ASCENT ASSURANCE, INC

# PRESS RELEASE

Source: Ascent Assurance,
Inc.

Corporate Contact:

Cynthia
B. Koenig      ChiefFinancial Officer
      (817) 878-3732

FOR
IMMEDIATE RELEASE:

March 6, 2003

ASCENT ASSURANCE
REPORTS FOURTH QUARTER RESULTS

FORT WORTH, Texas, March 6,
2003Ascent Assurance, Inc. (AASR.OB) reported today a net loss of ($758,000) for the
fourth quarter of 2002 as compared to a net loss of ($548,000) for the fourth quarter of
2001. After deducting preferred stock dividends, the loss applicable to common
stockholders was ($1.6) million or ($0.25) per common share for the fourth quarter of 2002
as compared to ($1.3) million or ($0.20) per common share for the fourth quarter of 2001.
For the year ended December 31, 2002, the net loss was ($931,000) as compared to ($2.1)
million for the corresponding 2001 period. After deducting preferred stock dividends, the
loss applicable to common stockholders was ($4.2) million or ($.64) per common share for
the year ended December 31, 2002 as compared to ($5.1) million or ($.78) per common share
for the corresponding 2001 period. Preferred stock dividends are payable through the
issuance of additional shares of preferred stock or cash, at the Companys option.
Preferred stock dividends accrued during 2002 were paid through the issuance of 3,261
shares of preferred stock.

Fourth quarter results were adversely
impacted by the Companys fee and service operations which reported a pre-tax loss of
($718,000) for the fourth quarter of 2002 as compared to pre-tax income of $322,000 for
the fourth quarter of 2001. For the year ended December 31, 2002, fee and service
operations reported a pre-tax loss of ($388,000) as compared to pre-tax income of $1.7
million for the corresponding 2001 period. Fee and service operating results are
principally attributable to the Companys printing and telemarketing subsidiaries
which have experienced reduced sales, particularly in the fourth quarter of 2002, as a
result of the sluggish economy.

Total revenues were $31.2 million and
$131.3 million for the fourth quarter and year ended December 31, 2002, respectively, as
compared to $36.9 million and $155.4 million for the corresponding 2001 periods. Total
premium revenues decreased by $3.4 million or 11.5% for the fourth quarter and $14.2
million or 11.3% for the year ended December 31, 2002 as compared to the corresponding
prior year periods. The decline in premium revenue is principally attributable to the
expected decline in premium from unprofitable major medical products marketed prior to
July 2000.

The benefits and claims to premium
ratio was 68.5% and 70.5% for the fourth quarter and year ended December 31, 2002,
respectively, as compared to 73.0% and 74.6% for the corresponding 2001 periods. Operating
expenses include interest expense of $2.2 million and $1.3 million for the year ended
December 31, 2002 and 2001, respectively, related to financing obtained in April 2001. The
Company has elected to pay the interest in kind through the issuance of additional notes
payable.

Patrick J. Mitchell, Chairman and
CEO, commenting on fourth quarter operations said: We are disappointed that losses
from our fee and services operations have overshadowed the steady improvement in our core
insurance operations this quarter. Corrective measures have been initiated to reverse
these losses in our fee and services operations. We expect 2003 to be an exciting year for
the Companys core insurance operations. New marketing initiatives and continued
expense discipline will accelerate the Companys momentum toward achieving consistent
profitability.

Ascent Assurance, Inc. is an
insurance holding company primarily engaged in the development, marketing, underwriting
and administration of medical-surgical expense, supplemental health, life and disability
insurance products to self-employed individuals and small business owners. Marketing is
achieved primarily through the career agency force of its marketing subsidiary. The
Companys goal is to combine the talents of its employees and agents to market
competitive and profitable insurance products and provide superior customer service in
every aspect of operations. (www.ascentassurance.com)

| | (Forward-Looking
Statements: The Private Securities Litigation Reform Act of 1995 provides a safe
harbor for forward-looking statements. This press release contains forward-looking
statements regarding the intent, belief or current expectations of the Company and members
of its senior management team. While the Company believes that its expectations are based
on reasonable assumptions within the bounds of its knowledge of its business and
operations, prospective investors are cautioned that any such forward-looking statements
are not guarantees of future performance, and involve risks and uncertainties, and that
actual results may differ materially from those contemplated by such forward-looking
statements. Factors that would cause actual results to differ materially from those
contemplated within this press release can be found in the Companys Form 10-K for
the year ended December 31, 2002. Such factors include but are not limited to: any
limitation imposed on the Companys ability to control the impact of rising health
care costs, especially prescription drugs, and rising medical service utilization rates
through product and benefit design, underwriting criteria, premium rate increases,
utilization management and negotiation of favorable provider contracts; the impact of
changing health care trends on the Companys ability to accurately estimate claim and
settlement expense reserves; developments in health care reform and other regulatory
issues, including the Health Insurance Portability and Accountability Act and increased
privacy regulation, and changes in laws and regulations in key states where the Company
operates; the Companys ability to meet minimum regulatory capital requirements for
its Insurance Subsidiaries; the ability of the Company to maintain adequate liquidity for
its non-insurance subsidiary operations including financing of commission advances to
agents; default by issuers of fixed maturity investments owned by the Company; and the
loss of key management personnel.)
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

ASCENT ASSURANCE,
INC.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(000s
omitted, except for per share amounts)

| | Three Months Ended December 31, |  | Year Ended December 31,
| | ------------------------------- |  | -----------------------

|                                        |  |             |   |             |  
|--------------------------------------- |  | ----------- | - | ----------- | -
|
|                                        |  | 2002        |   | 2001        |  
|                                        |  |             |   |             |  
|First-year premium                      |  | $     5,530 |   | $     6,440 |  
|Renewal premium                         |  | 20,691      |   | 23,179      |  
|                                        |  |             |   |             |  
|Total premiums                          |  | 26,221      |   | 29,619      |  
|Net investment income                   |  | 1,830       |   | 2,065       |  
|Fee and service income                  |  | 2,197       |   | 4,213       |  
|Other insurance revenues                |  | 674         |   | 880         |  
|Net realized gain (loss) on investments |  | 245         |   | 87          |  
|                                        |  |             |   |             |  
|Total revenue                           |  | 31,167      |   | 36,864      |  
|                                        |  |             |   |             |  
|Benefits and claims                     |  | 17,954      |   | 21,609      |  
|Change in deferred acquisition costs    |  | 254         |   | 221         |  
|Commissions                             |  | 3,255       |   | 4,023       |  
|General and administrative expenses     |  | 5,953       |   | 5,905       |  
|Fee and service operating expenses      |  | 2,915       |   | 3,891       |  
|Taxes, licenses and fees                |  | 966         |   | 1,126       |  
|Interest expense on notes payable       |  | 628         |   | 637         |  
|                                        |  |             |   |             |  
|Total expenses                          |  | 31,925      |   | 37,412      |  
|Loss before income taxes                |  | (758        | ) | (548        | )
|Federal income taxes                    |  | -           |   | -           |  
|                                        |  |             |   |             |  
|Net loss                                |  | $      (758 | ) | $      (548 | )
|Preferred stock dividends               |  | 847         |   | 766         |  
|                                        |  |             |   |             |  
|Loss applicable to common stockholders  |  | $  (1,605   | ) | $  (1,314   | )
|                                        |  |             |   |             |  
|Basic and diluted loss per common share |  | $      (.25 | ) | $      (.20 | )
|                                        |  |             |   |             |  
|Weighted average shares outstanding:    | 
|Basic                                   |  | 6,517       |   | 6,500       |  
|                                        |  |             |   |             |  
|Diluted                                 |  | 6,517       |   | 6,500       |  
|                                        |  |             |   |             |  

ASCENT ASSURANCE,
INC.CONDENSED CONSOLIDATED BALANCE SHEETS

(000s omitted)

| | December 31, |  | December 31, | 
| | ------------ |  | ------------ | 

|                                       |  |          
|-------------------------------------- |  | ---------
|                                       |  | 2002     
|                                       |  |          
|Assets                                 | 
|Investment assets                      |  | $110,296 
|Cash                                   |  | 1,878    
|Accrued investment income              |  | 1,312    
|Deferred policy acquisition costs      |  | 25,385   
|Agent receivables, net                 |  | 6,298    
|Property and equipment                 |  | 3,806    
|Other assets                           |  | 6,465    
|                                       |  |          
|Total Assets                           |  | $155,440 
|                                       |  |          
|Liabilities and Equity                 | 
|Policy liabilities                     |  | $  91,559
|Notes payable                          |  | 18,189   
|Other liabilities                      |  | 9,535    
|                                       |  |          
|Total Liabilities                      |  | 119,283  
|                                       |  |          
|Redeemable Convertible Preferred Stock |  | 33,896   
|Stockholders' Equity                   |  | 2,261    
|                                       |  |          
|Total Liabilities and Equity           |  | $155,440 
|                                       |  |