Homeowners Choice, Inc. Announces Mandatory Separation of Common Stock and Warrants

Business Wire, August 26, 2008

CLEARWATER, Fla. -- Homeowners Choice, Inc. (NASDAQ:HCIIU) announced today the mandatory separation of the common shares and warrants underlying its units, currently trading on The NASDAQ Global Market under the ticker symbol "HCIIU."

The company said it expects its common shares and warrants will begin separate trading on The NASDAQ Global Market under the symbols "HCII" and "HCIIW," respectively, on Monday, Sept. 15, 2008. According to the company, it notified NASDAQ today that the units will continue to trade on The NASDAQ Global Market under their current ticker symbol, "HCIIU," until immediately before underlying common shares and warrants are separated and then will be delisted from The NASDAQ Global Market.

About NASDAQ

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About Homeowners Choice, Inc.

Homeowners Choice, Inc. is a Florida-based insurance holding company. Its wholly-owned subsidiary, Homeowners Choice Property & Casualty Insurance Company, Inc., which began operations in June 2007, provides property and casualty homeowners' insurance, condominium owners' insurance and tenants' insurance to Florida property owners. On July 31, 2008, units comprised of one Homeowners Choice, Inc. common share and one warrant began trading on The NASDAQ Global Market under the ticker symbol "HCIIU." The company expects common shares and warrants will soon begin separate trading on The NASDAQ Global Market under the ticker symbols "HCII" and "HCIIW," respectively. The company's principal executive offices are located at 145 N.W. Central Park Plaza, Suite 115, Port St. Lucie, Florida. 34986, but it plans to move its headquarters to Clearwater, Florida in August 2008. More information about Homeowners Choice, Inc. is available at www.hcpci.com.

Forward-Looking Statements

This news release may contain forward-looking statements made pursuant to the Private Securities Litigation Reform Act of 1995. Words such as "anticipate," "estimate," "expect," "intend," "plan" and "project" and other similar words and expressions are intended to signify forward-looking statements. The forward-looking statements in this news release include statements regarding the company's expectations regarding when the company's common stock and warrants underlying the units will begin trading on The NASDAQ Global Market. Forward-looking statements are not guarantees of future results and conditions but rather are subject to various risks and uncertainties. Some of these risks and uncertainties are identified in the company's registration statement filed with the Securities and Exchange Commission. Should any risks or uncertainties develop into actual events, these developments could have material adverse effects on the company's business, financial condition, and results of operations. Homeowners Choice, Inc. disclaims all obligations to update any forward-looking statements.