Hallmark Financial Services, Inc. Announces Reverse Stock Split

FORT WORTH, Texas, July 28  /PRNewswire-FirstCall/ -- Hallmark Financial Services, Inc. (AMEX:HAF) today announced a one-for-six reverse split of all issued and unissued authorized shares of its common stock effective as of the open of trading on Monday, July 31, 2006.  Hallmark also announced a corresponding increase in the par value of its authorized common stock from $0.03 per share to $0.18 per share.  After effecting the reverse stock split, Hallmark's total authorized capital stock will consist of 33,333,333 shares of common stock, of which 17,759,770 shares will be issued and outstanding.

Hallmark Financial Services, Inc. engages primarily in the sale of property/casualty insurance products.  The Company's business involves marketing, distributing, underwriting and servicing commercial insurance in Texas, New Mexico, Idaho, Oregon, Montana, Louisiana, Oklahoma and Washington; marketing, distributing, underwriting and servicing non-standard personal automobile insurance in Texas, New Mexico, Arizona, Oklahoma and Idaho; marketing, distributing, underwriting and servicing general aviation insurance in 48 states; and other insurance related services.  The Company is headquartered in Fort Worth, Texas and its common stock is listed on the American Stock Exchange under the symbol "HAF".

Forward-looking statements in this Release are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Act of 1995. Investors are cautioned that actual results may differ substantially from such forward-looking statements.  Forward-looking statements involve risks and uncertainties including, but not limited to, continued acceptance of the Company's products and services in the marketplace, competitive factors, interest rate trends, the availability of financing, underwriting loss experience and other risks detailed from time to time in the Company's periodic report filings with the Securities and Exchange Commission.

                 For further information, please contact:
               Mark J. Morrison, President at 817.348.1600
                        http://www.hallmarkgrp.com/

DATASOURCE: Hallmark Financial Services, Inc.



CONTACT:  Mark J. Morrison, President of Hallmark Financial Services,

Inc., [phone] 



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

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