Brooke Corporation Sells Stock of Topeka Company

Brooke Corporation Sells Stock of Topeka Company 


OVERLAND PARK, Kan., March 2  /PRNewswire-FirstCall/ -- Brooke Corporation
(AMEX:BXX) announced today that it has sold all of its holdings of First
American Capital Corporation ("FACC") stock to FACC in a privately negotiated
transaction.  FACC is the holding company of First Life America Corporation, a
life insurance and annuity company headquartered in Topeka, Kansas.

"Instead of holding the FACC stock or increasing our investment, our Board
decided to sell the stock at this time at the approximate cost of acquisition
in order to invest the proceeds in our business and focus all of our efforts on
the growth of Brooke Corporation," said Robert D. Orr, Brooke's Chairman and
Chief Executive Officer.

Orr announced that the sale of 450,500 shares of FACC common stock that closed
today involved a sale price of $770,355 in cash ($1.71 per share), along with
warrants to purchase up to 150,000 shares of FACC common stock at prices
ranging from $1.71 per share to $5.00 per share.  Brooke Credit Corporation,
the finance subsidiary of Brooke Corporation, financed $570,355 of FACC's cash
purchase and intends to sell the loan to an unaffiliated investor.  The
warrants are exercisable in 2012 or immediately prior to any earlier change of
control involving FACC, are subject to certain covenants and conditions, and
expire no later than 2015.  Brooke acquired the FACC stock in November 2003 in
private transactions and owned approximately 9.62% of the outstanding FACC
common stock at that time.

About our company ...  Brooke Corporation (AMEX:BXX) is listed on the American
Stock Exchange under the symbol of BXX.  Brooke Corporation is a holding
company with three primary subsidiaries.  Brooke Franchise Corporation is a
subsidiary that distributes insurance and financial services through a network
of approximately 375 franchise locations as of January 31, 2005.  The Brooke
organization was founded on the belief that local business owners distribute
insurance and related services more efficiently than others if supported by a
franchise system.  Brooke Credit Corporation is a subsidiary that originates
loans to insurance agencies, financial services practices, funeral homes and
other local businesses, including Brooke franchises. Loan portfolio balances
totaled over $185,000,000 on January 31, 2005. Loans have been mostly sold as
individual loans to participating lenders or as pooled loans to investors
through asset backed securitizations.  Brooke Brokerage Corporation is a
subsidiary holding company with subsidiaries that sell insurance on a wholesale
basis primarily through locally owned insurance agencies, including Brooke
franchises.  Through Bermuda based subsidiaries, underwriting risks are shared
with insurance companies on selected policies.

Email Distribution ... If you would like to receive electronic press release
information then please visit the "Investor Relations" section of our website
at http://www.brookecorp.com/ and subscribe to our "Email Alerts" on-line.

This press release may contain forward-looking statements.  Investors are
cautioned that all forward-looking statements involve risks and uncertainties,
and several factors could cause actual results to differ materially from those
in the forward-looking statements.  The following factors, among others, could
cause actual results to differ from those indicated in the forward-looking
statements: the uncertainty that the Company will achieve its short-term and
long-term profitability and growth goals, uncertainties associated with market
acceptance of and demand for the Company's products and services, the impact of
competitive products and pricing, the dependence on third party suppliers and
their pricing, its ability to meet product demand, the exposure to market
risks, uncertainties associated with the development of technology, changes in
the law and in economic, political and regulatory environments, changes in
management, the dependence on intellectual property rights, and the
effectiveness of internal controls.  Investors are directed to the Company's
most recent annual and quarterly reports, which are available from the Company
without charge or at http://www.sec.gov/ , for a more complete description of
the Company's business. 

DATASOURCE: Brooke Corporation



CONTACT:  Anita Larson of Brooke Corporation, [phone],

 



Web site:  http://www.brookecorp.com/ 

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