KMG America Reports Net Income for Fourth-Quarter and Full-Year 2004

MINNEAPOLIS, March 30 /PRNewswire-FirstCall/ -- KMG America Corporation will hold its quarterly conference call to discuss fourth quarter and full-year results for 2004 and comment on the year 2004 in general. The conference call will be held on Thursday, March 31, 2005 at 10:00 a.m., EST. KMG America is a holding company which acquired Kanawha Insurance Company and its operating subsidiaries in December 2004. KMG America provides group and voluntary benefits and administrative solutions to employees nationwide.

This call is being webcast by Thomson/CCBN and can be accessed from KMG America's website, http://www.kmgamerica.com/ . Please click on "Analyst/Investor" and there will be a link on the top right for the "Q4 2004 KMG AMER CORP Earnings Conference Call". Please register approximately 5 minutes prior to the call. A rebroadcast will be available after noon on March 31 and may be accessed using the same instructions.

The webcast is also being distributed through the Thomson StreetEvents Network to both institutional and individual investors. Individual investors can listen to the call at http://www.fulldisclosure.com/ , Thomson/CCBN's individual investor portal, powered by StreetEvents. Institutional investors can access the call via Thomson's password-protected event management site, StreetEvents ( http://www.streetevents.com/ ).

This press release contains forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The accuracy of such statements is subject to a number of risks, uncertainties and assumptions that may cause KMG America Corporation's actual results to differ materially from those expressed in the forward- looking statements including, but not limited to: implementation of our business strategy; hiring and retaining key employees; predicting and managing claims and other costs; fluctuations in our investment portfolio; financial strength ratings of our insurance subsidiary; government regulations, policies and investigations affecting the insurance industry; competitive insurance products and pricing; reinsurance costs; fluctuations in demand for insurance products; possible recessionary trends in the U.S. economy; and other risks that are detailed from time to time in reports filed by the company with the Securities and Exchange Commission.