ULLICO Inc. Reports Second Quarter 2007 Net Income of $5.3 Million and Solid Operating Earnings of $5.4 million.

WASHINGTON,DC,August 25,2007 - ULLICO Inc.,the labor owned multi-line holding company offering insurance and investment products and services,today reported net income of $5.3 million for the quarter ended June 30,2007,compared to $4.1 million in the same quarter of the prior year. Pre-tax operating income for the current quarter excluding non-recurring transactions was $5.4 million,compared to $2.9 million in the prior year's quarter.

Highlights for the quarter:

• The Life and Health Business Unit contributed strong pre-tax earnings of $2.1 million due to favorable claims development and premium growth in the Medical Stop Loss and Group Life lines of business.
• The Property and Casualty Business Unit generated solid earnings of $2.0 million due to strong sales in its Fiduciary and Union Liability lines and favorable claims activity within its Fiduciary line.
• Investment Services earnings remain strong at $3.9 million due to continued growth in assets under management within the J for Jobs Fund and our new USA Realty Fund.

The Life and Health Business Unit continued its positive momentum with strong earnings led by the core Medical Stop Loss line of business. The claims experience related to this line continues to be below our pricing expectations and revenue has increased 39% over the same period last year. Revenue in other continuing lines under the Life and Health business unit increased 6% over the same period last year.

ULLICO's Property and Casualty Business Unit produced operating results of $2.0 million as compared to $3.2 million for the same period last year. Core earnings on the Fiduciary line of business continue to be strong as reported claims on business written since 2004 has consistently been below pricing expectations. The higher operating results in 2006 were largely due to favorable reserve development in our Union Liability and Workers' Compensation lines of business. No such development occurred during the current year quarter.

Net earned premium increased by 21% to $8.2 million compared to $6.8 million in the same prior year within the major business lines of Fiduciary,Union Liability and Workers' Compensation.

Our Investment Services Business Unit,which includes the management of the flagship J for Jobs account; USA Realty Fund and our investment advisor,Trust Fund Advisors,produced earnings of $3.9 million as compared to $4.3 million in the same period last year. Although overall fee revenue was up 5% over the same period last year it was offset by an increase in benefits and general expense for the quarter as the company prepared for new product launches in the second half of 2007 and initial investments began for the expansion of its Retirement Services capabilities. The J for Jobs account reached a milestone during the second quarter,exceeding $3 billion in assets under management.

Year to Date Consolidated Results

Year-to-date consolidated operating income before non-recurring transactions was $8.7 million compared to $4.9 million in the prior year representing an increase of 77.6%. Contributing to the positive year-to date variance was the continued improvement in reducing corporate overhead and general expenses,favorable development in our claims experience in the insurance lines and continued growth in our assets under management.

Year-to-date consolidated net income rose to $8.6 million as of June 30,2007 from $5.6 million over the same period last year. There were no non-recurring transactions through the six months ended June 30,2007.

Premium and fee revenue for the first six months declined from $146.2 million in 2006 to $135.4 million in 2007. The decline is attributed to our group health line of business,as we anticipated when the Company made the decision in late 2006 to no longer actively market group health insurance to new customers. As a result,our health insurance in force business is declining as customers find more cost effective solutions elsewhere. Core revenue on the Company's continuing lines of business has produced growth of $5.5 million or 6% despite softening market conditions through the end of six months.

Mark Singleton,ULLICO President and CEO stated,"The revenue growth in our core lines of business from the second half of 2006,especially in our Medical Stop-Loss,Fiduciary and Union Liability lines of business is very encouraging along with the continued strong loss ratio results. We expect these trends to continue for the balance of the year."

"Great performance for the first half of the year! ULLICO continues to produce and exceeds my expectations despite the challenges in the marketplace. We appreciate all who actively support ULLICO by continuing to invest in the products and services that we provide to organized labor." stated Chairman Joseph Hunt.