Direct General Buyout

Fremont Partners and < ?xml:namespace prefix = st1 ns = "urn:schemas-microsoft-com:office:smarttags" />Texas Pacific Group have agreed to acquire Nashville, Tenn.-based insurance company Direct General Corp. (NasdaqGS: DRCT). The total transaction price is $628.2 million (including leverage), with Direct General shareholders to receive $21.25 per outstanding share (28.71% premium to yesterday’s closing price). SunTrust Robinson Humphrey served as financial advisor to the special committee of Direct General‘s board of directors in connection and provided a fairness opinion to Direct General, while Bear, Stearns acted as financial advisor to Fremont and TPG. www.direct-general.com < ?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />