CERG Ceres (MM)

CINCINNATI and STRONGSVILLE, Ohio, Aug. 7 /PRNewswire-FirstCall/ -- Great American Financial Resources, Inc. ("GAFRI") (NYSE:GFR) and Ceres Group, Inc. (NASDAQ:CERG) today announced the consummation of their previously announced merger. The merger was completed following the approval of the transaction by the Ceres stockholders at a special meeting on August 4, 2006 so that Ceres is now a wholly-owned subsidiary of GAFRI. (Logo: http://www.newscom.com/cgi-bin/prnh/20060725/CLTU092LOGO ) Under the terms of the merger, each of Ceres Group's outstanding shares of common stock was converted into the right to receive $6.13 in cash. GAFRI has appointed National City Bank as agent for payment of the merger consideration. The paying agent will send a letter of transmittal to each former stockholder which will contain instructions for obtaining cash in exchange for their shares. As a result of the completion of the merger, stock of Ceres Group will no longer trade on NASDAQ. About GAFRI GAFRI is a Cincinnati-based insurance holding company with $12 billion in assets. The Company's subsidiaries include Great American Life Insurance Company, Annuity Investors Life Insurance Company, United Teacher Associates Insurance Company (headquartered in Austin, Texas) and Loyal American Life Insurance Company. Through these companies, GAFRI markets traditional fixed, indexed and variable annuities and a variety of supplemental insurance products. For more information, visit http://www.gafri.com/. About Ceres Group Ceres Group, Inc., through its insurance subsidiaries, provides a wide array of health and life insurance products through two primary business segments. Ceres' Medical Segment includes major medical health insurance for individuals, families, associations and small businesses. The Senior Segment includes senior health, life and annuity products for Americans age 55 and over. To help control medical costs, Ceres also provides medical cost management services to its insured. Ceres' nationwide distribution channels include independent and career agents, as well as electronic distribution systems. For more information, visit http://www.ceresgp.com/. http://www.newscom.com/cgi-bin/prnh/20060725/CLTU092LOGO http://photoarchive.ap.org/ DATASOURCE: Great American Financial Resources, Inc. CONTACT: Mark F. Muething, Executive Vice President of Great American Financial Resources, Inc., +1-513-333-5515; or David I. Vickers, Executive Vice President of Ceres Group, Inc., +1-440-878-2941 Web site: http://www.gafri.com/ http://www.ceresgp.com/

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