The law firm of Cohen, Milstein, Hausfeld, & Toll, P.L.L.C. has filed a lawsuit on behalf of its client against UICI, Inc. UCI ("UICI" or the "Company") in the United States District Court for the Northern District of Texas. UICI provides insurance, primarily health and life insurance, to niche consumer and institutional markets. The Company also provides certain financial and insurance related products and services through its subsidiaries.

The complaint charges UICI and certain of its officers and directors with violating the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder, by issuing a series of false and misleading financial statements that caused the Company's shares to trade at artificially inflated levels between January 17, 2000, and July 21, 2003 (the "Class Period"). While UICI's stock was trading at these artificially high levels, the Company's wholly-owned subsidiary, Academic Management Services Corp. ("AMS"), completed the sale of $335 million in auction rate notes backed by federally- and privately-insured student loans held in the AMS portfolio. In addition, corporate insiders received millions of dollars in proceeds from the sale of their UICI shares during the Class Period.

Specifically, the complaint alleges that, during the Class Period, defendants issued materially false and misleading financial statements that misrepresented the financial condition of UICI because they failed to disclose or indicate that: (i) UICI lacked adequate internal accounting controls; (ii) as a result of these inadequate accounting controls, the Company's financial results were artificially inflated; (iii) certain statements made by defendants regarding UICI's financial results and prospects were lacking in any reasonable basis; and (iv) the Company's wholly-owned subsidiary, AMS, had insufficient collateral, a higher percentage of alternative loans than permitted by the loan eligibility provisions, and that AMS and its subsidiaries had deficiencies with respect to their reporting requirements. According to the complaint, defendants' materially false and misleading statements and material omissions caused investors to purchase UICI shares at artificially inflated prices during the Class Period and to be damaged thereby.

According to the complaint, the truth about the Company's operations and its financial condition was not revealed to investors until July 21, 2003, when UICI issued a press release announcing the discovery of a shortfall in the type and amount of collateral supporting two of the securitized student loan financing facilities entered into by three special financing subsidiaries of AMS. In addition, UICI revealed, at this time, that all seven special financing subsidiaries of AMS and AMS may have failed to comply with their respective reporting obligations under the financing documents. Following the release of this information, the price of UICI's stock dropped significantly. The complaint seeks to recover damages on behalf of all purchasers of UICI common stock during the Class Period.

If you purchased or acquired UICI common stock during the Class Period, you may, no later than July 26, 2004, move the Court to be appointed as Lead Plaintiff. There are certain legal requirements to serve as Lead Plaintiff.

Any member of the purported class may move the Court to serve as Lead Plaintiff through counsel of their choice or may choose to remain an absent class member. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as Lead Plaintiff. To be a member of the class, you need not take any action at this time.

Cohen, Milstein, Hausfeld & Toll, P.L.L.C. has significant experience in prosecuting investor class actions and actions involving securities fraud. The firm has offices in Washington, D.C., New York and Chicago, and is active in major litigation pending in federal and state courts throughout the nation. You may visit the firm's website at www.cmht.com.

The firm's reputation for excellence has been recognized on repeated occasions by courts which have appointed the firm to lead positions in complex multi-district or consolidated litigation. Cohen, Milstein, Hausfeld & Toll, P.L.L.C. has taken a lead role in numerous important cases on behalf of defrauded investors, and has been responsible for a number of outstanding recoveries which, in the aggregate, total in the billions of dollars.

If you have any questions about this notice or the action, or with regard to your rights, please contact either of the following:

                   Steven J. Toll, Esq.
                   Robert Smits
                   Cohen, Milstein, Hausfeld & Toll, P.L.L.C.
                   1100 New York Avenue, N.W.
                   West Tower - Suite 500
                   Washington, D.C. 20005
                   Telephone: (888) 240-0775 or (202) 408-4600
                   E-mail:  stoll@cmht.com or rsmits@cmht.com