GAINSCO Announces Rights Offering DALLAS, May 24 /PRNewswire-FirstCall/ -- GAINSCO, INC. (OTC:GNAC) (BULLETIN BOARD: GNAC) today announced that it has filed a registration statement with the Securities and Exchange Commission ("SEC") relating to a proposed common stock rights offering. The Company expects to distribute non-transferable subscription rights to purchase shares of common stock in the rights offering to persons who will own shares of its common stock of record on June 7, 2005. There is no over-subscription privilege in connection with this rights offering. Upon effectiveness of the registration statement, each such person will receive one subscription right for every three shares of common stock owned on June 7, 2005. Each subscription right would entitle such person to purchase one share of common stock at the purchase price of $.75 per share. The registration statement for the rights offering must be declared effective by the SEC before the rights offering may commence. The Company anticipates the rights offering will begin in June 2005 and will continue for approximately 60 days, unless the Company decides to extend the expiration date. A registration statement relating to these securities has been filed with the SEC but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This press release does not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state. Holders of the Company's common stock as of the record date shown above will receive a prospectus and subscription materials in the mail. GAINSCO, INC. is a Dallas, Texas-based holding company. The Company's nonstandard personal automobile insurance products are distributed through retail agents in Florida, Texas, Arizona, Nevada and California. Its insurance company subsidiaries are General Agents Insurance Company of America, Inc. and MGA Insurance Company, Inc. Statements made in this release that are not historical facts are forward-looking statements. Investors are cautioned that important factors, representing certain known or unknown risks and uncertainties, could cause actual results to differ materially from those contained in the forward-looking statements, and they should not place undue reliance on such statements. These factors include, but are not limited to, risk factors described in the Company's registration statement filed with the SEC on May 24, 2005, and the factors identified from time to time in the Company's other filings with the SEC, press releases and other communications. A forward-looking statement is relevant only as of the date the statement is made and the Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances arising after the date on which the statement was made. DATASOURCE: GAINSCO, INC. CONTACT: Scott A. Marek, Asst. Vice President-IR, +1-214-647-0427, or Richard M. Buxton, Senior Vice President, +1-214-647-0428, both of GAINSCO, INC., Web site: http://www.gainsco.com/

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