AUSTIN, Texas, Aug. 7 /PRNewswire-FirstCall/ -- Citizens, Inc. (NYSE: CIA) reported net income of $5.7 million or $0.11 per share of Class A common stock for the six months ended June 30, 2008, compared to net income of $6.0 million, or $0.12 per share of Class A common stock, for the same period in 2007. The decrease in earnings was due primarily to an increase in death claims and property claims, coupled with an increase in the amortization of deferred policy acquisition costs.

Total revenues increased 5.2% in the first six months of 2008 to $83.2 million, compared to the same period of 2007 when revenues were $79.1 million. Total revenues from our Life Insurance segment increased to $56.3 million compared to $52.8 million. Premium income was $67.9 million for the first half of 2008, a 5.2% increase over the same period of 2007 when premiums were $64.5 million. The increase resulted primarily from renewal premiums in our Life Insurance segment, which continues to experience strong persistency. Net investment income increased 5.8% during the first half of 2008 to $14.9 million from $14.1 million in 2007, the increase fueled by the growth in our investment portfolio. Underwriting and insurance expenses decreased from $14.2 million in 2007 to $13.9 million in 2008, due primarily to lower costs associated with the Company's 2008 Annual Shareholders Meeting and the absence of insurance department examination expenses incurred during 2007.

For the three months ended June 30, 2008, the Company earned net income of $3.0 million or $0.06 per share of Class A common stock, compared to $3.5 million or $0.07 per share of Class A common stock for the same period in 2007. The decrease in the second quarter income resulted primarily from increased death claims and property claims.

Assets at June 30, 2008 totaled $801.0 million, compared to $787.9 million at December 31, 2007. Stockholders' equity at June 30, 2008 was $174.9 million compared to $176.2 million at December 31, 2007. The decrease was a result of an increase in unrealized investment losses of $6.3 million during the period, plus amortization of discounts and deferred issuance costs of $668,000 for our Series A Preferred Stock, net of income earned during the period.

Citizens, Inc. will hold a conference call to discuss its second quarter 2008 operating results at 10:00 a.m. Central Daylight Time on Friday, August 8, 2008, to be hosted by Rick D. Riley, Vice Chairman and President, Tom Kopetic, Chief Financial Officer and other members of the Citizens, Inc. management team.

To participate in the Citizens, Inc. conference call on Friday, August 8, 2008, dial (888) 742-8686 and when prompted enter confirmation code #8442219. It is recommended you dial in 3-5 minutes before the call is scheduled to begin.

About Citizens, Inc.

Citizens, Inc. is a financial services company listed on the New York Stock Exchange under the symbol CIA. The Company plans to achieve $1 billion in assets, $250 million in revenues and $10 billion of life insurance in force by 2010, via the worldwide sale of U.S. dollar denominated whole life cash value insurance policies, coupled with the acquisition of other life insurance companies. Citizens' Class A common stock closed at $7.40 on August 7, 2008.

Additional information is available about the Company on its web site: http://www.citizensinc.com.

Information herein contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which can be identified by words such as 'may,' 'will,' 'expect,' 'anticipate' or 'continue' or comparable words. In addition, all statements other than statements of historical facts that address activities that the Company expects or anticipates will or may occur in the future are forward-looking statements. Readers are encouraged to read the SEC reports of the Company, particularly its Form 10-K for the fiscal year ended December 31, 2007, its quarterly reports on Form 10-Q and its current reports on Form 8-K, for the meaningful cautionary language disclosing why actual results may vary materially from those anticipated by management. The Company undertakes no duty or obligation to update any forward-looking statements contained in this release as a result of new information, future events or changes in the Company's expectations. The Company also disclaims any duty to comment upon or correct information that may be contained in reports published by the investment community.

                                CITIZENS, INC.
                COMPARATIVE CONSOLIDATED FINANCIAL HIGHLIGHTS
                   (In thousands, except per share amounts)
                             OPERATING STATEMENTS
                                            (Unaudited)        (Unaudited)
                                         Six Months Ended   Three Months Ended
                                             June 30,            June 30,
                                           2008    2007       2008      2007
    Revenues
      Premiums                           $67,874   64,543    35,204    33,102
      Net investment income               14,944   14,131     7,480     7,064
      Realized gains (losses), net            16     (132)        -      (119)
      Decrease (increase) in fair
       value of warrants                    (191)    (196)      312       231
      Other income                           564      785       285       433
          Total revenues                  83,207   79,131    43,281    40,711
    Benefits and Expenses
      Insurance benefits paid or
       provided:
        Claims and surrenders             27,808   25,204    14,730    12,024
        Increase in future policy
         benefit reserves                 14,730   15,324     7,733     8,389
        Policyholders' dividends           2,954    2,652     1,577     1,422
          Total insurance benefits paid
           or provided                    45,492   43,180    24,040    21,835
      Commissions                         17,087   17,386     9,376     8,997
      Other underwriting,
       acquisition and
       insurance expenses                 13,931   14,224     7,020     7,324
      Capitalization of deferred
       policy acquisition costs          (11,164) (12,906)   (6,309)   (6,782)
      Amortization of deferred
       policy  acquisition costs           7,668    6,480     4,106     3,329
      Amortization of cost of
       customer relationships
       acquired and other
       intangibles                         1,479    1,667       715       826
          Total benefits and expenses     74,493   70,031    38,948    35,529
    Income before Federal income tax       8,714    9,100     4,333     5,182
    Federal income tax expense             2,987    3,134     1,341     1,655
      Net income                          $5,727    5,966     2,992     3,527
      Net income applicable to
       common stock                       $4,716    4,952     2,493     3,016
    Basic and diluted earnings per
     share of Class A common stock       $0.11     0.12      0.06      0.07
    Basic and diluted earnings per
     share of Class B common stock       $0.05     0.06      0.03      0.04


                                BALANCE SHEETS
                                         (Unaudited)
                                        June 30, 2008    December 31, 2007
    Total assets                          $800,955            787,909
    Total invested assets                  577,997            585,296
    Stockholders' equity                   174,948            176,157

     For further information contact:
     Randall H. Riley
     Vice President, Investor Relations
     (512) 837-7100

SOURCE Citizens, Inc.