Nebraska Department of Insurance

PRESS RELEASES AND NOTICES

Amwest Surety Insurance Company Declared Insolvent

June 7, 2001

Today, Lancaster District Court Judge John A. Colborn entered an order for the liquidation of Amwest Surety Insurance Company, a Nebraska domiciled insurer based in Calabasas, California. The liquidation order is based on a finding by Nebraska Director of Insurance, L. Tim Wagner, that Amwest is insolvent. Amwest specialized in underwriting various types of bonds, including bail and contracting. Approximately 40,000 bonds, exclusive of bail bonds, are in the process of being terminated in accordance with Nebraska statutes. It is estimated that 200 of the affected bonds were issued to Nebraska residents. The liquidator is proceeding with plans to implement the transfer of remaining bail bonds business to Far West Insurance Company, a subsidiary of Amwest. Director Wagner, as liquidator, expects to offer Far West for sale. Mr. Mike FitzGibbons will serve as special deputy liquidator, and will direct the liquidation from Amwest's Calabasas office.

Further information is available on the Department of Insurance web site found at www.nol.org/home/ndoi/notice/notice51.htm.