Dutton Associates continues coverage of 21st Century Holding Company (Nasdaq:TCHC) maintaining its rating at Strong Buy and a $16 price target. The 9-page report by Dutton Associates senior analyst Richard W. West, CFA, is available at www.jmdutton.com as well as from First Call, Bloomberg Professional, Capital IQ, FactSet, Reuters, Knobias, and other leading financial portals.

Several events have occurred at 21st Century including positive earnings results, maintenance of the dividend, and the retirement of the founder and CEO, Ted Lawson. The following summary provides our rationale for reiterating our rating of Strong Buy and $16.00 price target. 21st Century’s management made a decision to be selective in the underwriting of home insurance policies, with an eye toward profitability. This decision came about as a reaction to competition from the State of Florida and their lower premium rates. Even with the lower revenue from new underwritings, management’s strategy to control expenses resulted in record earnings for both the fourth quarter and year-end 2007. TCHC’s 1Q results, while still strong, continued to be impacted by the selective underwriting decision and continued control of expenses. For 1Q 2008, total revenue decreased $5.5 million, or 21.7%, to $20.0 million while total expenses decreased $9.3 million, or 38.2%, to $15.0 million. NI increased 412% to $4.3 million for 1Q 2008 while fully diluted net income per share increased 440% to $0.54 for 1Q. The recent move by 21st Century to diversify its business lines away from mobile homes and auto business continues to produce positive results. Further geographical diversification is adding to the long-term attractiveness of TCHC. Considering the actual low market capitalization of 21st Century and the relatively low valuation compared to the peer group, we believe shares continue to deserve a rating of Strong Buy.

About Dutton Associates

Dutton Associates is one of the largest independent investment research firms in the U.S. Its 30 senior analysts are primarily CFAs and have expertise in many industries. Dutton Associates provides continuing analyst coverage of over 140 enrolled companies, and its research, estimates, and ratings are carried in all the major databases serving institutions and online investors.

The cost of enrollment in our one-year continuing research program is US $35,000 prepaid for 4 Research Reports, typically published quarterly, and requisite Research Notes. We received $88,500 from the Company for 12 reports commencing 7/28/2004, and do not accept payment of our fees in company stock. Our principals and analysts are prohibited from owning or trading in securities of covered companies. The views expressed in this research report accurately reflect the analyst's personal views about the subject securities or issuer. Neither the analyst's compensation nor the compensation received by us is in any way related to the specific ratings or views contained in this research report or note. Please read full disclosures and analyst background at www.jmdutton.com before investing.

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John M. Dutton, 916-960-0623