Allied Life: Applauds Favorable Court Ruling

 

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                                              Joele Frank /Dan Katcher
                                              Abernathy MacGregor Frank
                                              (212) 371-5999
                                        
                                             
                   ALLIED LIFE APPLAUDS FAVORABLE COURT RULING


DES MOINES, JULY 17, 1998 --ALLIED Life Financial Corporation, (NASDAQ:ALFC)
applauded the favorable ruling received today by ALLIED Mutual Insurance
Company in Iowa District Court for Polk County in the litigation Rieff vs.
Evans, et al.  The Court ruled it will not grant plaintiff's motion to stop the
proposed merger of ALLIED Mutual Insurance Company with Nationwide Mutual
Insurance Company.

"We are pleased with the Court ruling.  We believe that ALLIED Mutual's Board
of Directors acted appropriately in negotiating a merger agreement with
Nationwide that the Board believes is in the best interest of policyholders,"
said Sam Wells, President of ALLIED Life Financial Corporation, adding "our
merger process is moving forward and we look forward to ALLIED Mutual's Special
Meeting of  Policyholders scheduled to be held on July 28, 1998 and to the
public hearing scheduled to be held on July 29, 1998 before the Iowa
Commissioner of Insurance and the Attorney General." 

In permitting the merger to proceed, the Court stated no evidence was presented
that the proposed merger is not in the best interest of ALLIED Mutual's
policyholders.

ALLIED Life Financial Corporation is a holding company that, through its
principal subsidiary, ALLIED Life Insurance Company, underwrites, markets and
distributes life insurance and annuity products in rural and suburban areas of
the United States. 




Ends.