First Mercury Financial Corporation Added to the Russell 2000(R), Russell 3000(R) and Russell Microcap(TM) Equity Indexes

SOUTHFIELD, Mich., Dec. 18  /PRNewswire-FirstCall/ -- First Mercury Financial Corporation (NYSE:FMR) today announced that its stock has been added to the Russell 2000(R), Russell 3000(R) and Russell Microcap(TM) Indexes effective December 15, 2006. The Russell 3000 is a listing of the top 3,000 U.S. common stocks, ranked from the largest to the smallest market capitalization. The Russell 2000 is a benchmark index for small-cap investments and is comprised of the stocks in the lower two-thirds of the Russell 3000. The Russell Microcap Index includes the smallest 1,000 securities in the Russell 2000 plus the next 1,000 securities.  These indexes act as a performance standard for fund managers and rank as the most widely used set of performance benchmarks for institutional investment products.

Richard Smith, chairman and chief executive officer, commented, "We are quite pleased to be included in all three of these indexes.  We believe that our inclusion will further increase investor awareness about First Mercury, especially as we continue to deliver on our business strategy and build shareholder value."

The Russell indexes are reconstituted every year in June, with eligible Initial Public Offerings added at the end of each calendar quarter.

About First Mercury Financial Corporation

First Mercury Financial Corporation markets and underwrites specialty commercial insurance products, focusing on niche and underserved segments where the company has underwriting expertise and other competitive advantages. During the company's 33 years of underwriting risks, First Mercury has established CoverX(R) as a recognized brand among insurance agents and brokers.  As primarily an excess and surplus (E&S) lines underwriter, First Mercury's goal is to generate underwriting profit utilizing its strong underwriting expertise and a cost-efficient infrastructure.

Safe Harbor Statement

This release contains forward-looking statements that relate to future periods and includes statements regarding our anticipated performance. Generally, the words "anticipates," "believes," "expects," "intends," "estimates," "projects," "plans" and similar expressions identify forward- looking statements. These forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause our actual results, performance or achievements or industry results to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements. These risks, uncertainties and other important factors include, among others: our ability to maintain or the lowering or loss of one of our financial or claims-paying ratings; our actual incurred losses exceeding our loss and loss adjustment expense reserves; the failure of reinsurers to meet their obligations; our inability to obtain reinsurance coverage at reasonable prices; the failure of any loss limitations or exclusions or changes in claims or coverage; our lack of long-term operating history in certain specialty classes of insurance; our ability to acquire and retain additional underwriting expertise and capacity; the concentration of our insurance business in relatively few specialty classes; competition risk; fluctuations and uncertainty within the excess and surplus lines insurance industry; the extensive regulations to which our business is subject and our failure to comply with these regulations; our ability to maintain our risk-based capital at levels required by regulatory authorities; our inability to realize our investment objectives; and the risks identified in our filings with the Securities and Exchange Commission, including our Registration Statement on Form S-1.  Given these uncertainties, you are cautioned not to place undue reliance on these forward-looking statements.  We assume no obligation to update or revise them or provide reasons why actual results may differ.

For more information on the company, please visit the company's website at

http://www.firstmercury.com/ 

DATASOURCE: First Mercury Financial Corporation



CONTACT:  Bill Kindorf, VP - Corporate Development of First Mercury

Financial, [phone],  , or Analysts-Investors,

Leslie Loyet of Financial Relations Board, [phone],  



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

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