AssuranceAmerica CORPORATION Announces First Policy in Mississippi

Business Wire, May 10, 2007

ATLANTA -- ASSURANCEAMERICA CORPORATION (OTCBB: ASAM), an Atlanta based insurance holding company with operations in the Southeastern United States announced today that AssuranceAmerica Insurance Company wrote its first auto insurance policy in the state of Mississippi. While its insurance company or managing general agency (MGA) is licensed to write in eleven states, Mississippi becomes the seventh state in which AssuranceAmerica actually conducts business.

In announcing its newly initiated sales effort in Mississippi, Lawrence (Bud) Stumbaugh, President and CEO of AssuranceAmerica Corporation, the parent holding company of its insurance carrier and MGA, said "While Mississippi's total automobile premium volume is relatively small compared to other states in which we write, it is attractive because it is growing, the state has a history of generating profits in our niche, and it

adds to our geographic diversity. We are pleased to announce our first policy, but even more thrilled that we actually added multiple policyholders in the very first week of business in Mississippi."

AssuranceAmerica focuses on the specialty automobile insurance marketplace, primarily in Alabama, Florida, Georgia, South Carolina, Texas, Louisiana, and Mississippi. Its principal operating subsidiaries are TrustWay Insurance Agencies, LLC ("Agency"), which sells personal automobile insurance policies through its 47 retail agencies, AssuranceAmerica Managing General Agency LLC ("MGA"), which markets the company's insurance products through over 1,500 participating independent agencies, and AssuranceAmerica Insurance Company ("Carrier").

This press release includes statements that may constitute "forward-looking" statements. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements, as discussed in the Company's filings with the U.S. Securities Exchange Commission (SEC). Historical results are not indicative of future performance.