USI Holdings Corporation Acquires Frank Siddons Insurance

USI Holdings Corporation (NASDAQ: USIH) today announced
the acquisition of Austin, TX-based, Frank Siddons Insurance. The
acquisition of this surety and commercial lines broker is expected to
contribute approximately $2.5 million in revenue to USI on an annual
basis. Terms of the transaction were not disclosed.
   Commenting on the acquisition, John D. Collado, Regional Chief
Executive Officer, USI Southwest Region, said, "The completion of this
transaction further adds depth and expertise to our surety and
construction capabilities within the Southwest Region. The Siddons
family has been providing insurance services to the Austin community
since 1946. We are pleased that Bob and his team have agreed to join
USI and we welcome their clients to the USI family."
   Robert C. (Bob) Siddons, President, Frank Siddons Insurance added,
"For nearly 40 years, the Siddons team has been serving Austin clients
by bringing them quality solutions. By joining USI, we can now offer a
wide variety of products and services to these clients. We are pleased
to have the opportunity to make national offerings available to our
clients without compromising the personal attention that we are
committed to delivering."

   This press release contains "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements may be identified by words such as
"expects," "anticipates," "intends," "plans," "believes," "seeks,"
"estimates," "will" or words of similar meaning and include, but are
not limited to, statements about the expected future business and
financial and operating performance of USI resulting from and
following the acquisition. These statements are based on management's
current expectations and are inherently subject to uncertainties and
changes in circumstances. Detailed information about the factors that
could cause actual results to differ materially from those described
in the forward-looking statements is contained in USI's filings with
the SEC. Some of those factors include matters analyzed in the due
diligence process, material adverse changes in the clients of the
acquired company, and substantial delay in the expected closing of the
transaction. All forward-looking statements included in this press
release are made only as of the date of this press release, and USI
does not undertake any obligation to publicly update or correct any
forward-looking statements to reflect events or circumstances that
subsequently occur or of which USI hereafter becomes aware.

   About USI Holdings Corporation

   Founded in 1994, USI is a leading distributor of insurance and
financial products and services to businesses throughout the United
States. USI is headquartered in Briarcliff Manor, NY, and operates out
of 68 offices in 19 states. Additional information about USI may be
found at www.usi.biz.