. This press release is for informational purposes
only and is not an offer to purchase or a solicitation of an offer to sell shares
of Hallmark's common stock. Shareholders should carefully read the prospectus
and related materials because they contain important information.
Hallmark Financial Services, Inc. engages primarily in the sale of property
and casualty insurance products. The Company's business involves marketing,
underwriting and premium financing of non-standard personal automobile insurance
primarily in Texas, Arizona and New Mexico, commercial insurance in Texas, New
Mexico, Idaho, Oregon and Washington, third party claims administration, and
other insurance related services. The Company is headquartered in Fort Worth,
Texas and its common stock is listed on the American Stock Exchange under the
symbol "HAF.EC".
Forward-looking statements in this Release are made pursuant to the "safe
harbor" provisions of the Private Securities Litigation Act of 1995. Investors
are cautioned that actual results may differ substantially from such forward-looking
statements. Forward-looking statements involve risks and uncertainties including,
but not limited to, continued acceptance of the Company's products and services
in the marketplace, competitive factors, interest rate trends, the availability
of financing, underwriting loss experience and other risks detailed from time
to time in the Company's periodic report filings with the Securities and Exchange
Commission.
For further information, please contact:
Timothy A. Bienek, President and COO at (817) 348-1600
www.hallmarkgrp.com
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Suite #1000