Improve FIC Urges Financial Industries Corporation Shareholders to Vote for the Improve FIC Slate of Nominees; January 16, 2007 Adjournment of Financial Industries Corporation Meeting Set


AUSTIN, Tex., Jan. 5, 2007 (PRIME NEWSWIRE) -- John Fibiger and David Porter of Improve FIC have mailed to Financial Industries Corporation (FIC) shareholders a letter dated December 26 urging shareholders to vote "FOR" Improve FIC's nominees for election to the board at the January 16 adjournment of the meeting set for 10:00 a.m., local time, at the Renaissance Austin Hotel, 9721 Arboretum Blvd, Austin, Texas. Improve FIC's letter reads as follows:



 December 26, 2006

 Dear Fellow Financial Industries Corporation Shareholder:

 We are Improve FIC, a committee of concerned shareholders of
 Financial Industries Corporation (the "Company" or "FIC").  We
 previously sent you a proxy statement and GOLD PROXY CARD to be voted
 at the Company's December 6, 2006 Annual Meeting of Shareholders and
 at any adjournments, postponements, or rescheduling thereof (the
 "Annual Meeting").  The proxy statement and GOLD PROXY CARD detailed
 our proposals and set forth a slate of director nominees to be voted
 on at the Annual Meeting.  We asked you to support our proposals and
 to elect our nominees by voting your GOLD PROXY CARD prior to
 December 6, 2006.

 We are writing to inform you that FIC's Annual Meeting of
 Shareholders has been adjourned to January 16, 2007 at 10:00 a.m., as
 enforced by court order.  You still have time to join other
 shareholders in supporting our proposals, our nominees, and our plans
 for the Company's future by voting the enclosed GOLD PROXY CARD now.

           CAN YOU AFFORD TO TRUST THE CURRENT BOARD?

 Since being elected in July of 2003, FIC's current board has NEVER
 stood for re-election, and has NEVER held a shareholders' meeting.
 This is despite the fact that FIC's bylaws, and Texas state law,
 require FIC to hold shareholders meetings for the election of
 directors annually.

 While doing all it can to dodge a shareholders meeting, the incumbent
 board has taken a number of actions that Improve FIC believes have
 not been in the best interest of the Company or its shareholders.
 For example:

  *  In June, 2005, the Company sold its largest single asset,
     River Place Pointe, for $103 million.  The Company completed the
     sale without any evidence of putting the property on the market
     or soliciting competitive bids (no commercial real estate agent
     was engaged, and the property was never put in the MLS system).
     By pointing to the depreciation of the buildings on the Company's
     books, management claimed that the property was sold at a profit,
     but in reality, the sale price was lower than the original cost
     of the property.

  *  In December, 2006, the Company announced the sale of Family Life
     Insurance Company ("Family Life"), one of two insurance
     subsidiaries that combined constitute a majority of FIC's value.
     The announced sale price of $28 million represents LESS THAN half
     of the $60 million book value recorded by FIC for Family Life.

               THE CURRENT BOARD'S TRACK RECORD

 The Current Board's track record provides plenty of evidence of the
 pressing need for change:

  *  Nasdaq has DELISTED the Company's stock.

  *  The Company's share trading price has FALLEN DRAMATICALLY -- from
     $15.20 on July 31, 2003 (when the current Board took over), to
     $7.30 on December 20, 2006.

  *  The combined statutory investment income of the Company's two
     insurance subsidiaries has decreased from $41.6 million in 2003
     to $34.4 million in 2004 and to $31.8 million in 2005.

  *  The Company's 2003 audited financial statements were filed with
     the SEC a year and a half late.  The Company's 2004 audited
     financials were not filed until October 30, 2006, again a year
     and a half late.  The 2005 fiscal year financials remain
     unaudited.  The Company has incurred approximately $20 million in
     accounting fees during the current board's tenure, but still has
     no internal auditor and does not have current audited financial
     statements.

  *  The recently filed 2004 fiscal year financial statements show
     that during the current board's first complete year in office,
     the Company's investment income was down $4.6 million, while
     audit expenses (including auditing, actuarial, accounting,
     consulting, and legal fees) increased from $2.1 million in 2002
     to $8.7 million in 2004.   The filing also shows a $14.4 million
     loss.  This compares to a loss of less than $5 million in 2002.

                       A REAL PLAN FOR FIC

 Improve FIC has assembled a team of experienced professionals to
 breathe fresh life into a troubled insurance company, which has had
 an interim CEO for more than a year, and before that had a CEO with
 no insurance company experience who was forced to resign.  Our
 nominees were carefully selected based on experience, expertise in
 the life insurance industry, and track records of exercising strong,
 independent judgment.  Five of our eight directors have served as
 senior officers at life insurance operations.

 We believe John Fibiger, a member of our board slate, is an ideal
 candidate to be CEO and Chairman of the Board of FIC.  Mr. Fibiger
 boasts an impressive resume, which includes two troubled-company
 turnarounds and experience leading Transamerica Life.  Mr. Fibiger
 has been in contact with several top insurance company executives who
 have expressed great interest in assisting Mr. Fibiger to turn the
 Company around.

                     YOUR VOTE IS IMPORTANT

 We urge you to vote your GOLD PROXY CARD.  It is time for experienced
 leadership and the advancement of shareholders' interests at FIC.
 Improve FIC's proxy statement and other relevant documents are
 available for free at www.sec.gov.  You may also obtain a free copy
 of Improve FIC's definitive proxy statement by contacting D.F. King &
 Co., Inc. toll-free at (800) 714-3313.  If you have any questions
 about Improve FIC or how to vote, please call (512) 479-6777.


            

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