PLANTATION, Fla., Sept. 2 /PRNewswire/ -- 21st Century Holding Company (Nasdaq: TCHC), a vertically integrated insurance holding company, announced today the acquisition of 80% of the outstanding common stock of Express Insurance and Tax Service, Inc. ("Express Tax Service"). Express Tax Service licenses its brand name and its software to retail tax preparers and over the Internet in a growing number of states including Florida, Georgia, South Carolina, Oklahoma, Texas, Nebraska and Colorado.

In making the announcement, Edward Lawson, President and CEO of 21st Century Holding Company said, "We are very excited and pleased with this acquisition as it gives us another excellent product which complements our growing list of financial services. We now have not only insurance products but also tax preparation and electronic tax filing, premium financing, advance payday and consumer loans and additional products to be introduced with the opening of our bank in 2000 (subject to regulatory approval). In the future we plan on becoming a licensor of financial service products to independent and captive insurance agents across state lines. With this acquisition, we've added a significant customer base with which we can market our products."

Robert Kluba, President of Express Tax Service, stated, "Our alliance with 21st Century gives us the financial clout to continue our expansion nationwide and become one of the largest tax service providers in the country. Last year, 200 tax preparation providers prepared approximately 20,000 returns using Express Tax Service's software. We expect to more than double those figures this tax season."

"By the year 2006, the IRS wants over 100 million people or 80% of all individual taxpayers to file electronically. We are in excellent position to capture a portion of this expanding market," stated Mr. Kluba.

"Express Tax Service is dedicated to providing customers with comprehensive tax software that is easy to use and backed by fully trained support staff. We offer complete training seminars as well as marketing and advertising strategies. Our marketing strategies provide our customers with television and radio ads, banners, mailers and more," Mr. Kluba further stated.

21st Century Holding Company manages its insurance underwriting, distribution and claims process through its subsidiaries. The Company underwrites standard and non-standard personal automobile insurance and mobile home, property and casualty insurance in the state of Florida through its subsidiary, Federated National Insurance. The Company also has underwriting authority for third-party insurance companies, which it represents through a wholly owned managing general agent, Assurance Managing General Agents, Inc. Claims made by Federated National's insured are internally processed by 21st Century Holding Company through a wholly owned claims adjusting company, Superior Adjusting, Inc. 21st Century Holding Company also offers premium financing to its own and third party insured through a wholly owned subsidiary, Federated Premium Finance, Inc. In addition, the Company offers other ancillary services including electronic income tax filing through Federated Agency, Inc., also a wholly owned subsidiary.