ULLICO Inc. Reports Fourth Quarter 2007 Net Income of $8.4 Million and Operating Income of $1.1 Million

Strong Operating Earnings for the Year of $12.0 Million and a Net Loss of $2.4 Million for the Year

WASHINGTON,DC (April 28,2008) - ULLICO Inc.,the labor owned multi-line holding company offering insurance and investment products and services,today reported net income of $8.4 million for the quarter ended December 31,2007,compared to net income of $7.0 million in the same quarter of the prior year. Pre-tax operating income for the current quarter excluding non-recurring transactions was $1.1 million,compared to $6.8 million in the prior year's quarter.

Highlights for the quarter:

• The Life and Health Business Unit contributed pre-tax earnings of $1.2 million for the quarter. The unit continued its positive momentum with solid earnings from the continuing lines of business. Revenue from continuing lines rose to $35.1 million in the current quarter compared to $29.5 million in same quarter in 2006,an increase of 19.0% due to strong sales from the Medical Stop Loss and Group Life lines of business. A.M. Best recently reaffirmed the B+ rating (Secure) and stable outlook for ULLICO' life insurance subsidiary,The Union Labor Life Insurance Company.
  
  
• The Property and Casualty Business Unit' net earned premiums grew by 39% for the quarter compared with the same quarter in 2006. This increase was due to the expansion into the Commercial lines of business (auto,general liability & property) and continued strong sales momentum in its Fiduciary,Union Liability,and Workers Compensation lines of business. The unit contributed a solid $1.1 million of earnings for the quarter. A.M. Best recently reaffirmed the B+ rating (Secure) of ULLICO' property and casualty insurance subsidiary,ULLICO Casualty Company,and improved the rating outlook from stable to positive.
  
  
• Retirement Services,which includes our Real Estate Investment Group,provided strong earnings of $4.3 million. Assets under management reached $5.5 billion at December 31,2007,driven primarily by a 20% increase from the prior year in our Separate Account J.
  
  
• The Company recognized a 4th quarter 2007 tax benefit in the amount of $7.7 million which was principally related to the release of a valuation allowance held with respect to deferred tax assets.
  
  

The Company's consolidated operating income before non-recurring transactions for the year was $12.0 million compared to $13.8 million in the prior year Contributing to the reduction in operating earnings in 2007 compared to 2006 was additional positive reserve development in 2006 in our Life and Health and Property and Casualty lines and a decrease in earnings in 2007 related to the run-off in various exited lines of business. These reductions were partially offset by an 8% decline in corporate overhead.

The consolidated net loss for 2007 was $2.4 million as compared to net income of $16.8 million for 2006. The primary reason for the decline in net income was the impact in the third quarter of an agreement between the Company and the U.S. Department of Labor to resolve an investigation into the fee arrangements for Separate Account J. The Department released potential claims in exchange for payments by Union Labor Life totaling $20.0 million (of which approximately $16.7 million has been returned to investors in Separate Account J and $3.3 million has been reserved for excise tax and required ERISA payments) and the implementation of a new,simplified fee structure.

Premium and fee revenue for the year declined to $272.0 million in 2007 from $287.8 million in 2006. The decline in premium,which was expected,is attributable to the Company' decision in late 2006 to no longer actively market fully insured group health insurance to new customers. As a result,our health insurance in force business declined throughout 2007 as we worked with customers to find more cost effective solutions. However,core revenue on the Company' continuing lines of business has produced growth of $20.3 million or 11% despite softening market conditions through much of the year.

Mark Singleton,ULLICO President and CEO stated,"Despite the one-time earnings charge of $20.0 million,ULLICO is still well positioned for continued growth in its core businesses. The year 2008 will present exciting opportunities for the Company as we implement our strategic plan,which includes new products and continued sales momentum in our continuing lines of business. Our capital and liquidity ratios remain strong. In addition,to bring clarity in our brand recognition in our market place,as indicated below,we have changed the names of several of our companies."

Chairman Joseph Hunt stated,"As we enter into 2008,ULLICO continues to provide value for the labor movement and the working men and women across this country. We are proud of the outstanding operating results for 2007 despite some adversities. ULLICO is on a strong foundation as it continues to grow in providing financial and retirement security for Labor."

Quarterly Financial Results at a Glance

2007 Year-To-Date Results at a Glance