GRAND CAYMAN, Cayman Islands, Nov. 27 /PRNewswire/ -- Chandler Insurance
Company, Ltd., (Nasdaq: CHANF), the parent of Chandler (U.S.A.), Inc.,
National American Insurance Company (NAICO) and other subsidiary companies
based in Oklahoma, today announced that its Board of Directors, based on the
unanimous recommendation of a Special Committee of independent directors, has
adopted resolutions to amend the Company's Memorandum and Articles of
Association to provide for a reverse stock split that would have the effect of
paying public shareholders $10.00 per share and taking the Company private by
reducing the number of shareholders of record.  The proposed amendment, which
is subject to approval by a majority of the public shareholders voting on the
matter, calls for a reverse stock split in which each 1,000,000 common shares
outstanding at the effective time of the amendment will be combined into one
share.  No fractional shares will be issued in the reverse stock split, but
instead public shareholders would receive $10.00 cash for each common share
outstanding before the split.  The reverse stock split is part of a plan led
by Brent LaGere, Chairman and Chief Executive Officer of the Company, and
other senior company management and key shareholders of the Company, which
would result in the Company becoming privately held.
    The Company currently anticipates that a special meeting of shareholders
will be held in Ciudad Acuna, Mexico to take action on the proposed amendment.
The Company has filed preliminary proxy materials respecting the special
meeting with the Securities and Exchange Commission and will send notice of
the special meeting and a proxy statement to shareholders in advance of the
meeting date.  The Company expects that the amendment affecting the reverse
stock split will be filed as soon as practicable following shareholder
approval.
    The proposed going private transaction does not restrict nor impair the
Board of the Company from considering any alternative proposal from any third
party that might provide greater value to Chandler's shareholders.  The
Special Committee of the Board of Directors of the Company has engaged
Stephens Inc. as financial advisor to the Special Committee.  Chandler has not
set a record date for the reverse stock split and reserves the right to
withdraw the proposal at any time.

    Cautionary Statement
    Some of the statements made in this News Release, as well as statements
made by the Company in periodic press releases, oral statements made by the
Company's officials to analysts and shareholders in the course of
presentations about the Company and conference calls following earnings
releases, constitute "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995.  Such forward-looking
statements involve known and unknown risks, uncertainties and other factors
that may cause the actual results, performance or achievements of the Company
to be materially different from any future results, performance or
achievements expressed or implied by the forward-looking statements.  Such
factors include, among other things, (i) general economic and business
conditions; (ii) interest rate changes; (iii) competition and regulatory
environment in which the Company operates; (iv) claims frequency; (v) claims
severity; (vi) the number of new and renewal policy applications submitted by
the Company's agents; (vii) the ability of the Company to obtain adequate
reinsurance in amounts and at rates that will not adversely affect its
competitive position; (viii) NAICO's ability to maintain favorable insurance
company ratings; and (ix) other factors such as the ongoing litigation matters
involving a significant concentration of ownership of common stock.

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