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                                                                    EXHIBIT 99.1

                             THE ENSTAR GROUP, INC.

                PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
                        SAFE HARBOR COMPLIANCE STATEMENT
                         FOR FORWARD-LOOKING STATEMENTS

     In passing the Private Securities Litigation Reform Act of 1995 (the
"Reform Act"), 15 U.S.C.A. Section 77z-2 and 78u-5 (Supp. 1996), Congress
encouraged public companies to make "forward-looking statements" by creating a
safe harbor to protect companies from securities law liability in connection
with forward-looking statements. The Enstar Group, Inc. ("Enstar" or the
"Company") intends to qualify both its written and oral forward-looking
statements for protection under the Reform Act and any other similar safe harbor
provisions.

     "Forward-looking statements" are defined by the Reform Act. Generally,
forward-looking statements include expressed expectations of future events and
the assumptions on which the expressed expectations are based. All
forward-looking statements are inherently uncertain as they are based on various
expectations and assumptions concerning future events and they are subject to
numerous known and unknown risks and uncertainties which could cause actual
events or results to differ materially from those projected. Due to those
uncertainties and risks, the investment community is urged not to place undue
reliance on written or oral forward-looking statements of Enstar. The Company
undertakes no obligation to update or revise this Safe Harbor Compliance
Statement for Forward-Looking Statements (the "Safe Harbor Statement") to
reflect future developments. In addition, Enstar undertakes no obligation to
update or revise forward-looking statements to reflect changed assumptions, the
occurrence of unanticipated events or changes to future operating results over
time.

     Enstar provides the following risk factor disclosure in connection with its
continuing effort to qualify its written and oral forward-looking statements for
the safe harbor protection of the Reform Act and any other similar safe harbor
provisions. Important factors currently known to management that could cause
actual results to differ materially from those in forward-looking statements
include the following:

ACQUISITIONS; UNCERTAINTY OF ACQUISITION TARGETS; COMPETITION FOR SUITABLE
ACQUISITIONS

     In July 2000, the Company, through B.H. Acquisition Limited ("B.H.
Acquisition"), a joint venture, acquired two reinsurance subsidiaries of
Petrofina S.A., a subsidiary of TotalFina Elf S.A. The reinsurance companies,
Brittany Insurance Company, Ltd. ("Brittany"), incorporated under the laws of
Bermuda, and Compagnie Europeenne d'Assurances Industrielles S.A. ("CEAI"), a
Belgian corporation, were purchased by B.H. Acquisition for $28.5 million. In
exchange for a capital contribution of approximately $9.6 million, including
approximately $200,000 for expenses and working capital, the Company received
50% of the voting stock and a 33% economic interest in B.H. Acquisition.
Brittany and CEAI are principally engaged in the active management of books of
reinsurance business from the international markets. There can be no assurance
that Brittany and CEAI will be financially advantageous to the Company.

     In November 1998, the Company purchased $950,000 of membership units of
B-Line LLC ("B-Line"), a privately owned company that provides services to
credit card issuers and other holders of similar receivables. B-Line also
purchases credit card receivables and recovers payments on these accounts. There
can be no assurance that this acquisition will be financially advantageous for
the Company.

     In terms of the Company's on-going search for one or more suitable
operating businesses, the business of any future acquisition target may be
subject to numerous, unpredictable risks. By way of example only, the
acquisition target may be subject to government regulation, or dependent upon
new technology or new product development. In sum, there can be no assurance
that the Company will make any acquisition that will bring value or prove
financially advantageous to the Company's shareholders.
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     The Company faces intense competition in its search for one or more
operating businesses. The Company competes with strategic and financial buyers
and others looking to acquire suitable operating businesses, who have greater
financial resources and greater flexibility in structuring acquisition
transactions or strategic relationships than the Company.

NO RECENT OPERATING HISTORY; BLIND POOL INVESTMENT

     The Company filed for protection under Chapter 11 of the United States
Bankruptcy Code on May 31, 1991 and operated as a reorganized debtor pursuant to
its Second Amended Plan of Reorganization, as modified until July 17, 1997 when
the United States Bankruptcy Court for the Middle District of Alabama closed the
Company's Chapter 11 proceedings by final order.

     Because the Company has only recently acquired an operating business, the
Company does not have any significant operating history on which to base its
performance or its prospects. The executive officers and Board of Directors will
select acquisitions for the Company. For certain acquisitions, no shareholder
approval will be necessary. Thus, the Company's prospects must be considered in
light of the risks, expenses and difficulties frequently encountered by
companies in their beginning stages of development.

SUBSTANTIAL CHANGE IN THE NATURE OF THE COMPANY'S BUSINESS

     The Company's long term viability, profitability and growth depend on its
ability to successfully realize the plans of the Company's management and Board
of Directors. The magnitude of the changes in the Company that have occurred
since its emergence from bankruptcy make it difficult to evaluate its future
prospects on the basis of historical information relating to the Company. In
addition, significant challenges are often encountered in attempting to build a
business upon emerging from bankruptcy.

DEPENDENCE ON EXECUTIVE OFFICERS AND DIRECTORS

     The success of the Company is highly dependent on the ability of Nimrod T.
Frazer, the Company's Chairman, President and Chief Executive Officer, and the
other executive officers and directors of the Company to identify and consummate
an acquisition on favorable terms. Effective December 1, 1998, J. Christopher
Flowers became Vice Chairman of the Board of Directors. Additionally, on March
2, 2000, John J. Oros was named Executive Vice President and elected as a
director of the Company. The Company believes Mr. Flowers' and Mr. Oros'
extensive business and financial talent and experience greatly enhance the
Company's ability to locate an operating business.

     The identification of attractive business opportunities is difficult and
involves a high degree of uncertainty. There can be no assurance that the
Company's Board of Directors or management will be successful in identifying
attractive business opportunities or successfully consummating any transactions.

POSSIBLE VOLATILITY OF STOCK PRICE

     The market price for the Company's common stock may fluctuate substantially
due to the following factors:

     - announcements with respect to an acquisition;
     - changes in the value of the Company's assets;
     - quarterly operating results of the Company;
     - changes in general conditions in the economy;
     - the financial markets; and
     - adverse press or news announcements.

     In addition, from time to time the stock market experiences significant
price and volume fluctuations. This volatility affects the market prices of
securities issued by many companies for reasons unrelated to their operating
performance.
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INVESTMENT COMPANY ACT OF 1940

     As a result of the Company's Second Amended Plan of Reorganization, as
modified, the Company held shares of First Union common stock as its primary
asset for a period of time longer than the twelve months ending March 27, 1998,
and may have been required to register as an investment company under the
Investment Company Act of 1940 (the "1940 Act"). Registration under the 1940 Act
would subject the Company to many constraints not incurred by most operating
companies. On March 19, 1998, the Company filed an application with the
Securities and Exchange Commission (the "SEC") requesting a two year exemption
from registration under the 1940 Act. In April 1998, the Company received
initial comments on the original application from the staff of the SEC and filed
an amended application on May 22, 1998. While the amended application was still
pending, the Company liquidated all of its First Union common stock and is
generally holding the proceeds in cash, cash equivalents and short-term
certificates of deposit. Accordingly, the Company believes that its status as an
inadvertent investment company has been effectively resolved. In the event the
Company again holds securities as its primary asset, then it may be required to
register under the 1940 Act. If the Company were required to register under the
1940 Act, registration could have material adverse consequences on the Company's
operations. The 1940 Act imposes, among other things, significant restrictions
and requirements on an investment company's capital structure, the composition
and duties of its board of directors, the custody of its assets, the declaration
of dividends, and transactions with its affiliated persons.

GENERAL ECONOMIC RISKS AND BUSINESS CYCLES

     Acquisitions are affected by the current economic conditions and the
business cycle. There can be no assurance that the economic conditions or status
of the business cycle will be favorable.

RISK OF NO DIVERSIFICATION

     The Company does not plan to diversify across several industries. In fact,
the Company may decide to acquire one or more businesses operating in a single
industry.

FINANCING LIMITATIONS

     The Company may be outbid by another company with respect to any given
acquisition and there may be certain financing contingencies that will restrict
the ability of the Company to make a given acquisition.

ANTITAKEOVER PROVISIONS

     The Company's Articles of Incorporation and Bylaws contain provisions that
may discourage other persons from attempting to acquire control of the Company.
One such provision involves procedural requirements in connection with
shareholder nominations for election of directors. The Company has also elected
to be subject to certain provisions of the Georgia Business Corporation Code and
has adopted a share purchase rights plan. The market price of the Company's
common stock may be affected by the forgoing provisions and agreements which
inhibit or discourage take-over attempts.

TAX CONSIDERATIONS

     The Company has claimed deductions for net operating loss carryforwards
("NOLs") totalling approximately $47.4 million on its federal income tax returns
for its taxable years ended August 31, 1997, 1998 and 1999, and anticipates
claiming deductions for NOLs of approximately $1.8 million on its federal income
tax return for the taxable year ended August 31, 2000. The Company anticipates
that after the use of its NOLs on its federal income tax return for the taxable
year ended August 31, 2000, it will have remaining NOLs of approximately $45.4
million that may be deductible in future taxable years (subject to applicable
limitations under the Internal Revenue Code). Although the Company believes that
it is entitled to the deductions for NOLs that it has claimed or intends to
claim on its federal income tax returns for the taxable years ended August 31,
1997 through 2000, there can be no assurance that the Internal Revenue Service
will not challenge the Company's position or as to the result of any such
challenge. Further, there can be no assurance that the
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Company will be able to deduct the remainder of its NOLs for federal income tax
purposes in future taxable years.

     This Safe Harbor Statement supersedes the Safe Harbor Statement filed as
Exhibit 99.1 to the Company's Quarterly Report on Form 10-Q for the period ended
June 30, 2000.