Capital Title Group Reports Strong Results in Third Quarter and for Nine-Month Period; 3rd Quarter - Earnings Increased 32%; 9-Months - Earnings Increased 49%

Business Wire, Oct 24, 2005

SCOTTSDALE, Ariz. -- Capital Title Group Inc. (Nasdaq: CTGI) -- named for a second consecutive year in FORTUNE'S 100 Fastest Growing Companies in America in 2005 -- is a national provider of title, appraisal and other transaction services to the real estate and mortgage lending industries. Reporting results for the third quarter and nine-month period ended Sept. 30, 2005, the company announced today it had reached a new record level for revenue and net income compared to prior years.

Earnings for the third quarter ended Sept. 30, 2005, increased 32% to $7.0 million, or $.28 per diluted share compared to earnings of $5.3 million or $.23 per diluted share for the third quarter ended Sept. 30, 2004. Revenue during the third quarter of 2005 increased $18.0 million to $97.1 million, an increase of 23% over revenue of $79.1 million in the third quarter of 2004. The third quarter results include a reduction to revenue of approximately $1.1 million related to a change in accounting for flood zone determinations provided through the company's lender services segment. This change resulted in a reduction of earnings per diluted share of approximately $.03 in the third quarter.

For the nine-month period ended Sept. 30, 2005, earnings increased 49% to $16.0 million, or $.66 per diluted share compared to earnings of $10.7 million or $.49 per diluted share for the nine-month period ended Sept. 30, 2004. Revenue for the nine-month period ended Sept. 30, 2005, was $282.2 million, an increase of 34% over revenue of $210.2 million in the same 2004 period.

"Capital Title's third quarter results demonstrate the continued growth of our traditional title and escrow services within the markets we already serve. These are gratifying results as we move forward on our growth strategy designed to enhance our national platform," said Donald R. Head, chairman, president and chief executive officer.

Headquartered in Scottsdale, Ariz., Capital Title Group Inc. through its subsidiaries offers services throughout the United States for title insurance, appraisal and valuation services, and other related services to residential and commercial customers in the real estate and mortgage lending industries. Subsidiary companies include Capital Title Agency, New Century Title Co., United Title Co., First California Title Co., Land Title of Nevada, CTG Real Estate Information Services, Nationwide Appraisal Services Corp., Nationwide TotalFlood Services Inc., NAC1031 Exchange Services, 1031 ExchangePoint Inc. and AdvantageWare -- with strategically located offices in Arizona, California, Nevada, Pennsylvania and Texas. The company is also licensed to issue and underwrite title insurance policies in Arizona, California, Nevada, New York, Pennsylvania and Texas through United Capital Title Insurance Co. The combined companies have in excess of 2,600 employees.

Visit our Web sites for more information on the company and its subsidiaries:

www.capitaltitlegroup.com                www.capitaltitle.com
www.newcenturytitle.com                  www.nationwide-totalflood.com
www.landtitlenv.com                      www.firstcal.com
www.nationwidesolution.com               www.unitedtitle.com
www.nascopgh.com                         www.awiware.com
www.nac1031.com                          www.1031exchangepoint.com

Certain statements in this release may be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may include projections of matters that affect revenue, operating expenses or net earnings; projections of capital expenditures; projections of growth; hiring plans; plans for future operations; financing needs or plans; plans relating to the company's products and services; and assumptions relating to the foregoing.

Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking information.

Some of the important factors that could cause the company's actual results to differ materially from those projected in forward-looking statements made by the company include, but are not limited to, the following: fluctuations in interest rates that can affect operating results, intense competition, past and future acquisitions, expanding operations into new markets, risk of business interruption, management of rapid growth, need for additional financing, changing customer demands, dependence on key personnel, sales and income tax uncertainty and increasing marketing, management, occupancy and other administrative costs.

These factors are discussed in greater detail in the company's Annual Report on Form 10-K for the year ended Dec. 31, 2004, as filed with the Securities and Exchange Commission.

CAPITAL TITLE GROUP INC. AND SUBSIDIARIES
                         SUMMARY OF OPERATIONS

                         FINANCIAL HIGHLIGHTS
                              (UNAUDITED)

                       THREE MONTHS ENDED         NINE MONTHS ENDED
                            Sept. 30,                 Sept. 30,
                   ------------------------- -------------------------
                        2005         2004         2005         2004
                   ------------------------- -------------------------
                          (in thousands, except per share data)

Revenue                $97,107      $79,070     $282,170     $210,155

Expenses                84,188       69,897      252,522      190,725
                   ------------------------- -------------------------
Income before
 income taxes           12,919        9,173       29,648       19,430


Income tax expense       5,520        3,488       12,596        7,642
                   ------------------------- -------------------------
Net income               7,399        5,685       17,052       11,788

  Dividends on
   preferred stock         353          353        1,048        1,052
                   ------------------------- -------------------------
Earnings
 attributable to
 common stock           $7,046       $5,332      $16,004      $10,736
                   ========================= =========================

Net Income per
 common share:

  Basic                  $0.32        $0.25        $0.73        $0.54

  Diluted                $0.28        $0.23        $0.66        $0.49

Weighted average
 number of common
 shares outstanding

  Basic             22,343,756   21,307,906   21,978,428   20,039,866

  Diluted           24,820,795   23,127,132   24,352,314   21,782,955