SPOKANE, Wash., March 5 /PRNewswire/ -- Western United Holding Company ("WUHC") today acknowledged action taken this week by the Washington State Office of the Insurance Commissioner (the "OIC") to initiate a voluntary rehabilitation of, appoint a receiver for, and assume control of the Company's wholly owned subsidiary, Western United Life Assurance Company ("WULAC"). Since December 2003, the OIC has been engaged in supervising WULAC.

"We understand that the Commissioner took this action to ensure the financial protection of WULAC," said Dale Whitney, WUHC's President. "We believe that the OIC's actions are meant to help protect WULAC's policyholders and annuitants."

On February 4, 2004, the Company's parent, Metropolitan Mortgage & Securities Co., Inc., filed for protection under Chapter 11 of the U.S. Bankruptcy Code. WUHC, which is the direct parent of WULAC, was not included in that filing and has not sought bankruptcy protection. The actions of the OIC did not result in an immediate change of management for either WUHC or WULAC. Nevertheless, these actions affect WUHC's ability to control WULAC and direct its operations. WUHC remains committed to working cooperatively with the OIC to ensure that WULAC policyholders and annuitants are protected from any difficulty which may arise as a result of Metropolitan's bankruptcy.

This press release contains statements that are forward-looking within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and the actual results could differ materially as a result of known and unknown risks and uncertainties, including: the outcome of the voluntary rehabilitation and receivership; current and future litigation concerning the Company; future trends and other risks, uncertainties and factors disclosed in the Company's filings with the Securities and Exchange Commission. Finally, there may be other results not mentioned above or included in the Company's SEC filings that may cause actual results to differ materially from those projected in any forward-looking statement. You should not place undue reliance on any forward-looking statement. The Company assumes no obligation to update any forward-looking statement as a result of new information or developments, except as may be required by securities laws.