Inter-Atlantic Financial, Inc. Shareholders Vote Against Proposed Business Combination with Patriot Risk Management, Inc.

Inter-Atlantic Financial, Inc. (NYSE Amex: IAN) (“Inter-Atlantic”), a special purpose acquisition company, today announced that a majority of its shareholders voted against the proposed business combination with Patriot Risk Management, Inc. (“Patriot”). As a result, the stock purchase agreement will be terminated and pursuant to the terms of its amended and restated certificate of incorporation, Inter-Atlantic’s corporate existence will cease on October 9, 2009. The trustee will commence liquidating the investments constituting the trust account and distribute the proceeds to the public stockholders of Inter-Atlantic in accordance with Inter-Atlantic’s amended and restated certificate of incorporation, the Investment Management Trust Agreement and applicable Delaware law.

Public shareholders are expected to receive approximately $7.96 per share upon liquidation. In accordance with Inter-Atlantic’s amended and restated certificate of incorporation and the terms of its initial public offering, no payments will be made with respect to Inter-Atlantic’s outstanding warrants (which will expire worthless) or to any of Inter-Atlantic’s initial stockholders with respect to the shares owned by them prior to the initial public offering. In addition, the underwriters of Inter-Atlantic’s initial public offering will forfeit any rights or claims to their deferred underwriting discounts and commissions held in the trust account.

Andrew Lerner, Chief Executive Officer of Inter-Atlantic commented that “while we are disappointed that our shareholders voted against the transaction with Patriot, we respect that each shareholder had the option to choose whether or not to exercise its redemption rights. Our shareholders are expected to receive approximately 99.5% of the price paid per unit in our 2007 IPO, during a period when broad-based financial services stock indices have fallen in excess of 50%.”

As a result of the termination of the proposed transaction, the NYSE Amex is expected to suspend the trading of Inter-Atlantic’s units, common stock and warrants.

Any further questions regarding Inter-Atlantic’s liquidation should be directed to Shareholder Services at American Stock Transfer & Trust Company at [phone].

About Inter-Atlantic Financial, Inc.

Inter-Atlantic Financial, Inc. is a special purpose acquisition company formed for the purpose of acquiring an operating business in the financial services industry. For further information on Inter-Atlantic Financial, please go to http://www.interatlanticfinancial.com/.

Forward-Looking Statements

Any statements contained in this press release that do not describe historical facts may constitute forward-looking statements as that term is defined by the United States Private Securities Litigation Reform Act of 1995. This press release may contain certain forward-looking statements including statements with regard to the future performance of IAN. Words such as “believes,” “expects,” “projects,” "will" and “future” or similar expressions are intended to identify forward-looking statements. Any such forward-looking statements contained herein are based on current expectations, but these forward-looking statements inherently involve certain risks and uncertainties that may cause actual results to differ materially from expectations such as material adverse events affecting IAN and those other risks and uncertainties that are detailed in the IAN’s Prospectus and other filings with the SEC. IAN undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.