- Anticipates Record Net Income at 85 to 90 Cents Per Share

           - Record Results Fueled by Improved Underwriting Results

    CINCINNATI, April 8 /PRNewswire-FirstCall/ -- The Midland Company
(Nasdaq: MLAN), a highly focused provider of specialty insurance products and
services, today indicated that it anticipates record results for its first
quarter ended March 31, 2004.  Based on preliminary data, the company believes
that net income per share will be in the range of 85 to 90 cents, including
approximately 15 cents in realized capital gains.  That would compare with the
prior record of 56 cents in last year's first quarter, which included 7 cents
in realized capital losses.  (All per share amounts are on an after-tax
diluted basis.)
    John W. Hayden, president and chief executive officer, noted, "We're
anticipating net income before realized capital gains and losses in the range
of 70 to 75 cents, which would put us in the range of 15 percent ahead of the
prior record of 63 cents (comparable basis) that we reported in last year's
first quarter.  The company believes this measure of net income before
realized capital gains and losses provides a better measure of the ongoing
performance of the company's core insurance operations.
    "In addition to record earnings, the company experienced near double-digit
percentage growth in property and casualty direct and assumed written
premiums, in line with our previously announced expectations.  The growth in
the premium volume includes growth in our core manufactured housing and site
built lines.  As anticipated, we experienced a decrease in the premiums from
our motorcycle lines as we implemented corrective underwriting and rate
actions."
    Hayden said that the first quarter combined ratio -- losses and expenses
as a percent of earned premium -- is expected to be in the range of 94 to 95
percent, compared with 96.2 percent in last year's first quarter.  A combined
ratio under 100 indicates that an insurance company has generated profits from
its underwriting activities.  "We continue to be pleased by the strong
underwriting results in our manufactured housing line of business.  We are
also encouraged by the improved underwriting results in several of our other
specialty lines such as motorcycle, site built dwelling and recreational
vehicle.
    "We remain confident in our 2004 outlook that we discussed in February,"
Hayden said.  "Our full-year target of 96 to 98 percent for the property and
casualty combined ratio allows for the traditional second and third quarter up
tick in claims due to weather patterns and seasonal products.  This would
translate to an earnings per share, exclusive of capital gains and losses, of
$2.00 to $2.20 per share.  At the same time, we expect to approach double-
digit premium growth with rate increases and continued growth in most of our
specialty insurance product lines.
    "We are committed to maintaining American Modern's position as one of the
best specialty property and casualty insurance companies in the country,"
Hayden continued.  "While weather and other unpredictable events can impact
our short-term performance, we believe that our disciplined approach to
underwriting and maintaining rate adequacy positions us to achieve our long-
term financial objectives."


     Reconciliation of Non-GAAP Information (Unaudited)

                                                     Estimated
                                                       Range         Actual
                                                    1st Qtr 2004  1st Qtr 2003
     Per Share Amounts (Diluted):
      Net Income Before Capital Gains (Losses)      $0.70  $0.75      $0.63
      Net Capital Gains (Losses)                     0.15   0.15      (0.07)
       Net Income                                    $0.8  $0.90      $0.56


    About the Company
    Midland, which is headquartered in Cincinnati, Ohio, is a provider of
specialty insurance products and services through its wholly owned subsidiary,
American Modern Insurance Group, which accounts for approximately 96 percent
of Midland's consolidated revenue.  American Modern specializes in writing
physical damage insurance and related coverages on manufactured housing and
has expanded to other specialty insurance products including coverage for
site-built homes, motorcycles, watercraft, snowmobiles, recreational vehicles,
physical damage on long-haul trucks, extended service contracts, credit life
and related products as well as collateral protection and mortgage fire
products sold to financial institutions and their customers.  Midland also
owns a niche transportation business, M/G Transport Group, which operates a
fleet of dry cargo barges for the movement of dry bulk commodities on the
inland waterways.  Midland's common stock is traded on the Nasdaq National
Market under the symbol MLAN.  Additional information on the company can be
found on the Internet at http://www.midlandcompany.com .

    Forward Looking Statements Disclosure
    Certain statements made in this press release are forward-looking and are
made pursuant to the safe harbor provisions of the Securities Litigation
Reform Act of 1995.  These statements include certain discussions relating to
underwriting, premium and investment income volume, business strategies,
profitability and business relationships, as well as any other statements
concerning the year 2004 and beyond.  The forward-looking statements involve
risks, uncertainties and other factors that may cause results to differ
materially from those anticipated in those statements.  Factors that might
cause results to differ from those anticipated include, without limitation,
adverse weather conditions, changes in underwriting results affected by
adverse economic conditions, fluctuations in the investment markets, changes
in the retail marketplace, changes in the laws or regulations affecting the
operations of the company or its subsidiaries, changes in the business tactics
or strategies of the company, its subsidiaries or its current or anticipated
business partners, the financial condition of the company's business partners,
acquisitions or divestitures, changes in market forces, litigation and the
other risk factors that have been identified in the company's filings with the
SEC, any one of which might materially affect the operations of the company or
its subsidiaries.  Any forward-looking statements speak only as of the date
made.  We undertake no obligation to update any forward-looking statements to
reflect events or circumstances arising after the date on which they are made.

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