ASCENT ASSURANCE, INC.

PRESS RELEASE
Source:       Ascent Assurance, Inc.

Corporate Contact:
              Cynthia B. Koenig
              Chief Financial Officer
              (817) 878-3732

                                                          FOR IMMEDIATE RELEASE:
                                                               November 14, 2002

                 ASCENT ASSURANCE REPORTS THIRD QUARTER RESULTS

FORT WORTH, Texas, November 14, 2002...Ascent Assurance, Inc. (AASR.OB) reported
today net income of  $154,000  for the third  quarter of 2002 as compared to net
income of $244,000  for the third  quarter of 2001.  After  deducting  preferred
stock  dividends,  the loss applicable to common  stockholders was ($672,000) or
($.10) per common share for the third  quarter of 2002 as compared to ($502,000)
or ($.08) per common  share for the third  quarter of 2001.  For the nine months
ended  September  30, 2002,  the net loss was  ($174,000)  as compared to ($1.6)
million for the  corresponding  2001 period.  After  deducting  preferred  stock
dividends,  the loss  applicable to common  stockholders  was ($2.6)  million or
($.40) per common share for the nine months ended September 30, 2002 as compared
to ($3.7) million or ($.57) 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 in the first nine months of 2002 were paid through the issuance of 2,415
shares of preferred stock.

Excluding  the impact of net  realized  investment  gains and losses,  operating
income for the third quarter of 2002 was $70,000 as compared to operating income
of $33,000 for the third  quarter of 2001.  For the nine months ended  September
30, 2002,  operating  income was  $159,000 as compared to an  operating  loss of
($1.9) million for the corresponding 2001 period.

Total  revenues were $33.1 million and $100.1  million for the third quarter and
nine months ended September 30, 2002, respectively, as compared to $38.9 million
and $118.5 million for the  corresponding  2001 periods.  Total premium revenues
decreased  by $3.8 million or 12.0% for the third  quarter and $10.8  million or
11.3%  for  the  nine  months  ended  September  30,  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 70.1% and 71.1% for the third
quarter and nine months ended September 30, 2002,  respectively,  as compared to
70.7% and 75.1% for the corresponding  2001 periods.  Operating expenses include
interest  expense  of $1.6  million  and  $813,000  for the  nine  months  ended
September  30, 2002 and 2001,  respectively,  related to  financing  obtained in
April 2001 from an affiliate of the Company's largest  stockholder.  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 third quarter  operations
said: "We are pleased that our operating  income  continues to show  improvement
despite  difficult  market  conditions.  Our reduced  premium levels reflect our
decision  to focus on the  bottom  line  rather  than  top line  growth.  We are
developing  several new  marketing  initiatives  to be introduced in early 2003,
which should improve growth in new business sales."

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, 2001
        and Forms 10-Q for the quarters ended March 31, 2002 , June 30, 2002 and
        September  30, 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.)

<PAGE>


                             ASCENT ASSURANCE, INC.
                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                  (000's omitted, except for per share amounts)

<TABLE>
                                                  Three Months Ended          Nine Months Ended
                                                     September 30,              September 30,
                                           --------------------------  --------------------------
                                                2002         2001          2002          2001
                                           ------------  ------------  ------------  ------------

<S>                                        <C>           <C>           <C>           <C>
First-year premium                         $    5,715    $    7,176    $   17,603    $   23,544
Renewal premium                                22,156        24,496        67,224        72,043
                                           ------------  ------------  ------------  ------------
      Total premiums                           27,871        31,672        84,827        95,587

Net investment income                           1,929         2,186         5,891         6,802
Fee, service and other income                   3,229         4,852         9,725        15,822
Net realized gain (loss) on investments            84           211          (333)          306
                                           ------------  ------------  ------------  ------------
      Total revenue                            33,113        38,921       100,110       118,517
                                           ------------  ------------  ------------  ------------

Benefits and claims                            19,525        22,392        60,344        71,767
Change in deferred acquisition costs              105         1,118           (39)       (1,109)
Commissions                                     4,274         5,031        12,687        16,532
General and administrative expenses             7,521         8,310        22,490        28,063
Taxes, licenses and fees                          905         1,186         2,956         3,539
Interest expense on notes payable                 629           640         1,846         1,296
                                           ------------  ------------  ------------  ------------
      Total expenses                           32,959        38,677       100,284       120,088

Income (loss) before income taxes                 154           244          (174)       (1,571)
Federal income taxes                                -             -             -             -
                                           ------------  ------------  ------------  ------------

      Net income (loss)                    $      154    $      244    $     (174)   $   (1,571)

Preferred stock dividends                         826           746         2,416         2,166
                                           ------------  ------------  ------------  ------------
Loss applicable to common stockholders     $     (672)   $     (502    $   (2,590)   $   (3,737)
                                           ============  ============  ============  ============

Basic and diluted loss per common share    $     (.10)   $     (.08    $     (.40)   $     (.57)
                                           ============  ============  ============  ============

Weighted average shares outstanding:
      Basic                                     6,502         6,500         6,501         6,500
                                           ============  ============  ============  ============
      Diluted                                   6,502         6,500         6,501         6,500
                                           ============  ============  ============  ============

</TABLE>





<PAGE>











                             ASCENT ASSURANCE, INC.
                      CONDENSED CONSOLIDATED BALANCE SHEETS
                                 (000's omitted)
<TABLE>

                                                 September 30,     December 31,
                                                     2002             2001
                                                  (Unaudited)       (Audited)
                                                --------------    --------------


Assets
<S>                                            <C>               <C>
Investment assets                               $    109,443      $    113,901
Cash                                                   1,996             2,337
Accrued investment income                              1,410             1,710
Deferred policy acquisition costs                     25,639            25,600
Agent receivables, net                                 6,782             7,412
Property and equipment                                 4,224             5,436
Other assets                                           6,902             6,197
                                                --------------    --------------
      Total Assets                              $    156,396      $    162,593
                                                ==============    ==============

Liabilities and Equity
Policy liabilities                              $     91,955      $     98,773
Notes payable                                         18,796            18,603
Other liabilities                                      8,405            11,760
                                                --------------    --------------
      Total Liabilities                              119,156           129,136
                                                --------------    --------------

Redeemable Convertible Preferred Stock                33,050            30,635

Stockholders' Equity                                   4,190             2,822
                                                --------------    --------------

      Total Liabilities and Equity              $    156,396      $    162,593
                                                ==============    ==============
</TABLE>