EXHIBIT 11.1



EFJ, INC. AND SUBSIDIARIES

COMPUTATION OF NET INCOME (LOSS) PER SHARE

(Unaudited and in thousands, except share and per share
data)



|                                                                |  |                             |            |      |                          |            |      |  |      |            |  |   |           
|--------------------------------------------------------------- |  | --------------------------- | ---------- | ---- | ------------------------ | ---------- | ---- |  | ---- | ---------- |  | - | ----------
|                                                                |  | Three Months Ended June 30, |            |      | Six Months Ended June 30
|                                                                |  | 2005                        |            | 2004 |                          |            | 2005 |  | 2004
|Net income (loss)                                               |  | $                           | 295        |      | $                        | (1,461     | )    |  | $    | 5,538      |  | $ | 1,534     
|                                                                |  |                             |            |      |                          |            |      |  |      |            |  |   |           
|Net income (loss) per share  Basic:                            |  |                             |            |      |                          |            |      |  |      |            |  |   |           
|                                                                |  |                             |            |     
|Weighted average common shares - Basic                          |  |                             | 18,518,964 |      |                          | 17,716,875 |      |  |      | 18,416,004 |  |   | 17,650,585
|                                                                |  |                             |            |      |                          |            |      |  |      |            |  |   |           
|Net income (loss) per share  Basic                             |  | $                           | 0.02       |      | $                        | (0.08      | )    |  | $    | 0.30       |  | $ | 0.09      
|                                                                |  |                             |            |      |                          |            |      |  |      |            |  |   |           
|Net income (loss) per share  Diluted:                          |  |                             |            |      |                          |            |      |  |      |            |  |   |           
|                                                                |  |                             |            |     
|Shares used in this computation:                                |  |                             |            |      |                          |            |      |  |      |            |  |   |           
|Weighted average common shares - Basic                          |  |                             | 18,518,964 |      |                          | 17,716,875 |      |  |      | 18,416,004 |  |   | 17,650,585
|Dilutive effect of shares under employee stock plans - See Note |  |                             | 329,068    |      |                          |           |      |  |      | 393,635    |  |   | 1,189,686 
|                                                                |  |                             |            |      |                          |            |      |  |      |            |  |   |           
|Weighted average common shares  Diluted - See Note             |  |                             | 18,848,032 |      |                          | 17,716,875 |      |  |      | 18,809,639 |  |   | 18,840,271
|                                                                |  |                             |            |      |                          |            |      |  |      |            |  |   |           
|Net income (loss) per share  Diluted                           |  | $                           | 0.02       |      | $                        | (0.08      | )    |  | $    | 0.29       |  | $ | 0.08      
|                                                                |  |                             |            |      |                          |            |      |  |      |            |  |   |           

---

|      |  |                                                                                                                                                                                                                                                                                                                                                                                                                
|----- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Note: |  | For the three months ended June 30, 2004, the effect of diluted net loss per share would be anti-dilutive as we incurred a net loss for the period. As such, dilutive effect of outstanding stock
options are excluded from the calculation of the diluted weighted average common shares, and the weighted average common shares is used for both the basic loss per share and the diluted net loss per share.