Montgomery, Alabama (Aug. 15, 2007) -- The Special Committee of the Board of Directors of Alfa Corp. today announced that it had retained the law firms of Skadden, Arps, Slate, Meagher & Flom LLP and Maynard Cooper & Gale P.C. to provide legal advice and the investment banking firm of Lazard Fréres & Co. LLC to provide financial advice to it in connection with the $17.60 per share offer Alfa Corp. received from its controlling parent companies, Alfa Mutual Company, Alfa Mutual Fire Insurance Company and Alfa Mutual General Insurance Company (referred to collectively as Alfa Mutual), to acquire all outstanding shares of Alfa Corp.'s common stock that are not currently owned by Alfa Mutual.

At this time, no assurance can be given that any transaction will take place on these or any terms.

Alfa Corp. is engaged in insurance and financial activities through its subsidiaries. The common stock of Alfa Corp. is traded on the NASDAQ Global Select Market under the symbol ALFA.

Investors are cautioned that statements in this press release which relate to the future are, by their nature, uncertain and dependent upon numerous contingencies — including political, economic, regulatory, climatic, competitive, legal, and technological — any of which could cause actual results and events to differ materially from those indicated in such forward-looking statements. Additional information regarding these and other risk factors and uncertainties may be found in Alfa Corporation’s filings with the Securities and Exchange Commission.