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Capital Title Group Provides Guidance for Third Quarter Ending September 30, 2002

August 14, 2002

PHOENIX, /PRNewswire-FirstCall/ -- Capital Title Group, Inc. (Nasdaq: CTGI - News), a regional provider of title insurance and real estate-related services, today released guidance for the third quarter period ending September 30, 2002 and provided public discussion on its existing corporate governance policies.

Outlook For Third Quarter Ending September 30, 2002

For the first time in the company's history it has taken the position to provide guidance to investors regarding its anticipated financial results for the quarter ending September 30, 2002. The anticipated results announced by the company are based on the economic and market conditions of the industry as of August 10, 2002 and the company gives no assurances as to how changes in these conditions may affect its actual third quarter financial results.

Capital Title expectations for the third quarter are primarily based on the continued strength in the industry due to low mortgage rates and the fact that a mortgage rate increase would not have a material affect in the third quarter period. Also accounted for in the calculation of the outlook was the status of the company's open order count at the beginning of August 2002. These factors combined with general operating activity provide for expected net income in the range of $1.2 million to $1.5 million or approximately $0.06 to $0.08 per diluted share.

Corporate Governance Policies

The company also reaffirmed its corporate governance practices in light of the recently enacted Sarbanes-Oxley Act of 2002. Starting with the composition of its seven-member Board of Directors, the company has six independent directors, a structure that allows each of the Board's two committees (Audit Committee and Compensation Committee) be fully comprised of independent directors.

Commenting on the company's governance principles, Donald R. Head chairman, president and CEO stated, "We welcome the recently enacted regulations on corporate governance as they encompass processes and controls we have had in place for some time, and we feel these measures will serve to reinforce investor confidence in the overall market. Capital Title's financial statements are straight forward and uncomplicated, presented in a format intended to provide clarity and understanding for investors. The company has no related party transactions, no insider loans and no undisclosed transactions or entities.

"We have an exceptional Board with broad reaching expertise in finance and business practices," Head continued. "Our Audit Committee and Compensation Committee have existing charters that were previously adopted to guide their activities. Our fully independent Audit Committee takes an active role in overseeing the process of preparing our financial statements and reviewing internal and external audit activities, strengthening the checks and balances already present in management's practices. Our Chief Financial Officer Mark Walker and I, as a matter of practice, are responsible for approving all of Capital Title's filings with the Securities and Exchange Commission, and beginning with the recently filed Form 10Q for the second quarter ended June 30, 2002, we gladly signed the newly instituted certifications regarding the accuracy of our financial statements."

In closing Head stated, "We have filed with the Department of Insurance for the State of California to receive the customary regulatory approval for the previously announced combination of Nations Holding Group and Capital Title. This acquisition is expected to more than double Capital Title's revenue and be accretive to earnings in the first full year after the acquisition is completed. Additional guidance will be forthcoming once the merger, anticipated to close before year end, is completed."

Source: Capital Title Group, Inc.



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