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Old Republic Reports Second Quarter and First Half Results Supported by Continued Strength of General Insurance Lines

July 28, 2006

CHICAGO,-- Old Republic International Corporation (NYSE: ORI), announced the following results for the second quarter and first half of 2006:

Financial Highlights (unaudited; amounts in millions except per share data and percentages; all per share amounts are shown on a diluted basis and have been restated retroactively to reflect the 25% stock dividend issued in December 2005)

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	Quarters Ended June 30,			Six Months Ended June 30,
	2006	2005	Change	2006	200	Change
Operating Revenues	$940.7	$932.1	.9%	$1,876.1	$1,804.4	4.0%
Net Operating Income	$121.3	$163.9*	-26.0%	$233.8	$273.0*	-14.4%
Net Income	$126.6	$172.3*	-26.5%	$244.0	$286.6*	-14.8%
Diluted Earnings Per Share:
Net operating income:
Before non-recurring tax benefit	$0.5	$0.51	2.0%	$1.01	$0.98	3.1%
2005 non-recurring tax benefit		- 0.20		- 0.20
Total	0.52	0.71	-26.8%	1.01	1.18	-14.4%
Net realizedinvestment gains	0.02	0.03	0.04	.06
Net income	$0.54	$0.74	-27.0%	$1.05	$1.24	-15.3%

* Includes non-recurring income tax and related accumulated interest recovery of $45.9 after tax.

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Second quarter and first half 2006 earnings were constrained by the accelerated recognition of stock option expenses of $4.1 million ($2.6 million after tax or one cent per diluted share). The additional charge stems from second quarter option grants to employees who meet certain age and service criteria, typically long-term employees who are ages 57 or older. Under the recently issued Statement of Financial Accounting Standards No. 123R, "Share- Based Payment", the values attributed to such options must be expensed immediately. On the other hand, second quarter and first half 2005 earnings were enhanced by the posting of a non-recurring recovery of income taxes and related accumulated interest of $57.9 million ($45.9 million net of tax, or 20 cents per diluted share). The recovery stemmed from a favorable resolution of the Company's claim for a permanent Federal income tax refund applicable to the three years ended December 31, 1990.

Source: Old Republic International Corporation